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Safeguarding Your Workforce: Essential Resources for Managing Employment-Related Risks
Companies of all sizes need to take steps to safeguard their workforces. By protecting their employees, companies can also protect themselves—and this can help foster a culture of compliance that supports productivity, retention and long-term growth.
7 Key Resources for Managing Employment-Related Risks in 2025
With this in mind, what does it take for companies to effectively manage their employment-related risks in 2025? Here are seven key resources that all companies can (and should) use to their advantage:
1. Up-to-Date Employment Policies and Procedures
All companies need to have employment policies and procedures, and they need to ensure that their policies and procedures are up-to-date with the most-recent developments. This includes the many developments under the various executive orders that President Trump issued during his first two weeks back in the Oval Office.
We are expecting more significant developments in the coming months as well, and this is going to make it especially important for companies to take a proactive approach to employment-related compliance going forward. Companies (and their counsel) should structure their employment policies and procedures with this in mind—taking a comprehensive approach while also building in the flexibility to implement changes as needed.
2. Human Resources (HR) Handbooks
Companies’ human resources (HR) handbooks should contain policies and procedures that are specific to the recruiting, hiring, promotion and termination phases of employment. HR handbooks should also address topics such as harassment, discrimination and other improper practices. In light of President Trump’s January 21, 2025 executive order addressing diversity, equity and inclusion (DEI) initiatives in the private sector, companies that currently have DEI initiatives in place will need to carefully consider the executive order’s implications for these aspects of their HR operations as well.
3. Training Programs and Documentation
While adopting up-to-date employment policies and procedures is essential, it is not sufficient on its own. Companies must also ensure that their employees are familiar with these policies and procedures and understand their specific role in helping to mitigate the company’s risk.
To this end, training programs are essential as well. Companies should develop and implement training programs that are custom-tailored not only to their internal policies and procedures, but also to employees’ specific roles at different levels of the organization. Documenting employees’ completion of these training programs will also be an important step for mitigating the company’s risk in the event of a claim based on the conduct of an individual contributor, manager, supervisor or executive.
4. Employment Contracts and NDAs
While most employees at most companies are employed on an at-will basis, employment contracts can be essential resources for engaging high-level personnel and skilled individuals in certain occupations. Similar to employment policies and procedures, employment contracts must also be clear, comprehensive and custom-tailored, and employers must ensure that their employment contracts comply with applicable law (i.e., any restrictions on non-competition covenants and mandatory arbitration clauses).
Non-disclosure agreements (NDAs) can also be essential resources for protecting companies’ sensitive and proprietary information. At-will employees can generally be required to sign an NDA as a condition of their employment, and requiring at-will employees to sign NDAs can be a key risk mitigation strategy during merger talks and in various other circumstances.
5. Employee Claim Reporting and Processing Procedures
Even with safeguards in place, companies still can—and inevitably will—face workplace claims from their employees. This includes claims not only alleging harassment, discrimination and other improper practices, but claims for work-related injuries and illnesses as well.
Acknowledging this reality, companies should have clear claim reporting and processing procedures in place. All personnel should have access to the information and forms they need to file claims; and, once a claim is received, this should trigger a series of documented steps in response. A prompt and thorough investigation is critical; and, once the investigation has been completed, the company’s leadership should be prepared to quickly make a decision about next steps (with the advice of the company’s legal counsel).
6. Employment Practices Liability (EPL) Insurance Coverage
Employment practices liability (EPL) insurance coverage is another essential resource for managing employment-related risks. While taking the steps discussed above can help ensure that companies are prepared to defend against workplace claims when they arise, they may still need to rely on their EPL insurance coverage in some circumstances. When relying on insurance coverage, being able to affirmatively demonstrate that the company has implemented effective compliance and risk management protocols can be essential for avoiding coverage disputes and the potential for direct liability.
7. A Top-Down Commitment to Compliance
Effectively managing employment-related risks requires a top-down commitment to compliance. The company’s executives should lead by example, and they should make clear that employment-related compliance is a priority on a company-wide scale. If employees see that the company’s executives are doing more than just paying lip service to respecting their rights and fostering a positive work environment, this can go a long way toward convincing employees to respect their coworkers and prioritize the company’s interests as well.
How Do You Get Started?
We’ve covered a lot. If you have concerns about your company’s current efforts to manage its employment-related risks (or lack thereof), where should you start?
If your company currently has employment policies and procedures, HR handbooks, and training programs in place, reviewing these will be the first step. Are they serving their intended purpose? Are they up to date? These will be critical questions to answer.
If you are starting from the beginning, you will need to engage an experienced employment lawyer who can guide your company through the process of putting the necessary policies, procedures and protocols in place. As we discussed above, a custom-tailored approach is essential, and company leaders must be confident that their efforts are sufficient to effectively manage their company’s risk on an ongoing basis.
Speak with an Employment Lawyer at Rendigs
If you have questions about managing your company’s employment-related risks in 2025, we invite you to get in touch. Call 513-381-9200 or contact us online to schedule a call with an employment lawyer at Rendigs today.
