If you’re like many California employers, your employee handbook contains a statement that employment is at-will, meaning that employees can be fired for any reason or no reason at all, providing the termination does not violate state or federal law. But have you checked your handbook to be sure it doesn’t contain provisions that undermine the at-will relationship? Here are some points to consider:
- Discipline. Eliminate statements that you will follow disciplinary procedures in all cases.
- Discharge. Eliminate statements that you will fire employees only for certain wrongdoing.
- Specific references to time. Eliminate references to specific times, such as: Employees will have an annual review, there will be an annual raise, there will be an annual bonus, your annual salary will be $___, and the like. Substitute words such as “periodic,” “as warranted,” and “as needed.”
- Policy changes. Include a prominent statement that the handbook is not a contract and that you, as the employer, have the right to change any of the provisions in the manual at any time.
- Policy exceptions. In the policy manual, designate an authorized person to make exceptions to your policies in writing.
- Consistency. Make sure that your application forms, handbooks, and everything else comply with your policy of at-will employment. However, don’t go overboard, as that could intimidate employees.
- Acknowledgment. Have employees sign a statement acknowledging that they have read the handbook and understand that their employment is at will.
400+ pages of state-specific, easy-read reference materials at your fingertips—fully updated! Check out the Guide to Employment Law for California Employers and get up to speed on everything you need to know.
Additional Resources: