Employee Handbooks: 3 Reasons Employers are Updating Right Now 

While not the usual timing, many organizations are currently reviewing and updating their employee manual.  Generally, employees can expect their human resource department to update their employee handbooks yearly.  Companies often do this around the fall or new year.  However, spring and early summer of 2022 are ideal times for employers across all industries and states to revisit their employee handbook template.  Here are the three key reasons employers should consider employee handbook updates right now.   

3 Reasons to Update Employee Handbooks Now 

1.  Employers are returning their team to the office (full-time or hybrid).  

 As organizations bring their team back to the office (even if it’s only on a hybrid basis), the human resource department should reconsider a few areas of the employee handbook.  Firstly, state employment law may have new requirements, including specialized medical leave, because of COVID.  Even if state laws don’t create new COVID requirements, employers may still want to create their own policies for reporting COVID exposure, quarantining and testing, vaccination, etc.  Besides COVID, employers may be considering other changes.  These changes are in response to The Great Resignation, and will improve their employment relationship with staff.  Many employers are relaxing their dress codes because people grew accustomed to a radically less formal standard after 2020.  An updated dress code in emloyee handbooks could simultaneously relax standards, while reminding employees of what is too casual or inappropriate for the office (or meeting with clients, etc.). Businesses may also want to change their policies around work hours, when and how employees complete their job duties, or vacation time allowances.  The pandemic has shown many employers that their team can operate with the same, or often better, productivity when given more autonomy.  Company culture frequently improves when an employee understands that their managers trust them to get their work done.  Lastly, employers should develop a strong remote work or hybrid work policy if they continue allowing employees to work from home.    
 

2. Concerns about Department of Labor (DOL) audits.  

 To avoid DOL audits, employers are working with HR experts (such as the ones at MP) or an employment lawyer.  A vital part of their process is reviewing and updating employee handbook policies to ensure compliance.  The DOL has announced a few times that in 2022 (and beyond), it intends to conduct more audits and regulate employers more aggressively.  No matter what product or service they offer, employers in every industry are already noting a steep uptick in audits and legal action.  It’s critical for organizations to remember that once the DOL begins an investigation for one concern, they can review every employment practice.  This means a business may be audited for a possible wage and hour violation, but also incur penalties for FMLA or OSHA violations. 

3. Organizations are focused on employee handbook compliance with recent non-COVID legislation. 

Many organizations were so focused on updating their employee handbooks to keep up with COVID, that they missed many of the other new employment laws passed since 2020.  States have been busy passing new laws regarding: 

• Harassment and harassment training 

• Protections against discrimination surrounding natural hairstyles, sexual orientations, pregnancy, and gender expressions 

• Paid Family Medical Leave programs 

• State-specific Family Medical Leave Act (FMLA) requirements 

• Unionization, especially as inflation rises and employees are seeking higher wages 

Additionally, many employers are playing catch-up, as they now have remote employees in other states.  They must ensure their employee handbook policies are in compliance with every state where employees work.  Another approach is to create multiple employee handbooks to cover the states where employees work remotely.  Employers should ensure their employee handbook is completely updated and compliant, because they may be invalid as a legal document if they aren’t.  In a lawsuit or other legal action, if lawyers can show a significant portion of the employee handbook is outdated or noncompliant, it may be considered invalid.  For example, if an employer is sued for worker compensation reasons, and this policy is updated, the employee handbook still can’t be used to support their case if a significant portion of the handbook isn’t updated.