Why You Need an Employee Handbook for Your Business

An Employee Handbook is typically put in place to protect employers and employees, by informing employees of their employer’s personnel policies that cover all key areas of hiring, employment, discipline, and termination, and of employees’ rights under applicable federal, state, and local laws. This is often provided to new employees upon hire, and the employee’s signature and acknowledgment of receipt is requested. However, it is important for employers to keep their Employee Handbook updated so that it always complies with applicable laws.

While the content of an Employee Handbook typically varies depending on the industry, workplace, practices, and culture of each employer, it is good practice that the following policies and rules be included:

• Policies and procedures for discrimination, harassment, and retaliation
• Policies and procedures for disabilities and reasonable accommodations
• Rules for attendance, time records, vacation, sick leave, and other leaves
• Information on employee classifications, wages, payroll, and benefits
• Policies on workplace health and safety
• Policies on employee performance and conduct, evaluations, employee records, discipline, and termination

A few important points to include and/or consider are:

1. Notice of ‘employment at-will’: This should be conspicuously noted in the Employee Handbook to give notice to employees that their employment can be terminated by employer or by them at any time, and for any reason
2. Notice of amendments to Employee Handbook: As previously noted, the Employee Handbook should be reviewed at regular intervals, to ensure it complies with applicable laws. Therefore the employer should include a notice reserving the right to amend the Employee Handbook and specifying when such amendments will be deemed effective and how they will be notified to employees
3. Employer rights, obligations, and commitments: employers should carefully draft and review the Employee Handbook to ensure that they are able and willing to comply with any employer obligations it contains. It is always best to reserve rights and to avoid creating firm obligations in this context.
4. Multi-state hiring: if the employer intends to distribute the Employee Handbook to employees across different states, the employer must draft different versions of the Employee Handbook for each state, or alternatively, draft a core document and supplement it with an appropriate state annex for the relevant state, so that the final Employee Handbook each employee receives is compliant with all applicable state laws and regulations

It is therefore important to have an Employee Handbook and to keep it updated at all times, given the constant change of labor and employment laws. An Employee Handbook is also a clear and efficient way to communicate certain workplace policies to employees, and to give employees the chance to familiarize themselves with the processes, values, and culture of your business.

It is essential to have an employment attorney assist with drafting or reviewing your Employee Handbook to avoid common mistakes and to ensure compliance with the legal requirements discussed above.