What is compliance management?

Compliance is, and always will be, a top priority for physical security and workplace professionals. The influx of new legislation hasn't made things any less complicated. The evolving regulatory landscape has significantly impacted compliance management by increasing the complexity and scope of laws businesses must follow. And with the rise of remote work, digital tools, and globalization, they also have to navigate different and overlapping laws across multiple states and countries.

Simply put, compliance management is a non-negotiable for businesses that want to prevent legal penalties, protect company reputation, and ensure their workplaces continue to operate without disruptions.

What is compliance management?

Compliance management refers to the process businesses use to ensure they follow legal and industry regulations, protecting data, employees, and visitors. This involves setting up systems and protocols to manage privacy (e.g., GDPR or HIPAA), workplace safety (e.g., OSHA and SB 553), and security (e.g., ITAR and SOC 2).

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Common compliance standards

International Traffic in Arms Regulations

ITAR is a set of U.S. regulations controlling the export and import of defense-related technology and services. Compliance involves registering with the Directorate of Defense Trade Controls (DDTC), securing cloud-stored ITAR data from foreign access, and implementing strict access controls.

If your business handles items on the United States Munitions List (USML), you must comply with ITAR. The DDTC oversees the list of businesses authorized to deal with USML goods and services, but it’s up to each of them to establish the policies necessary for ITAR compliance.

• Who has to comply: Businesses in defense, aerospace, and technology sectors handling military items.
• How to comply: Restrict and track access to sensitive data or technology to U.S. citizens or authorized foreign personnel. 
• Penalties for non-compliance: Civil fines up to $1 million per violation, criminal penalties include imprisonment.
• Example: A drone manufacturer exporting military-grade equipment must ensure that foreign employees and visitors cannot access restricted technology.
• Dive deeper: What are the differences between ITAR vs. EAR?

Export Administration Regulations

The Export Administration Regulations are U.S. laws that govern the export and re-export of commercial and "dual-use" items. In other words, products with both civilian and military applications. For example, software used for data encryption might be essential for business operations, but it can also serve military purposes like enabling secure communication.

• Who has to comply: Tech, aviation, electronics, and chemical companies.
• How to comply: Obtain proper export licenses for items with military applications, such as encryption software.
• Penalties for non-compliance: Fines of up to $300,000 per violation or twice the value of the transaction, along with possible imprisonment.
• Example: A software company exporting encryption tools for both business and defense use must obtain a license before shipping to certain countries.
• Dive deeper: What is Export Administration Regulations (EAR) Compliance?

Occupational Safety and Health Administration

The Occupational Safety and Health Administration (OSHA), part of the U.S. Department of Labor, sets and enforces workplace safety and health standards. Businesses, especially in manufacturing, must comply with these regulations, which cover safety protocols, employee training, secure data storage, and maintaining a safe environment.

• Who has to comply: Virtually all businesses in sectors such as construction, manufacturing, healthcare, and logistics.
• How to comply: Develop workplace safety programs, conduct safety training, and maintain incident logs.
• Penalties for non-compliance: Violations can lead to serious financial penalties, starting at $16,131 per infraction and reaching up to $161,323 for repeated offenses.
• Example: A factory must provide protective equipment, conduct regular safety audits, and train employees on emergency procedures to comply with OSHA.
• Dive deeper: An OSHA-compliant visitor email template

California's Senate Bill 553

California recently introduced Senate Bill 553 (SB 553) to address workplace violence concerns. Most employers must create Workplace Violence Prevention Plans (WVPPs) as part of their Cal/OSHA Injury and Illness Prevention Plans (IIPP). These customized plans focus on prevention, intervention, and employee assistance. They must outline procedures for identifying risks and emergency responses and include annual employee training. Cal/OSHA enforces SB 553.

• Who has to comply: All California employers, except healthcare facilities and those working remotely.
• How to comply: Employers must create and maintain a Workplace Violence Prevention Plan (WVPP), conduct employee training, and establish emergency response procedures.
• Penalties for non-compliance: Violations can lead to fines, lawsuits, or penalties from Cal/OSHA.
• Example: A retail store must create a WVPP to address security risks like theft or violence against employees.
• Dive deeper: Acting on SB 553: Prioritizing workplace safety

General Data Protection Regulation

The GDPR is a data privacy regulation from the European Union designed to protect the personal information of EU citizens. It was introduced in response to corporate misuse of user data for marketing and research purposes, ensuring stricter controls on how companies handle and share personal data.

• Who has to comply: Any business handling personal data from EU citizens, including non-EU companies.
• How to comply: Encrypt personal data, allow users to consent to data collection, provide options to delete their data, and notify users of data breaches within 72 hours.
• Penalties for non-compliance: Fines up to €20 million or 4% of global annual turnover, whichever is higher.
• Example: A U.S.-based e-commerce company serving EU customers must encrypt personal data and offer users the right to opt out of data collection.
• Dive deeper: What is GDPR, the EU’s new data protection law?

California Consumer Privacy Act

The California Consumer Privacy Act (CCPA) is a California law that gives residents more control over their personal data. Any business handling data from California residents must comply. This law allows individuals to know how their data is used, shared, or sold, and they can request its deletion or opt out of its sale.

