Employment Policies Every Employer Should Review Going Into 2026

As the workplace continues to evolve, employee policy and handbooks remain one of the most important tools for shaping company culture, guiding behavior, and protecting employers from legal risk. Yet many organizations neglect to update their policies regularly, leaving them vulnerable to compliance issues, lawsuits, and operational challenges.

With employment laws shifting rapidly at the federal, state, and local levels, the start of a new year is an ideal time for employers to revisit their policies. Below are key policy areas employers should review closely as they head into 2026.

1. Employee Leave Laws

State and local leave laws have expanded dramatically in recent years, and 2026 brings another wave of changes. Many states continue to introduce or amend paid sick leave (PSL) and paid family and medical leave (PFML) requirements, each with different rules around eligibility, qualifying reasons for leave, benefit amounts, and job protection.

Key trends include:

• More states are implementing statewide PSL and PFML programs

• Expanded definitions of “family member,” including designated persons

• Added qualifying reasons for leave, such as bereavement, blood donation, miscarriage, NICU stays, and school/childcare activities

• New protections for victims of hate crimes and military families

• Increasing overlap between FMLA and state PFML programs

Because state and local laws often differ and employers must follow whichever rule is most favorable to the employee, handbook updates are essential to maintaining compliance.

2. Pay Transparency

Pay transparency has become a rapidly growing employment law trend in the country. More states are requiring employers to disclose pay ranges in job postings, share salary information upon request, and establish consistent pay practices.

By the start of 2026, laws are in effect in over a dozen states, with more on the way. Requirements vary widely, so employers should:

• Review job postings for compliance

• Publish pay scales for internal and external roles

• Train hiring teams on compliance rules

• Ensure pay policies reflect the most current state and local laws

Let’s also not forget the many minimum wage increases taking effect on January 1, 2026. You can read more about those HERE. 

Even if your state isn’t currently covered, it’s wise to prepare now, as pay transparency requirements continue to expand nationwide, and proactive planning can help you stay ahead of the curve.

3. Captive Audience Bans

More and more states are now limiting an employer’s ability to require employees to attend meetings about political, religious, or union-related topics. These laws, often called “captive audience” bans, are expanding quickly, even though some are still being challenged in court.

Because the rules vary by state, employers should:

• Make it clear that attending any political, religious, or union-related meeting is voluntary

• Avoid covering these topics in mandatory meetings

• Keep up with legal updates and NLRB guidance

Updating your policy now can help prevent misunderstandings and reduce the risk of coercion complaints.

4. Increased Reverse Discrimination Claims

A 2025 U.S. Supreme Court decision changed how all workplace discrimination claims are handled. Now, everyone follows the same standard, and people no longer need to meet a higher burden of proof just because they’re part of a majority group. Because of this, we may see more discrimination claims filed by majority-group employees.

To reduce risk, employers should review:

• DEI policies and programs

• Equal employment opportunity statements

• Anti-discrimination and anti-harassment policies

• Training presentations and materials

Policies should clearly protect all employees, regardless of majority or minority status.

5. Religious Accommodations

With the EEOC prioritizing religious discrimination enforcement, employers should expect an increase in accommodation requests and related litigation. Under Title VII, employers must provide reasonable accommodations for sincerely held religious beliefs unless doing so causes undue hardship.

Employers should update policies to ensure:

• A clear process for requesting religious accommodations, such as days off and holidays

• Dress code and grooming standards allow for religious exceptions

• Anti-discrimination and anti-harassment policies explicitly include religion

• Managers understand legal requirements and how to handle requests

Many state laws may impose stricter standards, so multi-state employers must ensure compliance across all states in which they have employees.

6. AI Legislation

AI is transforming the hiring process, performance evaluations, and overall workplace operations, but it brings new legal risks. State and local governments are increasingly regulating AI use, especially where it may result in discrimination.

Recent laws include:

• California and Illinois bans on discriminatory AI tools

• Mandatory disclosures when employers use AI

• New limitations on AI deployment in Texas

• Colorado’s forthcoming AI Act governing employment decision-making

Because AI laws vary widely, employers should develop policies covering:

• How AI is used in hiring and employment decisions

• Notification and consent requirements

• Measures to prevent biased outcomes

Proactive policy development is key as federal legislation becomes more likely in 2026.

7. Workplace Violence Prevention

Workplace violence is on the rise, prompting more states to adopt stringent prevention laws. These requirements range from written safety plans to mandatory employee training and industry-specific protocols.

Examples include:

• California’s comprehensive workplace violence prevention law requiring a policy, log and training

• Illinois’ Workplace Violence Prevention Act and related healthcare-specific rules

• New York’s Retail Worker Safety Act

• Washington and Oregon’s expanded training requirements for isolated and healthcare workers

As laws and workplace expectations continue to shift, having clear, current policies helps protect your business while creating a better experience for your team.

If you ever need support keeping everything aligned and compliant, Rising Tide HR  is here to help advise leaders, draft policies and handbooks, and effectively communicate these changes to your organization!