2026 US & Canadian HR Compliance Checklist

Your Complete Guide to Federal, State & Provincial Employment Law Requirements

For companies with 20–500 employees operating in the US, Canada, or both

By VeloPulse HRIS | Updated March 2026

This checklist provides a compliance overview and is not legal advice. Consult employment counsel for your jurisdiction.

1 US Federal Compliance

Fair Labor Standards Act (FLSA)

Minimum wage compliance (current: $7.25/hour federal) Review state/local minimums; some states exceed federal. Penalties: up to $10,000 per violation.

Overtime rules (1.5x for hours over 40/week) Confirm exemption status (executive, administrative, professional). Misclassification penalties: $1,000–$5,000 per employee.

Payroll recordkeeping (3+ years) Name, address, DOB, Social Security, job title, hours, wages, deductions. Audits by DOL Wage & Hour Division.

Family and Medical Leave Act (FMLA)

FMLA poster and policy posted Required in English and common workplace languages. Penalty: $142 per day (WH-380-E poster).

12 weeks unpaid leave for covered reasons Birth, adoption, serious health condition, military caregiver, qualifying exigency. Applies to employers 50+ employees.

Health insurance continuation during FMLA leave Maintain same coverage; employee pays premiums. Failure to restore = liability + damages.

Americans with Disabilities Act (ADA)

Interactive process for reasonable accommodations Document all requests, denials, and accommodations. Failure = $75,000+ in damages.

Physical accessibility (facilities, restrooms) ADA Title III compliance. Accessible parking, ramps, restrooms. DOJ enforcement under Title II/III.

No discrimination based on disability Medical inquiries only post-offer. Medical records kept confidential. EEOC complaints have 180–300 day statute.

Title VII & Equal Employment Opportunity (EEOC)

Anti-discrimination and harassment policy Race, color, religion, sex, national origin, pregnancy, sexual orientation, gender identity. Penalties: $75,000–$300,000+ per violation.

Documented investigation process for complaints Timely, impartial investigations. Retaliation is illegal. Keep records for 1+ year.

EEO-1 reporting (if 100+ employees) Due March 31 annually. Reports workforce demographics by job category and pay band.

COBRA (Consolidated Omnibus Budget Reconciliation Act)

COBRA eligibility notices at hire Employers 20+ employees. Coverage lasts 18–36 months. Failure to notify = $200/day penalties.

COBRA notices upon termination/benefit loss Must provide within 14 days. Premium up to 102% of plan cost.

Affordable Care Act (ACA)

Applicable Large Employer (ALE) determination 50+ FTE employees = ALE. Provide coverage or pay penalties ($2,500–$4,150 per employee/year).

Form 1095-C issuance and IRS reporting Due by March 31 annually. Employee health coverage offer and periods covered.

Essential Health Benefits coverage if offering plans Preventive care, emergency, hospitalization, maternity, prescription drugs, etc.

Form I-9 & E-Verify

Form I-9 completion within 3 days of hire Verify employment authorization. Keep on file for 3 years from hire or 1 year from separation.

E-Verify enrollment (if federally mandated) Federal contractors must use E-Verify. Some states (TX, AZ) mandate it. Violations: $100–$1,000 per employee.

Occupational Safety and Health (OSHA)

OSHA 300 Log of work-related injuries and illnesses Record all incidents; post summary Jan 1 – April 30. Penalties: $10,000+ per violation.

OSHA 300A posting deadline (April 30) Annual summary of injuries/illnesses. Must remain posted through April 30 of current year.

Workplace safety procedures and hazard communication SDS (Safety Data Sheets), training. OSHA audits = $15,000+ penalties.

WARN Act (Workplace Adjudication and Restructuring Notification)

Plant closing / mass layoff notices (60+ days advance notice) Applies to employers 100+ employees. Penalties: $500/day per violation.

2026 Updates & New Requirements

FTC Non-Compete Ban (2023 rule; status TBD litigation) Monitor updates. If enforced, existing non-competes may become unenforceable. Check state law carve-outs.

DOL Salary Threshold Updates (2026 adjustments expected) FLSA exempt thresholds indexed to inflation. Monitor DOL announcements quarterly.

Pay Transparency Laws expanding nationwide More states adopting salary disclosure in job postings. CA, NY, IL, CO, WA leading. Plan now.

2 US State-Level Compliance (Top 7 Priority States)

California

CCPA/CPRA (California Consumer Privacy Act) Data privacy for job applicants and employees. Penalties: $2,500–$7,500 per violation.

CalOSHA compliance and Cal/OSHA 300 reporting State-level OSHA. Standards often stricter than federal. Audits and penalties: $15,000+.

Paid Family Leave (up to 8 weeks) State SDI. Employee/employer contributions. Must accommodate up to 8 weeks per year.

Pay Transparency (SB 1162) Include salary ranges in job postings. Required from Jan 1, 2023 onward. Penalties: $250–$5,000 per violation.

