Benchmark Report: The Current State of HR Compliance and Employment Law

Navigating compliance is a key concern for HR pros in any industry and keeping up with legislative changes while anticipating future developments is essential for maintaining adherence with legal requirements. 

Recently, Verified Credentials sponsored HR.com’s State of Legal Compliance and Employment Law 2025 report, covering the current state of compliance readiness, resource allocation, tools and technologies, and how external forces play a part in legislative trends. This report examines the factors influencing those responsible for HR compliance within their organizations and offers insight into the strategies and resources HR professionals are applying to navigate the continuously evolving compliance landscape. Read the full report to learn more.

The need for compliance preparedness

HR.com's 2025 research found that:  

Only 1/3 of respondents have a proactive approach to labor law compliance.

With 34 percent of surveyed employers experiencing employment-related enforcement action in the last year, it’s no secret that organizations can benefit from implementing targeted efforts to proactively address compliance concerns. The recent rise in laws guiding the use of AI for business case scenarios is another factor driving the demand for organizations to establish a standard compliance procedure.

A lack of resources and support

Many organizations have confirmed they experience weaknesses in their employment compliance processes, with fewer than half considering their initiatives to be well-funded. Inadequate levels of a multitude of resources are cited as the cause of the cracks in the foundation:

Less than 40% of organizations receive adequate tools, technologies, and support (i.e., budget).

Less than 50% of organizations receive adequate education and training.

Additionally, more than 1/5 of organizations rated themselves a six or less on a 10-point scale measuring their ability to stay up-to-date with compliance updates. According to respondents, this difficulty stems from the constantly expanding scope of federal and state HR mandates.    

>> Stay on top of screening compliance trends by following our Industry Newsletter. 

Automation and integration are seen as a challenge

Some HR departments have reported difficulties in integrating and automating compliance technologies; this ordeal imposes a significant burden on HR teams and leads staff to spend a large part of their workweek addressing compliance issues.

Over half of respondents expressed dissatisfaction or neutrality towards the automation and integration of their compliance processes.

Organizations in this situation could benefit from a simple, streamlined platform that simplifies the process for administrative and reporting requirements necessary for employment screening compliance.

>> Learn more about our state-of-the-art platform with easy integration capabilities. 

We’re committed to keeping clients informed about significant changes in compliance law that may impact them. Our Resource Library is filled with tools that can help HR teams review their background check compliance with their trusted legal team, and our Industry News page provides a quick overview of what’s trending in screening laws and regulations.

The content above is just a fraction of the significant findings in HR.com's State of Legal Compliance and Employment Law 2025—download the complete report now to get all the data.