Rewriting the Rules: 2026 Employee Handbook Updates Under the OBBB Act

If there's ever a time to rethink your handbook, it's now. The timelines have less to do with the year 2026 — the obvious time to roll out a replacement handbook — and more to do with the wave of changes that have recently swept the workplace due to the change in administration and their updated policies, including the One Big Beautiful Bill (OBBB) Act.

The OBBB Act, signed into law on July 4, 2025, impacts employee benefits and payroll administration. You should update your employee handbook to address the following changes:

Tip and Overtime Tax Deductions:
For tax years 2025 through 2028, the OBBB Act introduces new, temporary federal tax deductions for eligible employees.

• Tip Deduction: Employees in customarily tipped occupations can deduct up to $25,000 in qualifying tips from their federal taxable income.
• Overtime Deduction: Employees can deduct up to $12,500 of qualified overtime premium pay from their federal taxable income ($25,000 for joint filers).
• Employer Reporting: Employers must update payroll systems to separately track and report both qualified tip and overtime pay on employee Form W-2s. Your handbook should clearly explain that these earnings are still subject to Social Security, Medicare, and state taxes.
  

Beyond the OBBB Act, you should also consider other updates for 2025:

• Remote and Hybrid Work Policies: Formally document expectations for working hours, communication, equipment use, and security for remote and hybrid employees.
• Artificial Intelligence (AI): Establish clear guidelines for using AI in the workplace, including which tools are approved and for which tasks.
• Updated Paid Leave Laws: Check your local and state laws, as many jurisdictions are implementing new requirements for paid sick and family leave. For example, California has introduced new sick leave provisions for 2025.
• Anti-Harassment and Inclusion: Ensure your anti-harassment and anti-discrimination policies reflect current legal guidance and include a clear, accessible reporting procedure. Using inclusive language throughout the handbook is also recommended.
• Employee Classification: Revisit rules on overtime exemptions, particularly in light of recent court rulings and increased salary thresholds. Some states also have their own minimum salary requirements.
  

Federal, state, and local regulations are now firmly in place — and regulatory agencies are ramping up audit focus for 2025 and beyond. For example, immigration enforcement requirements and various state and multi-state regulations are affecting which laws supersede federal regulations.

Workers’ new expectations may clash with employers’ old policies, especially those that restrict flexibility or fail to reflect both temporary and permanent changes in the workplace.

Why You Should Attend:

The OBBB Act is not the only change requiring updates to your employee handbook. Federal regulations are just one piece of the puzzle — many state regulations now supersede federal laws, as the rule offering the greatest benefit to employees prevails. Numerous states have introduced changes that impact both single-state and multi-state employers.

With the rise of remote work, compliance becomes even more complex. Are your policies ready for the 2026 Employee Handbook updates?

Areas Covered

• Learn, identify, and prepare for employee handbook violations.
• Understand which policies need to be added to your employee handbook now that the OBBB Act is law.
• Gain awareness of all new regulations impacting your company.
• Identify the most common employee handbook violations and how to mitigate them.
• Learn how the Department of Labor (DOL) and Equal Employment Opportunity Commission (EEOC) have adapted to the OBBB Act’s changes.
• Understand how to update regulations to remain compliant with employee handbook policies.
• Identify which regulatory agencies focus on specific regulations and how to mitigate related risks.
• Learn which policies could land your organization in trouble if not compliant.
• Discover the “must-have” policies for your employee handbook.
• Learn how AI will impact the workplace and what guardrails are needed to avoid discriminatory perceptions.
• Explore the impact of social media and potential penalties when employees speak negatively about their employer.
• Understand how managers and supervisors can serve as ambassadors of compliance — or as a liability.
• See how training can serve as your first line of defense in litigation.
  

Who Should Attend

• All Employers
• Business Owners
• Company Leadership
• Compliance Professionals
• Payroll Administrators
• HR Professionals
• Managers/Supervisors
• Small Business Owners