An employee handbook is a crucial tool for a business to communicate its policies, procedures, and expectations, and to ensure legal compliance. However, employee handbooks need to be reviewed and updated regularly to achieve these objectives. Here are five reasons to update your employee handbook in 2025:
In addition, as workforces increase in numbers, businesses may become subject to additional legal requirements. For example, the federal Family and Medical Leave Act, which requires certain employers to provide up to 12 weeks of family and medical leave to employees, applies to employers with at least fifty employees within seventy-five miles. Staying updated helps businesses avoid pitfalls in employment law compliance.
1. Ensure Legal Compliance
Perhaps the most important purpose of employee handbooks is to ensure compliance with federal, state, and local laws and regulations, which are constantly evolving. Thus, handbooks need to be updated to reflect recent legal developments, such as a National Labor Relations Board ruling on the legality of workplace rules, the federal Pregnant Workers Fairness Act, and various state laws requiring paid time for sick leave and other types of leave.
In addition, as workforces increase in numbers, businesses may become subject to additional legal requirements. For example, the federal Family and Medical Leave Act, which requires certain employers to provide up to 12 weeks of family and medical leave to employees, applies to employers with at least fifty employees within seventy-five miles. Staying updated helps businesses avoid pitfalls in employment law compliance.
2. Reflect Changing Nature of Workplace
The nature of many businesses has changed significantly with the growth of virtual and hybrid workplaces following the COVID pandemic, and handbooks should be updated to reflect the new post-pandemic reality.
Many businesses that operated in one state prior to the pandemic now operate in many states because their employees work remotely in different states. As a result, many handbooks now include an addendum for each state where employees work to ensure compliance with state and local laws.
3. Address Changing Technology
Handbooks should be updated to reflect technological developments, such as the use of artificial intelligence (AI) tools and remote work platforms.
4. Reflect Changing Workplace Norms
As workplace norms evolve, so too should handbook policies. Many businesses are updating their handbooks to include policies related to diversity, equity, and inclusion (DEI), employee benefit programs, parental leave, and employee well-being.
5. Effectuate Practical Changes
For handbooks to be practical tools for employers and employees, they must reflect the actual policies, procedures, expectations, and company culture of the business. Workplaces policies necessarily evolve over time and handbooks should be updated to reflect these changes. Businesses should view handbooks as dynamic documents that must evolve as businesses do.
It is advisable for businesses to conduct an internal handbook review annually and a review by legal counsel every two to three years.
If you have questions or concerns regarding employee handbook updates or other employment matters, please contact Maureen Carr at mcarr@beankinney.com.
This article is for informational purposes only and does not contain or convey legal advice. Consult a lawyer. Any views or opinions expressed herein are those of the authors and are not necessarily the views of any client.