New York

NY HERO Act (Health and Essential Rights) Workplace safety standards for hazards (heat, infectious disease). Penalties: $1,000–$2,000/day.

Paid Family Leave (up to 12 weeks) Phased in through 2027. Now covers 10 weeks. Employee + employer contributions.

Wage Theft Prevention Act Pay stubs showing wages, deductions, hours. Violations: $500–$1,000 per employee per week.

Texas

E-Verify mandate (all employees) Required for all hires since Jan 1, 2008. Non-compliance: suspension of business licenses.

Workers' compensation (opt-out allowed for non-construction) Texas is unique; WC not mandatory. If opting out, have liability coverage. Document election.

Florida

E-Verify mandate (all employees) Effective Jan 1, 2009. Violations: suspension of business registration, fines $1,000+ per violation.

Workers' compensation required Coverage for all employees. Misclassification penalties: substantial civil/criminal liability.

Illinois

BIPA (Biometric Information Privacy Act) Biometric data collection (fingerprints, faces) requires written consent. Penalties: $1,000–$5,000 per violation.

Pay Transparency (HB 5286) Salary ranges in job postings. Penalties: $500–$1,000 per violation.

Paid Leave law (minimum 1 week annually) Paid leave for any reason. Accrual: 1 hour per 30 hours worked.

Massachusetts

Earned Sick Time (minimum 40 hours/year) Accrual or front-loaded. Use for illness, care, domestic violence, sexual assault. Penalties: $300+ per violation.

Non-compete limits (Garden Leave pay required) Non-competes must be reasonable; garden leave obligation increases enforceability. Restrictions tightening.

Pay Equity law (PEACE Act) Job descriptions include pay ranges. Can't rely on salary history. Audit pay gaps by gender/race.

Washington

Paid Family and Medical Leave (PFML) Up to 12 weeks paid. Employer/employee contributions. Integrated with state program.

Long-Term Care Insurance (WA Cares Fund) 0.58% payroll tax. All employees pay unless opts out with private coverage. Complex compliance.

Pay Transparency (salary ranges required) Expanded beyond postings; transparency for pay equity. Penalties tracked.

3 Canadian Federal Compliance

Canada Labour Code (Federally Regulated Employers)

Minimum wage, hours, overtime compliance Federal: $18.15/hour (from 1 April 2026). Overtime: 1.5x over 8 hours/day or 40 hours/week. Administered by the federal Labour Program (ESDC).

Statutory holidays and vacation entitlements Federal: 10 statutory holidays, 2 weeks vacation minimum (3 weeks after 15 years). Paid sick leave (3 days).

Parental leave provisions Birth: up to 17 weeks; adoption: up to 16 weeks. EI replacement income. Not federal mandate but integrated.

Workplace health and safety (Part II Canada Labour Code) Hazard assessment, incident reporting, joint health & safety committees. Penalties: $100,000+ per violation.

Employment Equity Act

Proactive equity measures for women, Indigenous peoples, people with disabilities, minorities Employers 100+ employees must have equity plans and report annually. Compliance audits by ESDC.

Pay equity analysis (equal pay for work of equal value) Compare across designated groups. Remedies for gaps required. Part of annual report if 100+ employees.

Canadian Human Rights Act (CHRA)

No discrimination (race, color, national origin, religion, disability, sex, sexual orientation, gender identity, age) CHRC investigates complaints. Penalties: up to $50,000 damages + remedial measures.

Accommodation of disabilities and other grounds Duty to accommodate to point of undue hardship. Document interactive process.

Harassment and sexual harassment policy Employer liable for creating safe work environment. Complaints go to CHRC. Mediation available.

Personal Information Protection and Electronic Documents Act (PIPEDA)

Employee personal information privacy policy Written policy on collection, use, disclosure of employee data. OPC complaints. Penalties: up to $20,000.

Data retention and secure storage Keep employee files secure (passwords, encryption). Right to access own records. Data breach notification required.

Official Languages Act

Bilingual services (English & French) in designated regions High language requirement (HLR) positions must be staffed bilingual. Applies to larger federal employers.

4 Canadian Provincial Compliance (Top 4 Priority Provinces)

Ontario

Employment Standards Act, 2000 (ESA) Min wage: $17.95/hr (from 1 October 2026). Overtime: 1.5x over 44 hours/week (varies by industry). 2 weeks vacation.

Occupational Health and Safety Act (OHSA) Hazard assessment, incident reporting, joint H&S committee if 20+ employees. Penalties: up to $1.5M + personal liability.

Accessibility for Ontarians with Disabilities Act (AODA) Customer service accessibility, employment standards. Multi-year compliance plan required. Fines: $50,000+ per violation.

Pay Transparency Act (effective Nov 2023) Salary ranges in job postings. Protect applicants from inquiries about salary history. Penalties: up to $50,000.

British Columbia

Employment Standards Act Min wage: $18.25/hr (from 1 June 2026). Overtime: 1.5x over 8 hrs/day or 40 hrs/week; 2x over 12 hrs/day. 2 weeks vacation.

