Feb 27, 2026
How Often Should You Update Your Employee Handbook?
Learn how often you should update your employee handbook, what triggers policy revisions, and how to stay compliant with changing employment laws.
Introduction
Many small businesses create an employee handbook once — and never revisit it.
That’s a mistake.
Employment laws change. Workplace structures change. Benefits change. Remote work policies evolve.
An outdated employee handbook can expose your business to compliance risks and internal confusion.
So how often should you update your employee handbook?
Let’s break it down.
The Short Answer
You should review your employee handbook:
At least once per year
Any time employment laws change
Whenever company policies change
When your business grows significantly
When moving to remote or hybrid work
Annual review is the baseline. Event-driven updates are equally important.
Why Annual Reviews Matter
Even if nothing major changes inside your company, state and federal laws frequently update.
Examples include:
Paid sick leave requirements
Family and medical leave expansions
Minimum wage adjustments
Harassment training mandates
Remote work tax implications
You may not always hear about these changes unless you actively monitor compliance updates.
An annual review ensures your handbook stays aligned.
Situations That Require Immediate Updates
You should update your handbook immediately if:
1. You Add or Change Benefits
Examples:
Introducing PTO policies
Changing healthcare eligibility
Adding remote stipends
Modifying bonus structures
Your handbook must reflect real company practice.
2. You Expand Into a New State
If you hire employees in another state, your handbook must account for:
That state’s leave laws
Wage regulations
Required policy disclosures
Multi-state employers often need state-specific addendums.
3. You Shift to Remote or Hybrid Work
Remote work policies should address:
Work hours
Equipment use
Data security
Expense reimbursement
Performance expectations
Many pre-2020 handbooks are missing remote policies entirely.
4. You Experience a Workplace Incident
If a workplace issue exposes policy gaps, that’s a sign your handbook needs refinement.
Common triggers:
Harassment complaints
Attendance disputes
Performance conflicts
Discipline inconsistencies
Clear policies reduce ambiguity.
What Happens If You Don’t Update It?
An outdated handbook can:
Contradict current law
Create unenforceable policies
Lead to inconsistent discipline
Weaken your legal position
Confuse employees
In some cases, outdated language can directly increase risk.
How to Manage Updates Properly
When updating your handbook:
Revise affected sections clearly
Maintain version control (include revision dates)
Redistribute to employees
Collect new acknowledgment forms
Documentation matters.
Best Practice: Treat Your Handbook as a Living Document
Your handbook should evolve as your company grows.
Think of it as:
A risk management tool
A communication framework
A policy foundation
Not a one-time task.
Final Thoughts
If you haven’t reviewed your handbook in over a year, now is the time.
Regular updates protect your business, clarify expectations, and ensure compliance.
If you want a structured way to generate and maintain an up-to-date employee handbook tailored to your state and company size, DraftHandbook simplifies the process and makes future revisions easy.
