Employee handbooks play an important role in shaping workplace culture, guiding employee conduct, and protecting organizations from legal exposure. However, when policies are not regularly reviewed and updated, employers face heightened legal and compliance risks, especially as employment laws continue to evolve. The start of the year is an ideal time to evaluate and refresh your handbook to align with current regulations and reduce potential liabilities.
Key 2025 developments affecting employment policies include:
Here are seven employment policies employers should review in 2026 to help ensure compliance and mitigate risk.
Outdated policies heighten an employer’s legal and compliance exposure. A review and update of employment policies is a practical, cost-effective way for employers to protect their organization.
Forward-thinking employers know handbook updates are more than routine, they are a strategic investment in compliance, culture, and workforce trust. A proactive review not only reduces legal and regulatory risk but also reinforces your reputation and readiness to address workplace challenges. With that in mind, employers should consider reviewing the following employment policies in 2026.
State employee leave laws continue to expand and grow more complex. More states now require paid sick leave (PSL), and some states have mandated paid leave for any reason. Many states and localities have also added or enhanced paid family and medical leave (PFML) programs, each with its own rules on eligibility, qualifying reasons, benefit amounts, funding, and job protection. Several jurisdictions are updating PFML to better align with the federal FMLA, reinforce concurrent usage, and limit employees’ ability to “stack” leave.
Recent updates broaden who is covered, increase available time off, and expand reasons for leave, such as bereavement, miscarriage, prenatal care, school activities, blood donation, public health emergencies, and NICU stays. Some states are increasing benefit levels, adding NICU-specific leave, expanding victim and hate-crime leave protections, and enhancing leave for military families and emergency responders. Many are also redefining “family member” to include grandparents, grandchildren, siblings, and broadly defined “designated persons,” with California setting a leading example.
For employers, “expansion” is the key theme. To stay compliant, you must ensure leave policies are current for every location where employees physically work, clearly describe eligibility and request procedures, avoid unintended discrimination, and reflect the most employee-favorable provisions when federal, state, and local rules conflict. Ongoing monitoring of new laws and amendments is critical to keep your leave policies aligned with evolving requirements.
Pay transparency laws are rapidly expanding across the U.S., requiring employers to be more open about compensation practices. Pay transparency means clearly communicating pay-related information to applicants and employees through defined processes. These laws are designed to reduce pay inequities and promote wage transparency by mandating access to salary data, such as posting pay ranges in job listings or providing salary information to current staff and candidates.
Because requirements vary by jurisdiction, employers must understand the rules wherever employees physically work. Some locations require disclosure only on request, while others mandate more detailed compensation and benefits information upfront. Even organizations not yet directly covered should prepare now, as these laws are becoming more common and will likely create both direct and indirect impacts.
To remain compliant and reduce risk, employers should stay current on applicable pay transparency laws, routinely review job postings, and update internal policies. Consider formally publishing pay scales for open positions, offering training on pay practices, and ensuring your policies reflect evolving legal standards.
State-level restrictions on mandatory “captive audience” meetings about religious or political matters, including union organizing, are expanding. These laws generally bar employers from requiring employees to attend employer-sponsored meetings on these topics, with limited exceptions for legally required communications.
As of 2025, 13 states allow employees to opt out of captive audience meetings and several states have also updated their laws. Some of these laws face legal challenges. In California, a federal district court preliminarily enjoined the state’s ban, finding it violated the First Amendment and was preempted by the National Labor Relations Act (NLRA), so employers there currently do not need to comply while the case continues. A similar challenge to Illinois’ law was dismissed in October 2025. Employers in other states should watch for comparable litigation.
There is still no federal statute banning mandatory meetings on political or religious topics. However, on November 13, 2024, the National Labor Relations Board (NLRB) held that an employer violates the NLRA by requiring employees, under threat of discipline or discharge, to attend a meeting where the employer shares its views on unionization. On February 14, 2025, the acting NLRB general counsel (GC) rescinded prior GC guidance on captive audience meetings and other issues, signaling potential shifts in enforcement priorities. While GC memoranda are not binding, they guide how NLRB regional offices interpret and apply federal labor law and preview likely policy changes. Due to a lack of quorum, the NLRB was limited in 2025, but with a quorum expected in 2026, the board may revisit its 2024 ruling and adopt a different approach.
Given this evolving landscape, employers should review their policies on workplace meetings. Consider clearly stating that meetings addressing religious or political issues are voluntary and that attendance or nonattendance will not affect employment status or benefits. Employers may also wish to prohibit discussion of political or religious matters, including union-related topics, during mandatory meetings. Continue to monitor both federal and state developments on captive audience bans and adjust policies accordingly.
Title VII of the Civil Rights Act (Title VII) prohibits employers from discriminating based on race, color, religion, sex, or national origin (protected traits), whether the individual is part of a minority or majority group. Discrimination against majority-group members is often called reverse discrimination.
On June 5, 2025, the U.S. Supreme Court issued a unanimous decision in Ames v. Ohio Department of Youth Services, confirming that reverse discrimination claims are subject to the same evidentiary standard as all other Title VII discrimination claims. While this ruling does not create new employer obligations, it establishes a uniform standard for all employment discrimination claims and may make it easier for individuals to bring reverse discrimination cases.
Employers should review workplace policies, especially diversity, equity, and inclusion (DEI) initiatives, to ensure they do not directly or indirectly discriminate any protected class, including majority-group members. Consider auditing DEI-related programs and written policies, as well as equal employment opportunity, anti-discrimination, anti-harassment, and anti-retaliation policies, to confirm they:
Title VII generally prohibits private employers with 15 or more employees from discriminating based on religion and requires reasonable accommodations for sincerely held religious beliefs, observances, or practices, unless doing so creates an undue hardship. With the EEOC’s renewed focus on religious discrimination and accommodation, employers should expect more accommodation requests and potential enforcement activity, making it critical to review policies and practices now.
Ensure your religious accommodation policy clearly explains how to request an accommodation, provides examples of common accommodations, states that decisions are made case by case, and prohibits retaliation. In addition, review:
State laws may impose additional or more protective requirements, including different undue hardship standards, so employment policies should be drafted to comply with the most employee-protective rules that apply.
AI is transforming workplaces nationwide, but it also introduces new legal, business, and reputational risks, especially around potential discrimination in hiring and employment decisions. While employers are rapidly adopting AI, the law is still evolving, with a patchwork of federal, state, and local rules that can create compliance challenges.
States are leading the way. For example:
As AI use grows, employers should establish and regularly review workplace policies to address AI-related risks, align with emerging regulations, and prevent potential violations. Proactive, clearly defined AI policies and procedures can help identify exposures and outline strategies to manage them.
Workplace violence is on the rise, and employers have a legal and ethical obligation to provide a safe environment for their teams. While there is no single federal law dedicated to workplace violence, multiple federal and state laws require employers to maintain a hazard‑free workplace and protect employees from threats and harm.
In response to increasing incidents, many states now mandate comprehensive workplace violence prevention plans, employee training, and other safety protocols. Some states have gone further with industry-specific requirements and protections for certain worker groups, such as healthcare, retail, and isolated workers, and several recent updates take effect January 1, 2026.
Now is the time for employers to review and strengthen their workplace violence policies, prevention strategies, response procedures, and training programs. Understanding state and industry-specific requirements, and using available model policies and training materials, can help you reduce risk, support your employees, and maintain compliance.
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