When should a company consider updating its employee handbook?

A company should consider updating its employee handbook at least every few years or as needed due to several important factors that influence workplace policies and legal compliance. First, regular updates ensure that the handbook reflects current workplace practices, organizational changes, and employee expectations, which can evolve over time. This is crucial for maintaining clarity and consistency in employee relations.

Additionally, even if there are no new laws enacted, internal changes—such as implementing new technology, shifts in company culture, or the introduction of new benefits—may warrant a revision to ensure that policies align with the current state of the organization.

While changes in federal laws are also a critical trigger for updates, the approach of updating the handbook at least every few years inherently encompasses legal compliance. Since laws can change periodically and can impact various aspects of employment, an ongoing review ensures that the handbook remains relevant. By planning updates systematically rather than waiting for specific triggers, such as federal law changes or the hiring of new employees, a company can proactively manage its policies and mitigate potential legal risks.