HR Compliance Checklist for Employers in 2026

HR compliance is one of the most complex and high-stakes areas of running a business. Federal and state regulations govern nearly every aspect of the employment relationship — from hiring to benefits to termination. And the penalties for non-compliance can be severe.

This checklist covers the key compliance areas every employer should review in 2026.

Benefits Compliance

ERISA (Employee Retirement Income Security Act)

• Plan documents are current and include all required provisions
• Summary Plan Descriptions (SPDs) have been distributed to all participants
• Form 5500 has been filed (required for plans with 100+ participants)
• Fiduciary responsibilities are documented and followed
• ERISA bond is in place (required for plans handling plan assets)

ACA (Affordable Care Act)

• ALE status has been determined for the current year
• Minimum essential coverage is offered to 95%+ of full-time employees
• Coverage meets minimum value and affordability standards
• Forms 1094-C and 1095-C have been filed and distributed
• Variable-hour employees are being tracked for eligibility

COBRA

• General notices are provided to new enrollees within 90 days
• Election notices are sent within 44 days of qualifying events
• Qualifying event tracking process is documented
• COBRA premiums are calculated correctly (up to 102% of plan cost)
• Premium payment and grace period procedures are in place

HIPAA

• Business Associate Agreements (BAAs) are in place with all vendors who handle PHI
• Privacy notices have been distributed
• Security policies and procedures are documented
• Breach notification procedures are in place
• Annual HIPAA training is conducted

Leave Compliance

FMLA (Family and Medical Leave Act)

• FMLA poster is displayed (required for employers with 50+ employees)
• FMLA policy is in the employee handbook
• Eligible employees are notified of FMLA rights when leave is requested
• FMLA designation notices are provided within 5 business days
• FMLA records are maintained for 3 years

State Leave Laws

• State-specific leave laws have been reviewed (many states have laws more generous than FMLA)
• Paid family leave requirements have been assessed
• Sick leave accrual policies comply with state law

Wage and Hour Compliance

• Minimum wage rates have been reviewed (federal and state)
• Overtime policies comply with FLSA requirements
• Employee classifications (exempt vs. non-exempt) have been reviewed
• Independent contractor classifications have been reviewed
• Pay equity analysis has been conducted

Workplace Safety

• OSHA 300 log is maintained and posted annually (Feb 1 – Apr 30)
• Safety training is documented
• Workplace injury and illness reporting procedures are in place
• Required OSHA posters are displayed

Hiring and Onboarding

• I-9 forms are completed within 3 days of hire and stored correctly
• Background check procedures comply with FCRA
• Job descriptions are current and accurate
• Offer letters do not create unintended contractual obligations
• New hire reporting is completed within required timeframes

Termination

• Final pay procedures comply with state law
• COBRA notices are sent within required timeframes
• Separation agreements are reviewed by legal counsel
• Unemployment insurance procedures are documented

The Cost of Non-Compliance

HR compliance violations can result in:

• ERISA penalties: Up to $110/day per participant for notice failures
• ACA penalties: Up to $4,350 per employee
• COBRA penalties: Up to $110/day per qualified beneficiary
• HIPAA penalties: Up to $1.9 million per violation category per year
• FMLA violations: Back pay, front pay, and liquidated damages

Getting Help

No small business HR team can stay on top of all of these requirements alone. Working with an experienced benefits advisor, employment attorney, and HR consultant is the most cost-effective way to manage compliance risk.

Our team specializes in benefits compliance — ERISA, ACA, COBRA, and HIPAA. Contact us to schedule a compliance review.

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Anderson Financial Group provides independent employee benefits consulting. This checklist is for informational purposes and does not constitute legal advice.