compliance
Definition
Compliance means following all the rules, laws, and regulations that apply to your business. These rules can come from the government, your industry, or contracts you have signed with other parties. Staying compliant is an ongoing responsibility, not a one-time task.
Example
A restaurant owner must comply with health department regulations, employment laws, and food safety standards all at the same time. Failing to meet any one of these requirements can result in fines, lawsuits, or even losing your business license.
Watch Out
The rules that apply to your business can change, so what was compliant last year might not be compliant today.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.