Performance Reviews: US

This Performance Reviews policy is a best practice that helps your organization set clear expectations for how feedback, goal-setting, and evaluations work, even though there isn't a single federal law that requires a written performance review policy. A consistent review cadence and a documented process can support fair, job-related decision-making, reduce confusion about raises and promotions, and help managers give timely coaching, while still leaving room for flexibility across teams and jurisdictions.

The History Behind Performance Reviews Policies in US

Performance reviews became a standard management practice as employers tried to make decisions about Job Performance in a way that was consistent, documented, and defensible. Early personnel systems in large U.S. employers grew out of post-World War II expansion, when organizations needed repeatable ways to set expectations, compare roles, and decide pay and promotions at scale. By the 1970s, performance documentation started to matter a lot more because federal equal employment laws put real pressure on employers to explain why one person got an opportunity and another did not.

Title VII of the Civil Rights Act of 1964 and later laws like the ADEA (1967) and the ADA (1990) did not require performance reviews by name, but they made the quality of your records count. Courts also pushed employers toward structured evaluation systems when performance criteria affected hiring, promotion, and pay decisions. The Supreme Court's decision in Griggs v. Duke Power Co. (1971) validated disparate impact claims and put a spotlight on employment practices that screened people out without a job-related basis. Later, cases like McDonnell Douglas Corp. v. Green (1973) shaped the burden-shifting framework that still drives discrimination litigation, and that framework rewards employers who can point to documented-when-it-happened job-related performance evidence instead of after-the-fact explanations.

Employer practice also shifted as HR moved from paper files to HRIS platforms and as pay-for-performance programs spread in the 1980s and 1990s. Managers started to rely on written goals, ratings, and calibration meetings because executives wanted comparability across teams and because lawyers wanted fewer surprises in termination and promotion disputes. Remote work, multi-state workforces, and SOC 2 audit requirements added additional nudges toward regular, documented check-ins.

Which Law is this Performance Reviews Policy Meant to Comply With?

There's no federal law that specifically requires a Performance Reviews policy for US-based employees. We include this policy anyway because it's either (1) a common best practice that answers employee FAQs and sets clear expectations, or (2) a topic that is regulated in many states, so employers often use one company-wide policy that meets or exceeds the toughest state requirements.

How to Write a US-Specific Performance Reviews Policy

• Start with "why" and introduce the concept.
• Set an expectation for recurring performance reviews as a structured way to reflect on performance and development.
• Encourage ongoing, open feedback outside of formal review cycles.
• Include employee self-assessment and forward-looking goal setting as part of the process.
• Include a one-on-one review conversation to discuss progress, wins, and improvement areas.
• Clarify that performance reviews do not promise compensation changes, promotions, or continued employment.
• Provide a clear point of contact for questions about the review process.

When to Include this Policy in Your Employee Handbook

The law does not require you to publish a policy or issue a specific notice. That said, you still have to comply with the requirements that apply to you as an employer. 

You can comply without putting this in your handbook or otherwise publishing it to employees, but including it usually pays off. A short policy helps employees find answers without a ticket to HR, and it helps supervisors handle situations the same way across teams. If you're intentionally keeping your handbook lean, this can live in another easy-to-find policy hub, but make sure employees can actually access it and managers know where to point people. 

Other Considerations

None.

Exceptions

None.