Top Policies Small Businesses Should Review in January

Below are the most common policies that often need updating for small employers:

1. Remote & Hybrid Work Policies

If your business allows remote work, make sure your policy clearly outlines:

• eligibility criteria
• expectations for availability
• equipment responsibilities
• cybersecurity and data protection requirements

2. Leave Policies

Small businesses often have inconsistent time-off practices. January is a great time to standardize your approach, including:

• vacation accrual and carryover rules
• sick leave policies
• leave request procedures
• blackout dates (if applicable)

Example: California

California employers should prepare for major leave law updates. AB 406 expands paid sick leave to cover jury duty, subpoenaed witness appearances, and additional crime victim-related court proceedings beginning January 1, 2026, while also clarifying enforcement authority for victim-protection claims. Additionally, SB 590 will expand Paid Family Leave benefits starting July 1, 2028, to include care for a “designated person” whose relationship is equivalent to family.

This is a clear example of why updating your handbook in January matters: new laws take effect each year, and failing to update your policy can create compliance risk and confusion among employees.

3. AI Policies

(NEW Addition)

With AI tools now commonly used in the workplace, it’s essential for small businesses to define expectations around:

• acceptable AI tools for work use
• handling confidential or proprietary information
• accuracy expectations and verification requirements
• ownership of AI-generated work
• restrictions on using AI for sensitive HR or legal matters

Example: Texas

With the increasing use of artificial intelligence tools in small business, it’s important for employers to set expectations around how AI can be used responsibly. In Texas, House Bill 149 underscores the need for ethical and nondiscriminatory use of AI by regulating certain AI systems and prohibiting uses that could lead to harm, bias, or unfair treatment. While the law focuses on preventing discrimination and unsafe AI deployment, having an internal AI policy helps businesses translate these broad principles into everyday practice!

A Simple Handbook Update Process for Small Businesses

Updating your handbook doesn’t need to be complicated. Start with a quick policy audit to identify outdated or missing policies, then align them with your current operations and confirm compliance with federal, state (including California), and local laws. Next, simplify the language so employees can easily understand expectations, and communicate the updates with a required acknowledgement. If you’d like support, contact us for a Handbook Audit to ensure your policies are accurate, compliant, and aligned with your business goals.