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2025 Handbook Updates: Navigating New Employment Laws

January 19, 2025

As we enter a new year and as should be done at least once a year, HR professionals should be reviewing their employee handbooks and policies to ensure they remain up to date and legally compliant. Over the past four years the Democrat administration in Washington and here in Michigan passed new employment and labor laws and published new regulations reflecting a more pro-worker focus. Going forward the new Republican administration and Congress in Washington will no doubt put out different regulations and perhaps some laws reflecting a more pro-employer position.

Looking out long term, it has been suggested by other prognosticators on employment policy that  HR professionals might think of having a “Red” employee handbook for times when a there is  pro-business policy administration in office and a “Blue” employee handbook for times when there is a pro-labor administration in office so when political parties change in Washington employers can just pull out the appropriate employee handbook to use.

What should employers be watching for going forward?
  • As the National Labor Relations Board (NLRB) switches over to a more a more employer-friendly Administration if the Trump Administration follows through, watch for new Board rulings that may overturn or change the Board’s current labor friendly rulings. One such ruling that caused employers to gut or change many long-standing employment rules was the Stericycle, Inc. decision. This ruling forced changes to many handbook policies on employee communications with one another. This decision held any rule/policy that could arguably be interpreted as restricting employees discussing wages, hours, benefits, and/or working conditions would be deemed as illegal unfair labor practices potentially subjecting the employer to a remedial order from the NLRB. Other employer long standing rules/policies that were challenged and forced to be removed or significantly altered were confidentiality and non-disparagement provisions as well as non-solicitation rules to name a few.

It is hoped that the NRLB will re-adopt a ruling known previously known as the Boeing rule that sought to balance the employer’s business need for the particular rule/policy against the rights of employees to engage in “protected concerted activity” Given the process the NLRB uses to change its enforcement positions this changeover may take some time. Stay tuned.

  • Because of Michigan’s failed “adopt and amend” approach to legislation as well as the Michigan Supreme Court’s decision to overturn adopt and amend, employers will now have to develop a new paid time off (PTO) policy to bring their PTO policies into line with the Earned Sick Time-off Act (ESTA). ASE has been assisting many of its members as they change their various PTO policies to meet the requirements of ESTA. Currently this new policy needs to be in place by February 21, 2025.

ASE members are encouraged to go to our ESTA FAQ webpage for more compliance information and resources. But be on notice, as we started this month with a new Michigan Legislative session, amendments to the ESTA law are in the offing. So again, stay tuned.

  • With the myriad of state law changes if you are a multi-state employer, another area employer handbooks should be reviewed is what new laws are being passed in many other state’s your organization is doing business in. Many states are currently passing new Paid Time Off/Sick Time, Paid Family and Medical Leave, as well as other time off laws that may require or at least compel an employer to change their policies. To keep up with these other state law changes, ASE has two online libraries that provide state-by-state employment and labor law information to provide easy research to those law and regulation changes. ASE members can access these libraries by logging into the Member Dashboard.
  • For those employers that do business in other states, keep an eye on new equal employment opportunity and harassment discrimination and retaliation policy and practice requirements.

Last year the Equal Employment Opportunity Commission (EEOC) expanded its anti-Harassment guidance to formally state “other forms of harassment” other than sex is also protected by the law. Because of this, at the very least, employer handbook policies should modify their policy statement to include examples of “other forms of harassment” to identify what they are.

  • Keep an eye on workplace safety and anti-violence laws that are being enacted on both sides of the country. Those laws also may require that specific training be implemented as well (California, Maryland and New York).
  • Two relatively new federal laws that require new policies are the Pregnant Workers Fairness Act (PWFA) and the Providing Urgent Maternal Protections for Nursing Mothers Act (PUMP). These two laws compel employers to add handbook policies addressing the protections and compliance requirements employers must provide and what protections those employees are given under these laws.
  • Employers should consider adding a remote work policy to their employee handbook that clearly outlines expectations for employees working from home, whether full-time or on a hybrid schedule. This policy should specify when employees are permitted to work remotely and when they are required to be in the office.
  • Another policy to consider is one on Communicable Disease. Though not required, after everyone’s recent experience with COVID and the prognostication we will be experiencing contagions more often in the future, it may make sense to adopt a policy that tells employees how the employer will proceed when a new serious illness come around. Hint: most policies state they will follow Center for Disease Control recommendations. ASE members can access the Contagious Diseases and Pandemic Toolkit on the ASE Member Dashboard.

ASE will continue to monitor, report on, and recommend employer policies and best practices as new laws and regulations ensue. Keep an eye on ASE’s weekly EPTW newsletter as well as special notices and webinars when breaking new compliance requirements come out.

If you would like a  separate set of eyes on your handbook to provide a more thorough review with feedback on missing or incomplete policy statements please contact Michael Burns at mburns@aseonline.org or Emily Price at eprice@aseonline.org for information on ASE’s employee handbook review and update service.

 

Sources:

Handbook Season Arrives with a Flurry of Potential Policy Updates, Jill Lowell, Amy Mendenhall, and Erin Winters (12/5/2024)

Ring int the New Year with an Updated Employee Handbook, Kasey Cappellano, Meaghan Gandy and Laurel Stoncius (12/16/2024)

 

By Michael Burns, courtesy of SBAM-approved partner, ASE.

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