Safeguard Your 2026 Earnings
Employment policies aren't just a compliance formality; they're a structural cost control tool. Outdated or unclear language turns wage-and-hour, discrimination, and leave exposures into unrecorded liabilities that eventually surface as legal fees, settlements, premium hikes, or leadership distractions.
Why it Matters for Finance
- Every policy gap is an accrual delay. A handbook that hasn't caught up with state or federal rules functions like an unfunded reserve. Exposure exists, but isn't recognized until a claim or agency action forces the expense.
- In Michigan, EEOC charges and paid leave enforcement are both trending upward; industry analyses suggest U.S. employers face roughly a 1 in 10 annual likelihood of an employment-related claim.
- A proactive policy governance process reduces loss volatility, strengthens internal decision making and accountability, and gives leadership clearer visibility into emerging workforce risks.
Practical Controls and Cost Levers
Policy governance is now a component of financial risk management. The objective isn't simply to refresh a handbook; it's to demonstrate that the workforce is identified, measured, and controlled, lowering volatility and preserving earnings. Some priority areas to address include the following:
- Annual Review Cadence - set up an annual, structured review led by HR-Legal-Finance. Translate key risks into estimated dollar impact rather than just policy counts, and track completion as part of your internal control framework.
- Michigan Leave Policies - Align sick and leave language with current state definitions to avoid wage-and-hour penalties. The cost of a policy update and manager refresher is typically less than one percent of the average single-claim defense cost.
- AI in HR - Michigan's emerging AI rules make algorithmic tools a compliance variable. Add a standard for vendor contracts, notice documentation, and bias testing. These steps help protect your investment in the tools and reduce the risk of costly investigations, disputes, or system redesigns.
- Workplace Safety and Violence Prevention - Even without federal regulation, a well-documented Michigan-specific plan reduces the severity and duration of post-incident claims, often improving workers' compensation and liability program performance.
- DEI and Discrimination Governance - Reassess policies and promotion language around equal opportunity and measurable inclusion outcomes. Transparent criteria and documentation improve defense postures and response timing, reducing legal expense ratios.
- Religious Accommodation - Federal religious accommodation standards apply to most Michigan employers with 15+ employees, and enforcement is increasing. Update policies and manager guidance to meet current EEOC expectations. Routine training costs a fraction of the potential claim burden and signals compliance maturity to insurers and auditors.
Protect 2026 Earnings
- The core question for leadership is no longer “Do we have a handbook?” but “Are our policies current, defensible, and enforced consistently?
- Regular policy reviews convert low-visibility compliance risk into a managed business process, with predictable cost and reduced volatility.
Integrate Policy Review with Insurance Strategy
Aligning updated employment policies with management liability, EPLI, fiduciary, cyber/AI, and workplace violence coverage can shift financial exposure off your balance sheet and strengthen insurer confidence.
Next Steps
A short, no-obligation review can help determine whether your employment policies and insurance programs are aligned with today's regulatory and loss environment.
Protect 2026 Earnings
Reduce Workforce Risk Before it Shows up as a Claim
Contact Team Koppinger to Help Close Risk Gaps