Is my company legally required to have an employee handbook?

There is no law requiring a company to provide an employee handbook to its workforce. However, there are numerous benefits to doing so.

Does the employee handbook have to be customized for my company?

There is no one-size-fits-all employee handbook. The employee handbook must be customized to the company’s business practices, industry, and size of its workforce. The employee handbook should be prepared with a focus on accomplishing three main objectives: (1) clear communication with employees, (2) administrative efficiency, and (3) prevention of litigation. A poorly drafted employee handbook that follows a “cookie-cutter” approach or blindly borrows policies from another company’s handbook (which may differ from the employer’s practices), or contains lawsuit-provoking buzzwords, confusing or contradictory language or unnecessary verbiage, limits the flexibility in addressing personnel issues and may leave the company susceptible to litigation.

Should managers and supervisors be trained on the policies in an employee handbook?

The objective is to maintain an employee handbook that establishes guidelines for managers and supervisors to follow with less risk of costly and embarrassing mistakes, and less exposure to liability. This will also assist the employer in promoting a work environment that is more orderly, which will enhance employee performance and morale. Clearly worded policies allow management to manage employees’ expectations effectively and to address personnel issues in a consistent and fair manner when they arise. This is the hallmark of good employee relations. Clearly worded policies also significantly reduce administrative efforts as well as the associated costs (both financial and business interruption) incurred when addressing personnel issues. To that end, management decisions will be more predictable and less likely to be arbitrary, which promotes a greater sense of security and stability among employees. As a result, management will become more effective at all levels.

In order for the employee handbook to be an effective tool for the company, all managers and supervisors must be trained on the policies and procedures in the employee handbook, especially the policies addressing: anti-harassment and discrimination, workplace accommodations and anti-disability discrimination, whistleblower protection, and leave of absence policies.

How often should my company review and update the employee handbook?

The handbook must be regularly reviewed and updated as necessary to reflect changes in state and federal laws, as well as the company’s business and employment practices. An annual review is recommended, or at least every two years. If significant changes are made to the handbook, the company is well-served to distribute the updated handbook and obtain a signed acknowledgement of receipt from each employee, collect the prior version of the handbook, and meet with all employees, managers, and supervisors to identify the changes and provide training.

Connell Foley’s employment law attorneys work closely with businesses of all sizes to draft employee handbooks and train employees, managers, and supervisors on the policies. We also review and update existing employee handbooks to ensure compliance with federal, state, and local employment laws. Please contact us if we can provide your company a hand with its employee handbook.