Risk & Business Magazine Spectrum Insurance - Spring 2023 | Page 30

EMPLOYMENT POLICIES

5 Employment Policies To Review In 2023

Employee handbooks are important tools for establishing employee expectations , addressing workplace issues , and defending against potential lawsuits . Failing to update employee handbooks regularly can make employers vulnerable to legal risks and liabilities , resulting in costly fines , penalties , and attorneys ’ fees . Employment laws are often complicated , and employers need to be aware of any new regulatory developments that may impact their organizations and workforce . The start of the year provides employers an excellent opportunity to review and update the policies in their employee handbooks . This article explores five employment policies employers should consider reviewing in 2023 .

1 . PAY TRANSPARENCY
More employees are demanding pay transparency as a result of changing labor markets and workforce demographics . Pay transparency is when an employer openly communicates pay-related information to prospective and current employees through established practices . With demands for pay transparency increasing , some states have passed legislation in recent years requiring employers to be transparent . California , Colorado , Connecticut , Maryland , Nevada , Rhode Island , and Washington have passed pay transparency laws . Some cities — including New York City , Jersey City and Cincinnati — have also passed such laws .
As applicable laws and regulations related to pay transparency vary based on jurisdiction , employers must consider their legal obligations . This involves any jurisdiction where their employees physically work . Some jurisdictions ’ laws only require employers to provide pay ranges if the candidate requests it ; others , like California ’ s recently enacted pay transparency law , require employers to disclose this information up front .
Even if an employer is in a jurisdiction that does not require pay transparency , it may be beneficial to provide pay-related information since employees and applicants are more frequently demanding it . To meet employee desires , employers should consider implementing practices — such as publishing
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