Employee handbooks are an essential tool in managing employee relations and therefore successfully operating your business. An up-to-date, well-written handbook gives your employees clear guidelines of how you want your business to run.
What is an employee handbook? An employee handbook is a guide that has essential legal and regulatory information and company policies – with the company’s employees as its intended audience. Policies should be written in concise, straightforward language and be laid out in a logical, user-friendly way. Along with relevant employment laws and regulations, the handbook should provide an employee with up-to-date information on workplace culture, benefits and compensation. A handbook is legally binding so make sure it says what you need it to and that you have each policy reviewed by legal counsel.
Handbooks are also an important resource for supervisors and managers to rely on when setting expectations and managing performance. Because of this, they should be detailed and comprehensive, but also flexible enough to allow managers and supervisors some discretion when managing employees. For example, while a statement about normal working hours is important to include, such as “Normal hours of operation are from 8:30 am to 5:00 pm,” a statement such as “Each employee’s work schedule will be set by his/her supervisor” gives managers the flexibility they need to manage their distinct work unit.
What types of companies need to have an employee handbook? Any company that has at least one employee is subject to an array of federal laws. So if you have employees – even just one – you need a handbook. While your company’s industry, location and number of employees will impact its content, you need to develop and implement an employee handbook that communicates the policies and laws that your employees are protected by and need to follow.
What should be included in an employee handbook? The contents of an employee handbook can range from very basic to lengthy and extensive depending on your company’s structure and the purpose for your handbook. At a minimum, your handbook needs to include certain federal, state and local employment laws and regulations to ensure your employees are aware of their rights and responsibilities. Examples of these policies include, but are not limited to, employment-at-will, non-discrimination, non-harassment, equal employment, safety regulations and wage payment, attendance, absenteeism, conduct, discipline, termination, performance evaluations, leaves of absence, travel, nepotism, internet & email usage, media relations, social media, uniforms and voting.
Policies covering non-solicitation and confidentiality are also important but are often separate from the handbook and need to be carefully worded so as to not violate NLRB standards (even if the company does not have unionized employees).
How do I get an employee handbook? We do NOT recommend that you download a handbook off of the internet or borrow one from a friend. Remember, handbooks are legal documents and any courts will require that you meet the obligations that are outlined in the document. Online templates are notoriously wrong, outdated and not state specific, and copying another company’s handbook carries the same risks and can obligate you to laws and practices that do not pertain to your industry or company size. The first place to check for relevant information is your state Department of Labor website, which will have the most up to date information. Alternatively, you can hire a legal or HR advisor to help you draft it.
What other things do I need to consider regarding our employee handbook? Make sure all of your employees have access to the handbook whenever and wherever they need it. In some places, electronic versions are appropriate. In others, a hard-copy handbook distributed to each employee may be the best option.
Have employees sign an acknowledgement form stating they received the handbook, have had a chance to read it and agree that it does not constitute an implied contract of guaranteed employment. This will give you some protection if you have to take action against an employee. And as with any employment form, if an employee refuses to sign the acknowledgment, have another person sign the form stating they witnessed the employee receiving the handbook.
We recommend an annual or biennial review of your handbook to capture legal changes and/or changes to your workplace such as your size or location. Finally, the handbook needs to clearly state that management/ownership reserves the right to change and alter the handbook and its policies without notice and at any time.
While handbooks can seem like a lot of work, they can provide you with essential protection and guidance. Dedicating the time and effort now to make sure the policies are legal and describe how you want to run your business will pay off well in the long-run.
By Paige McAllister, SPHR, Contributor – Affinity HR Group, LLC
