The landscape of labor law is changing faster than ever, and simply updating your handbook once a year is no longer enough to avoid regulatory fines. As we look ahead to 2026, HR Compliance is shifting from a yearly review to a constant risk management challenge.

Ignoring these three high-risk areas exposes your company to significant legal and financial liability:

Paid Time Off (PTO) Administration: Are you tracking and calculating leave time across state lines correctly? New municipal and state laws (sick leave, family leave, paid time off) often conflict, making accurate accrual and payout a major compliance trap.

Remote Work Policy Requirements: Your policy must evolve beyond “where you work.” It must address jurisdiction-specific tax withholding, expense reimbursement laws, and data security mandates for employees working in different states. An outdated remote policy is a lawsuit waiting to happen.

Termination Procedures & Exit Interviews: Are your termination documents and exit processes compliant with the latest anti-retaliation and severance regulations? Auditing this process ensures you are legally defensible and captures critical data to protect the company (as highlighted in our prior discussion).

Don’t wait for a federal or state audit to uncover your gaps. The best way to reduce labor costs, liability, and risk is to adopt a proactive Compliance Maintenance Plan.

Need a policy refresh? Cushion specializes in HR Compliance and Risk Mitigation, including comprehensive Human Resources Audits and keeping your policies current and compliant.

Let’s get your policies ready for 2026.