There’s no playbook for every HR decision—but the best leaders don’t wait for one.
That was one of the key themes from our recent HR HotSpot webinar with Verstela’s Chief Strategy Officer, Jenifer Lambert, and Michelle Bomberger, CEO and Managing Attorney of Equinox Business Law Group. Their conversation tackled one of the trickiest realities of HR: navigating legal and business risk when the answers aren’t black and white.
This wasn’t a traditional legal update. It was a dialogue—about the gray areas HR leaders live in every day, and how to move forward with clarity when there isn’t one right answer.
HR’s Balancing Act: Risk, Compliance, and Business Needs
HR professionals aren’t just policy enforcers or risk mitigators—they’re decision-makers who have to weigh legal requirements, business goals, and human impact all at once.
Michelle broke it down into three lenses every HR leader should consider when evaluating a decision:
- The law: What legal obligations apply?
- Business strategy: How does this impact key goals or outcomes?
- Risk tolerance: What is the company’s appetite for risk, and how does this decision align with that?
This framework helps HR leaders get unstuck—especially when decisions feel murky or high-stakes.
Common Risk Areas HR Should Be Watching in 2025
Some risks are easy to overlook. Others are underestimated until they become a problem. Here are a few legal blind spots HR teams should be paying close attention to:
- Employee classification: Misclassifying employees as contractors or exempt when they shouldn’t be can lead to costly claims.
- Inconsistent policy enforcement: Applying policies unevenly—especially around discipline or performance—can trigger discrimination claims.
- Poor documentation: In disputes, your best defense is thorough and timely documentation.
So, How Can HR Get Better at Assessing Risk?
It starts with sharpening your decision-making framework and asking the right questions early:
- What’s the risk of acting—and not acting?
Too often, HR is asked whether a termination or decision is legally “safe.” But the business risk of not acting is often overlooked. Consider both. - Where are the gaps in what we know?
No one can know everything. But knowing what you don’t know—and when to get legal involved—is key. Proactive legal support beats damage control. - Do our policies match reality?
A policy is only as strong as your ability to follow it. Inconsistent enforcement or unclear tools can create more risk than they mitigate. - Are managers trained on what matters?
Your frontline leaders are often the ones making decisions that carry legal implications. Train them to recognize risks and escalate when needed.
HR’s Role in Building a Smarter Risk Culture
HR leaders can shift how their organizations think about and approach risk—not just by saying “no,” but by helping the business understand why something is risky and how to move forward wisely.
That means:
- Facilitating cross-functional conversations about risk
- Being clear about the company’s overall risk tolerance
- Escalating when needed—and equipping others to do the same
- Clarifying that no decision is ever risk-free—but good decisions manage risk thoughtfully
Watch the Full Webinar
This session is a must-watch for HR professionals who want to build confidence in their decision-making and contribute more meaningfully to business conversations around risk.
This session is approved for HRCI and SHRM recertification credits.
