An HR Compliance Manager is a specialized human resources (HR) professional who ensures compliance with employment laws, labor regulations, and internal company policies. The role is important for reducing legal risks and maintaining ethical workplace practices.
Key responsibilities of HR compliance managers
Monitoring and complying with workplace regulations
HR compliance managers oversee the organization’s compliance with employment laws and labor regulations across all jurisdictions where it operates. This responsibility requires staying current on whether new laws are passed or existing ones amended. For example, an HR compliance manager in California in 2025 would be responsible for ensuring that minimum-wage employees’ hourly rate increased from $16 to $16.50 at the turn of the year and complying with other labor law changes that went into effect that year.
When regulatory changes occur, HR compliance managers advise their organization’s leadership on how they impact their HR policies, if at all.
What skills and qualifications are needed?
- Expertise in labor laws and regulatory frameworks. A deep understanding of employment regulations, including the Family and Medical Leave Act (FMLA) and the Americans with Disabilities Act (ADA) in the U.S. and the EU’s European Working Time Directive and General Data Protection Regulation (GDPR).
Developing and enforcing compliance programs, conducting compliance training
HR compliance managers develop and enforce comprehensive compliance programs that safeguard the organization against legal and regulatory risks. This involves creating HR policies that align with labor laws and company values and training other HR staff on these policies. The policies cover various areas, from hiring practices and workplace conduct to compensation and benefits.
They also conduct regular risk assessments and internal audits to evaluate the effectiveness of existing compliance measures. Some companies outsource audits to external partners for a potentially less biased review. These audits, whether internal or external, help identify potential vulnerabilities.
Some companies further demonstrate their commitment to ethical conduct by complying with the business principles outlined in the United Nations Global Compact, which address human rights, labor rights, environmental stewardship, and anti-corruption. For instance, the international conglomerate Siemens models its compliance initiatives after the Global Compact.
What skills and qualifications are needed?
- Strong communication and training abilities. Educating employees and HR teams on compliance best practices.
Managing workplace ethics and anti-discrimination policies
One of the primary responsibilities of an HR compliance manager is creating an ethical, discrimination-free workplace. To that end, they develop company policies that prohibit the unfair treatment of employees based on race, gender, age, disability, and other characteristics. These programs uphold local, regional, and federal laws and regulations that promote fair and equitable treatment of employees. This effort includes developing and managing confidential reporting systems where workers can privately share concerns regarding ethics or discrimination.
When discrimination or ethical complaints arise, HR compliance managers respond by leading investigations to understand what occurred. They interview everyone involved, gather relevant documents, and review any available evidence, such as emails or witness statements. After collecting all necessary information, they 1) determine if company policies were violated and 2) recommend appropriate actions, including additional training, disciplinary measures, or changes to workplace procedures, to prevent similar issues from happening again and to avoid potential legal problems.
Allowing discriminatory practices in the workplace exposes companies to legal risk and reputational damage. In the U.S., the Equal Employment Opportunity Commission (EEOC) enforces laws that protect workers and routinely pursues legal actions against employers who violate employees’ rights.
What skills and qualifications are needed?
- Risk management and policy development. Ability to identify compliance risks and develop HR policies that mitigate legal exposure.
Managing wage, benefits, and payroll compliance
Employee wages, benefits, and payroll are governed by an assortment of local, regional, and federal laws and regulations. HR compliance managers ensure organizations adhere to these by verifying that wage practices comply with minimum wage laws, overtime regulations, and equal pay provisions wherever the company does business. These professionals also monitor benefits compliance to verify that health insurance offerings, retirement plans, and leave policies follow relevant regulations, which vary dramatically depending on the location.
Additionally, they liaise with payroll teams to implement proper tax withholding, maintain accurate talent classification (exempt vs. non-exempt, employee vs. contractor), and ensure that payroll runs on time. By maintaining strict wage and benefits compliance, these managers help organizations avoid penalties, lawsuits, and reputational damage resulting from compensation-related violations.
What skills and qualifications are needed?
- Attention to detail and analytical skills. Ensuring precision in regulatory compliance and detecting compliance gaps in HR policies.
Ensuring data privacy and managing employee records
Safeguarding employee data has become increasingly complex in the digital age. An HR compliance manager develops and enforces policies that protect employee information, such as contact information and salary, among other data points. This is particularly important in regions with strict data protection laws that favor the individual, such as the California Consumer Privacy Act (CCPA) and GDPR. Violations of the law incur penalties and potential reputational damage.
These HR professionals work with IT departments to implement secure systems for storing and transmitting employee data, and they educate staff on best practices for dealing with confidential information.
HR compliance manager vs. other HR roles
HR generalists’ and directors’ functions and responsibilities are far more varied than those of the HR compliance manager.
- HR generalists. These HR professionals handle almost all HR functions that cross their desks, from managing payroll to investigating incidents of harassment. HR compliance managers focus exclusively on legal and regulatory compliance.
- HR directors. HR directors oversee HR strategy, workforce planning, and company-wide HR policies, whereas HR compliance managers ensure those policies comply with labor laws and legal standards.
FAQs
What does an HR compliance manager do?
They ensure an organization complies with employment laws, labor regulations, and internal policies to reduce legal risk.
What qualifications are needed to become an HR compliance manager?
A bachelor’s or other advanced degree in human resources, law, or business administration, plus certifications like the Society for Human Resource Management’s Senior Certified Professional (SHRM-SCP) and the HR Certification Institute’s Professional in Human Resources (PHR) and Senior Professional in Human Resources (SPHR).
How does an HR compliance manager differ from an HR generalist?
HR generalists handle broad HR functions, while HR compliance managers focus solely on legal and regulatory compliance.
Why is HR compliance important?
It protects businesses from lawsuits, financial penalties, and reputational damage while fostering an ethical workplace.
What industries and organizations need HR compliance managers the most?
HR managers are needed in heavily regulated industries like healthcare, finance, technology, and retail, as well as in large multinational corporations in myriad industries.
Comply with local rules and regulations
Businesses expanding into new international markets face an intricate web of jurisdictional employment regulations outside their HR compliance manager’s expertise. Most companies don’t have the time or resources to dig in and gain this knowledge independently. So, partnering with a global employer of record (EOR) can ensure the business remains compliant and can focus on global expansion. Contact Velocity Global to find out more.
