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Back-to-school, back-to-compliance: Employee policies to review

9/8/26

By: Morgan Randle

As students head back to the classroom this fall, employers should be asking themselves an important question: Is our employee handbook making the grade? Just as schools update curricula to reflect new standards and expectations, employers should regularly review and audit their handbooks to ensure they remain compliant with evolving laws, workplace trends, and organizational needs.

An employee handbook is more than simply a collection of workplace policies. It is often an employer’s first line of defense when responding to employee complaints, agency investigations, or litigation. A well-drafted handbook establishes expectations, promotes consistency, and helps create a positive workplace culture. Outdated or poorly drafted policies can create significant legal exposure and undermine an employer’s best defenses.

The syllabus: why regular handbook audits matter

Many employers treat handbook revisions as a one-time project. In reality, employee handbooks should be viewed as living documents that need regular attention. Employment laws change frequently, court decisions reshape legal obligations, and new workplace realities continue to emerge.

For example, employers have experienced significant developments in recent years regarding accommodation requests, leave administration, harassment prevention, remote work, social media use, and artificial intelligence. Policies that were compliant just a few years ago may no longer reflect current legal requirements or best practices.

A handbook audit allows employers to identify gaps, eliminate outdated language, and ensure policies accurately reflect how the organization actually operates. Just as importantly, it helps employers spot provisions that may unintentionally increase risk in discrimination, harassment, wage and hour, or wrongful termination claims.

The study guide: areas that deserve a closer look

When conducting a handbook review, employers should focus on several high-risk areas.

Leave and accommodation policies often require the most frequent updates. Employers should evaluate whether their FMLA, ADA, and leave-related policies reflect current legal standards and operational realities. Mental health accommodations, intermittent leave requests, and remote work arrangements continue to present challenges that should be addressed clearly and consistently.

Complaint reporting and investigation procedures also deserve careful scrutiny. Employees should have multiple avenues to report workplace concerns rather than being limited to a single reporting channel. Investigation policies should emphasize prompt and thorough review while avoiding promises that may be difficult to fulfill, such as rigid timelines or guarantees of confidentiality.

At-will employment and handbook disclaimers remain critical and are jurisdiction-dependent. Courts have repeatedly examined handbook language to determine whether employers unintentionally created contractual obligations. Statements promising job security, guaranteed progressive discipline, or specific disciplinary outcomes can significantly weaken an employer’s legal position. Employers should ensure that clear at-will disclaimers are included where appropriate and that the handbook expressly states it is not a contract.

Wage and hour policies should be reviewed with particular attention to remote work and after-hours communications. Employers should clearly prohibit off-the-clock work while simultaneously emphasizing that all hours worked must be accurately recorded and compensated. Policies regarding overtime, meal periods, and break practices should be carefully drafted to avoid creating unintended obligations.

Finally, technology, privacy, and AI-related policies have become increasingly important. Employers should evaluate whether their handbooks adequately address electronic communications, system monitoring, data privacy, and the use of artificial intelligence tools in the workplace. As technology continues to evolve, handbook language must evolve with it.

The failing grade: common problems found during handbook audits

During an audit, we frequently discover employer policies that conflict with one another, reference outdated laws, or fail to account for current workplace practices. In some cases, organizations have copied handbook language from online templates or prior versions without considering whether the provisions actually fit their workforce or business operations.

Another common issue is inconsistency between written policies and actual practice. A handbook may describe a progressive discipline process that managers do not follow, or it may reference reporting procedures that employees rarely use. These disconnects can create credibility problems when disputes arise. This is particularly common when organizational changes include mergers or acquisitions.

Employers should also recognize that a one-size-fits-all handbook rarely works. Different industries, workforce structures, geographic locations, and organizational cultures often require customized approaches to policy drafting and implementation.

The group study session: compliance is more than just drafting

Even the most carefully written handbook will provide limited value if it is not properly implemented. Once updates are completed, employers should ensure employees receive the revised handbook, acknowledge receipt, and understand key policy changes. Managers should receive training so they can consistently apply policies and recognize issues that require escalation.

Version control is equally important. Employers should maintain records of prior handbook versions, document revision dates, and ensure that employees have access to the most current policies. For organizations with multiple entities or locations, consistency across affiliated operations can help reduce confusion and minimize risk.

The final exam

A handbook audit is not simply a writing exercise. It is an opportunity to strengthen workplace culture, improve communication, and reduce organizational risk and exposure. As the new school year begins, employers should take time to review whether their policies accurately reflect current laws, workplace realities, and business objectives.

The lesson is simple: a strong employee handbook does more than satisfy compliance requirements. It provides clear expectations, supports effective management, and serves as a valuable tool when challenges arise. With regular review and thoughtful updates, employers can ensure their handbook earns top marks year after year.

For more information, please contact Morgan Randle at morgan.randle@fmglaw.com or your local FMG Law attorney.

Information conveyed herein should not be construed as legal advice or represent any specific or binding policy or procedure of any organization. Information provided is for educational purposes only. These materials are written in a general format and not intended to be advice applicable to any specific circumstance. Legal opinions may vary when based on subtle factual distinctions. All rights reserved. No part of this presentation may be reproduced, published or posted without the written permission of Freeman Mathis & Gary, LLP.