10 Essential HR Policies Every Business Needs

Every organization needs HR policies tailored to its industry and operations. A healthcare provider, for example, must address medical billing compliance and patient privacy, while a law firm requires strict client confidentiality protocols. Yet, no matter the industry, certain HR policies are essential for every business to operate effectively and responsibly.

Clear, current HR policies are the foundation for legal compliance, workplace culture, and employee trust. In this article, we’ll cover 10 critical HR policies every company should have in place.

1. Anti-Discrimination and Harassment Policy

This policy should prohibit all forms of discrimination and harassment in the workplace, covering Title VII (Civil Rights Act of 1964), the Americans with Disabilities Act (ADA), the Age Discrimination in Employment Act (ADEA), and the Pregnant Workers Fairness Act (PWFA).

The policy should outline how to report instances of discrimination and the consequences of violations. It should also include no-retaliation protections, which safeguard whistleblowers and victims so they feel secure stepping forward.¹

2. Wage, Hour, and Overtime Policy

A wage, hour, and overtime policy establishes your company’s rules for employee compensation, overtime, and breaks. It also defines which employees are classified as exempt or non-exempt, ensuring compliance with labor regulations. In addition, the policy should specify record-keeping requirements—such as clocking in and out and tracking overtime hours—to maintain accurate payroll data and meet legal standards.

It’s important to account for both federal and state labor laws when creating this policy. The Fair Labor Standards Act (FLSA) sets nationwide requirements for minimum wage, overtime pay, and child labor, but many states have stricter rules, such as higher minimum wage rates. Your policy should clearly note any state-specific regulations that apply to your workforce.^2,3

3. Workplace Health and Safety Policy

The workplace health and safety policy should include all necessary Occupational Safety and Health Administration (OSHA) compliance and training standards.⁴ This includes ergonomic furniture and tools for workers, mental health support resources, accident prevention strategies, safety training and education, and emergency protocols, including pandemic-ready protocols.

A strong workplace health and safety policy clearly defines everyone’s responsibilities, from managers’ duty to enforce safety standards to employees’ obligation to avoid unsafe behaviors. The policy should also outline how to report incidents, the steps for investigating workplace accidents, and the follow-up actions required to prevent future issues.⁵

4. Leave and Time Off Policy

A leave and time-off policy outlines the types of leave a company offers, including sick leave, vacation, personal days, parental leave, military leave, and jury duty. It explains how employees can request time off, how managers should approve it, and ensures consistency across the organization.⁶

These policies must comply with federal regulations such as the Family and Medical Leave Act (FMLA) as well as state-specific requirements, which may include extended paid parental leave or other protected time-off benefits. Clear leave policies not only keep organizations compliant but also help employees feel supported in balancing work and personal obligations.

5. Remote and Hybrid Work Policy

With employees often dispersed between home and the office, clear remote and hybrid work HR policies are essential. These policies explain which roles qualify for hybrid or remote work. The work expectations should be outlined, such as required availability, expected productivity, and appropriate responsiveness.

The policy should also outline the type of equipment the company will provide and the cybersecurity protocols employees must follow. Some companies may also need to consider out-of-state remote workers, as this can come with tax liabilities, legal jurisdiction, and different workers’ compensation standards.⁷

6. Code of Conduct and Ethics

A code of conduct and ethics complements other HR policies, such as those addressing discrimination and harassment, but focuses on broader standards of day-to-day behavior. This policy defines expected workplace conduct, conflict-of-interest guidelines, and whistleblower protections, ensuring every employee understands the company’s values and culture. It also requires employees to disclose any outside business activities or personal relationships that could create potential conflicts of interest.⁸

7. Data Privacy and Cybersecurity Policy

HR compliance policies for data privacy and cybersecurity protect sensitive employee data and guide HR and IT teams on managing personal data, such as banking information and Social Security numbers. These policies must align with federal and state HR laws, such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA).

The policies also address the ethical use of artificial intelligence (AI) and algorithm usage, requiring clear disclosures about automated decision-making to ensure transparency. In the event of a data breach, the policy outlines step-by-step response protocols to mitigate risk and protect affected individuals. Additionally, the policy may contain nondisclosure agreements (NDAs) to safeguard confidential information shared between employees and the company.⁹

8. Performance Management and Disciplinary Policy

HR policies can also include goal setting, feedback cadence, progressive discipline, and termination procedures. This type of policy clarifies both performance expectations and the consequences of not meeting these expectations. These policies should be fair but balanced, ensuring employees are not punished for aspects out of their control and companies are not forced to employ negligent or apathetic workers.¹⁰

9. Reasonable Accommodation and Accessibility Policy

HR policies on accommodation and accessibility establish clear processes for complying with ADA and PWFA. These policies explain how employees can request accommodations and outline the employer’s responsibilities for implementing them. They also specify what constitutes reasonable accommodation, such as ergonomic equipment or modified workspaces, and extend to religious accommodations, including time off for holidays and observances.¹¹

10. Pay Transparency and Compensation Policy

HR policies on pay transparency and compensation should clearly outline salary ranges, bonus and commission criteria, and protocols for assessing pay equity. These policies ensure employees know the compensation structure and provide a framework for identifying and addressing pay disparities within the company.

Many states now prohibit employers from asking candidates about their salary history, making salary history bans an essential component of modern pay transparency policies. Together, these practices create a fair, consistent, and legally compliant approach to compensation, helping build trust with both current and prospective employees.¹²

Become a Master of HR Compliance Policies and Procedures

Clear, well-structured HR policies and procedures build trust, support workplace equity, and create an environment where employees can thrive. By understanding the legal frameworks behind these policies, HR professionals can proactively address workplace challenges, from compliance issues to ethical dilemmas, and strengthen organizational culture in the process.

With an Online Master of Studies in Law with a Human Resources Law specialization or a focused Human Resources Law Certificate from the University of Pittsburgh School of Law, you’ll gain the legal knowledge and ethical insight needed to lead confidently, manage complex workforce issues, and drive meaningful change in your organization.

If you’re ready to start your journey to mastering HR policies, review the admissions process and apply now. Be sure to reach out to an admissions outreach advisor if you need more information or have any questions.