Sandra, manager of a ChickWich fast food restaurant, receives a call from someone identifying himself as Officer Daniels. He claims to be in contact with the regional manager about a customer who had money allegedly stolen by an employee that day. Daniels claims that he is searching the suspect's residence, but will remain on the phone while Sandra detains the employee until the police arrive. Sandra identifies Becky as the suspect based on the description; Daniels confirms the name. Sandra brings Becky to the restaurant office with another employee, Marti. She denies the theft. At Daniels' behest, Sandra searches Becky's pockets and purse and finds nothing. Telling her that the alternative is to have Becky go to jail, Daniels has her strip-search Becky. Daniels tells Sandra that he and other officers are searching Becky's home on suspicion that her brother is involved in drugs, and that Becky may be involved. He has Sandra put Becky's clothes into a bag and take it to her car for inspection by the police. Sandra insists she resume managing the restaurant as it is busy. After Daniels stipulates that a male employee watch Becky for "security reasons", another employee, Kevin, is brought in, but questions Daniels' instructions and leaves. Sandra's fiancé Van takes over; under pressure from Daniels over the beers he drank before driving to the restaurant, he has Becky perform nude jumping jacks to "shake loose" any contraband concealed in her body. After Becky protests, Daniels has Van spank her. Eventually, Becky is coerced into performing oral sex on Van. Van leaves with guilt and is replaced by the custodian, Harold, who is outraged by Daniels' instructions. Harold tells Sandra about Daniels' orders; she calls the regional manager, who tells her he has no idea about any investigation. The police discover that a similar incident happened elsewhere. Daniels is identified by closed circuit recordings and arrested; he is a family man working as a telemarketer. Becky meets an attorney to discuss options for suing Sandra. Sandra, now unemployed and no longer seeing Van, tells a journalist she is a blameless victim.
The film received generally positive reviews and Dowd's performance as the manipulated restaurant manager was met with critical acclaim, earning her the National Board of Review Award for Best Supporting Actress. The review aggregator website Rotten Tomatoes reports an 89% approval rating with an average rating of 7.5/10 based on 140 reviews. The website's consensus reads, "Anchored by smart, sensitive direction and strong performances, Compliance is a ripped-from-the-headlines thriller that's equal parts gripping and disturbing." On Metacritic, it has a score of 68 out of 100 based on 32 reviews, indicating "generally favorable reviews." At the premiere at the 2012 Sundance Film Festival, Compliance was met with controversy, as the audience's response included several walkouts and shouting matches during the film's question and answer session.