Employee Handbooks

Yes. Although not legally required, they may as well be for a variety of reasons.

First, there are policies, which vary based on your company’s size, location, and industry, which you need to communicate to employees. Doing this in one document, such as an employee handbook, is an efficient way to comply.

Second, try beating an unemployment claim without a defined policy. We know of one company who lost an unemployment claim for an employee who, with a company car and on company business, got in a high-speed chase with a police officer. Unemployment ruled in the employee’s favor because the employer did not have a policy stating that employees have to comply with laws while using company property. True story.

Third, and the list really can go on and on, an employee handbook facilitates compliance because policies are spelled out for everyone, so the propensity for variance and endless clarification are lessened.

This depends, as different federal and state regulations apply depending on your on your company’s size, location, and industry; however, most companies benefit from the following policies at a minimum.

• Employment-At-Will statement (applicable if you operate in an employment-at-will state), prominently positioned at the beginning of the handbook.
• Non-harassment/discrimination policy that includes a complaint procedure and no-retaliation clause.
• Company Property policy that includes email and internet usage and spells out that employees should have no reasonable expectation of privacy when using company property.
• Workplace Violence policy defining policy in the workplace (threats, weapon, fighting, etc.) and stipulating the company has zero tolerance.
• Drug and Alcohol policy that includes a clause about prescription drug misuse and explains consequences for violating policy.
• Conduct Standards that define your expectations for employees to comply with company policies and federal, state and local laws.

The best practice is to update your employee handbook annually. However, if you have a lot of changes, have entered into different states, or significantly changed your headcount, you may want to update sooner.

We conduct a roll-out of the handbook to all employees, briefly explain the policies, and answer any questions employees may have. We also have them sign an acknowledgment, stating that they have read and understood the handbook, which we keep in their personnel files.

Yes, they should sign off on it, so you have proof that they received it. It’s amazing how many times we hear, “No one ever told me I have to get approval for time off!” And we respond, “Ahh, yes, we did, actually, on this date. See here, where you signed off that you received and understood the policies.”