WorkSafeBC and Occupational Health & Safety Regulation H&S committees mandatory at 20+ employees. Audits and incident investigations. Penalties: $100,000+.

Pay Transparency (expanding) Salary ranges in job postings now required. Policy evolving; monitor updates.

Alberta

Employment Standards Code Min wage: $15.00/hr. Overtime: 1.5x over 8 hrs/day or 44 hrs/week. 2 weeks vacation.

Occupational Health and Safety Act Hazard ID, incident reporting, joint OHS committees. Alberta WCB mandatory. Penalties: $250,000+.

Quebec

Bill 96 - French Language Requirements Workplace language of instruction = French (with exceptions). Penalties: $6,000–$20,000+ per violation. High impact.

Act Respecting Labour Standards Min wage: $16.60/hr (from 1 May 2026). 2 weeks vacation after 1 year of service. Child labour protections. Administered by CNESST.

CNESST (Commission on Standards, Equity, Health & Safety) Health & safety, workers' compensation, labour standards enforcer. Inspections + penalties: $15,000+.

Charter of the French Language – workplace signage & communications Internal communications predominantly French. Francization certificates for employers 50+ employees. High fines for non-compliance.

5 Cross-Border Compliance (US + Canada Operations)

Immigration & Work Authorization

Work permit tracking (US: H-1B, L-1, TN; Canada: LMOs, IEC, GIC) Monitor expiration dates, extensions. US E-Verify + Canada PR/work permit verification. Penalties: deportation + fines.

TN visa eligibility (USMCA professional workers) Canadians/Mexicans can work in US without LCA. Must prove profession qualifies. No cap. Easier than H-1B.

Cross-Border Tax & Benefits

US-Canada tax treaty implications (treaty benefits, withholding) Dual taxation relief. Form 8288-B for Canadian residents. CRA + IRS coordination. Complex; professional advice recommended.

Multi-jurisdiction payroll (IRS + CRA, state + provincial) Double filing: 1040 (US) + T1 (Canada) for cross-border employees. RRSP contributions vs. 401k.

Data Privacy & Residency

PIPEDA data residency requirements (Canadian data kept in Canada) Cloud storage: verify provider compliance. US state privacy laws (CA CPRA, NY, etc.) also apply if US employees.

State privacy laws (CA, NY, CO, etc.) intersecting with PIPEDA Apply most restrictive rule. Employee data access rights, breach notification timelines. Document procedures.

Benefits Harmonization

Pension/RRSP coordination (US 401k vs. Canada RRSP) Coverage rules differ. Employees must opt into each country's plan. Contribution limits: $69,500 (US 2024), $31,560 (Canada 2024).

Health insurance continuity across borders US health plans don't cover Canada (generally); Canadian coverage may not cover US. Supplemental insurance required.

6 Monthly/Quarterly Compliance Calendar

Month	Compliance Tasks
January	W-2/T4 Distribution (US by Jan 31, Canada by Feb 28) ACA Form 1095-C (by Mar 31, but track from Jan) Benefits Enrollment (if annual open enrollment) PIPEDA audit (Canadian data residency review)
February	I-9 Audits (random or in response to DOL requests) Compliance Training (OSHA, FMLA, ADA refresher) Canada T4 Submission deadline (Feb 28)
March	Form 1095-C deadline (Mar 31 to employees and IRS) EEO-1 Reporting prep (if 100+ employees; due March 31 in even years) State-level law changes (effective Jan 1; review now)
April	OSHA 300A posting deadline (by April 30) US tax filing deadline (Apr 15 for employees; payroll processing) Harassment investigation reviews (Q1 close-out)
May	FMLA eligibility audits (confirm 1-year lookback data) ADA accommodation reviews (assess requests, denial reasons)
June	H-1B/TN visa renewals (if applicable; processing time 3–6 months) Pay equity audits (CA, MA, NY, Canada provinces)
July	Mid-year law changes review (state, federal, provincial) ACA employer mandate check (if applicable; track employee hours) Canadian provincial holiday review (Aug–Sep holidays)
August	Benefits plan audits (coverage gaps, COBRA compliance) Workplace safety inspections (OSHA, WorkSafeBC, CNESST prep)
September	Open Enrollment Planning (benefits, 401k/RRSP matching) Policy review & updates (incorporate year-end legal changes) Training refresher (discrimination, harassment, safety)
October	Open Enrollment execution (communicate to employees) Q4 payroll planning (bonuses, year-end adjustments)
November	Year-end payroll audit (1099, W-2, T4 data reconciliation) Year-end benefits review (FSA carryover, HSA limits) Cross-border employee reviews (tax, permit status)
December	Year-End Compliance Audit (comprehensive multi-jurisdiction review) 1099/T4 preparation (issue by Jan 31/Feb 28) FMLA recertification (3-year cycles; track renewals) Planning for next year (salary threshold changes, new state laws)