• Who has to comply: Any business that collects personal data from California residents, regardless of location.
• How to comply: Businesses must disclose how they collect, use, and share personal data. Consumers must have the option to request deletion or opt out of data sales.
• Penalties for non-compliance: Fines of up to $7,500 per violation, with potential lawsuits from affected individuals.
• Example: An e-commerce company collecting customer data from Californians must allow them to opt out of data collection and provide clear data usage disclosures.
• Dive deeper: California Consumer Privacy Act (CCPA)

Health Insurance Portability and Accountability Act

The Health Insurance Portability and Accountability Act (HIPAA) is U.S. legislation that requires the protection of individuals' health information by any "covered health entity." To be HIPAA compliant, organizations must implement administrative, physical, and technical safeguards, including tracking workplace visitors like employees, vendors, and contractors.

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• Who has to comply: Healthcare providers, health insurers, and any business that handles personal health information (PHI).
• How to comply: Secure electronic health records, ensure proper access control, and maintain a privacy policy.
• Penalties for non-compliance: Fines range from $100 to $50,000 per violation, with a maximum of $1.5 million per year.
• Example: A telehealth provider must encrypt patient health data and ensure only authorized personnel can access it.
• Dive deeper: ​​​What is HIPAA?

Service Organization Control 1 and 2

SOC is a set of reports established by the American Institute of Certified Public Accountants (AICPA) to assess an organization’s cybersecurity approach. SOC-certified organizations undergo regular audits of their IT controls, policies, and procedures.

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• Who has to comply: SaaS companies, cloud service providers, and organizations handling customer data.
• How to comply: Establish strong data security controls around five principles: security, availability, processing integrity, confidentiality, and privacy.
• Penalties for non-compliance: Loss of certification, reputational damage, and potential legal liabilities in case of breaches.
• Example: A cloud storage company must maintain access control logs and encrypt customer data to achieve SOC 2 compliance.
• Dive deeper: Visitor management and SOC 2 compliance: What you need to know

What are the key elements of compliance management?

Data protection and security

Laws like GDPR, CCPA, and HIPAA require strict handling of sensitive data. For example, Envoy's system encrypts data and stores it securely in AWS data centers. SOC 2 standards are used to ensure the highest level of data security through two-factor authentication, encrypted computers, and access logs.

Visitor management systems

Compliance also involves tracking who enters a facility. For manufacturers, in particular, this is crucial for meeting OSHA, ITAR, and GDPR standards. A visitor management system (VMS) can help you record visitor data, verify identities, and control access to sensitive areas. For instance, Envoy's VMS enables users to check visitors against blocklists, ensuring unauthorized individuals are denied entry. This is particularly important in sectors handling military-related technology, which falls under ITAR and EAR regulations.

Workplace safety regulations

Compliance with OSHA or California's SB 553 means employers must have safety plans in place, including emergency notification systems. Visitor management solutions, like Envoy Visitors, provide real-time occupancy tracking and emergency notifications, which help during emergencies like workplace violence. These features are designed to protect employees and visitors and reduce liability.

Auditable records

To comply with various laws, businesses must keep detailed records of workplace activities, especially visitor logs. These logs are vital for audits, ensuring that companies can prove they've followed legal protocols. For example, under ITAR, visitor records must show whether individuals accessing certain areas were U.S. citizens.

Automation and efficiency

Managing compliance manually is prone to errors. Automation technology, provided by many VMS solutions, helps minimize mistakes, automatically purging sensitive data when needed and providing real-time alerts if non-compliance is detected.

How a visitor management system helps with compliance management

A visitor management system does more than track and manage visitor access—it helps businesses stay compliant with key regulations. From customized check-ins to badge issuance, a VMS comes with features and capabilities that help workplaces meet important standards, streamlining compliance processes while improving security.

• Customizable sign-in flows help manufacturers meet compliance requirements. A VMS lets you tailor the sign-in process for different visitors—including contractors, vendors, and clients—so the right information is collected. For example, contractors might need to submit safety certifications and sign NDAs, while other visitors could be required to watch a safety video.
• Digitized visitor logs help businesses track each visitor's entry, exit, and other key details (e.g., the purpose of their visit or whom they're meeting). By maintaining accurate and up-to-date records, workplaces can stay prepared for potential audits and ensure compliance with regulations.
• As mentioned above, California's SB 553 requires businesses to have a process for sending emergency notifications to all onsite employees and visitors. A visitor management system enables users to send real-time alerts to all impacted individuals, including details about the emergency and evacuation routes. Some advanced solutions like Envoy Visitors even allow employees to confirm their safety via SMS, email, or mobile apps.
• Integrating access control systems with a VMS allows for centralized management of entry points and permissions. With Envoy, you can integrate with solutions like Kisi and Brivo Access to set access levels based on visitor type, employee roles, or departments. For example, in a biotech company, lab technicians may need access to rooms with hazardous materials, while HR or accounting teams may only need access to common areas.

Tools like visitor management systems help by tracking visitor information, controlling access to sensitive areas, and maintaining records for audits. Automated processes and strict data security protocols reduce human error and improve efficiency, helping businesses avoid penalties.

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Interested in learning how a visitor management system can help your organization maintain compliance? Check out our comprehensive VMS guide to learn more!