Employee handbooks play a crucial role in setting expectations, addressing workplace concerns, and mitigating legal risks. However, failing to update these policies regularly can leave employers vulnerable to costly fines, penalties, and lawsuits. With the start of 2025, employers have an excellent opportunity to review and update their employment policies in response to recent legal and regulatory developments.

Key Policies to Review

1. Captive Audience Bans Several states have introduced laws prohibiting employers from mandating attendance at meetings focused on religious or political matters, including union organization. As of 2025, 12 states, including California, Illinois, and New York, have implemented such bans. Employers should ensure their policies make these meetings voluntary and avoid coercion.
2. PWFA Reasonable Accommodations The Pregnant Workers Fairness Act (PWFA), effective since June 2023, mandates accommodations for pregnancy-related limitations unless it imposes an undue hardship on the employer. Employers should draft clear policies outlining the accommodation process and align these with the Equal Employment Opportunity Commission’s (EEOC) latest guidelines.
3. Paid Family and Medical Leave Paid leave laws are expanding rapidly. In 2025, states like Alaska, Maryland, and Michigan will implement new regulations. Employers must ensure compliance with varying state and local laws, detailing eligibility, accrual methods, and permissible reasons for leave.
4. CROWN Acts Protecting against discrimination based on hairstyles historically associated with race, CROWN Acts have been adopted in 27 states. Employers should revise dress codes and grooming policies to prevent racial discrimination and comply with these laws.
5. Expanded Protected Classes States and municipalities are broadening the scope of protected classes. Recent additions include traits like height, weight, caste, and reproductive health decisions. Employers must update discrimination policies to address these expansions and monitor ongoing legislative changes.
6. Pay Transparency Pay transparency laws, designed to combat wage inequality, are becoming widespread. States like Illinois, Minnesota, and Vermont will enact new requirements in 2025, ranging from salary disclosures in job postings to providing pay information upon request. Employers should develop strategies to comply with these laws proactively.
7. National Labor Relations Act (NLRA) Employee Rights With increased enforcement of the NLRA, policies should be reviewed to ensure compliance with employees’ rights to organize and engage in concerted activities. Employers should examine policies related to personal conduct, confidentiality, and social media to avoid infringing on these rights.

Action Steps for 2025

Regularly reviewing and updating employment policies is essential for legal compliance and mitigating risks. Employers should:

• Stay informed about federal, state, and local regulations.
• Update handbooks to reflect new legal requirements.
• Train HR teams and management on policy changes.

By taking these steps, organizations can foster a compliant and inclusive workplace while minimizing potential liabilities.