HR Management & Compliance

4 Ways Your Employee Handbook Can Do More Harm Than Good

As we discussed yesterday, a well-written employee handbook offers a number of benefits for employers and employees alike. But there are times when your handbook can do more harm than good. Here are 4 common pitfalls to watch out for.

1. Long-term employment guaranteed. Phrases such as “you are now part of the XYZ company family” and you can expect to be employed “as long as you do a good job” have figured in several court cases. Some courts have interpreted these statements as creating a binding contract that prevented termination except in cases where the employer could demonstrate just cause.

2. Creating legal obligations. A promise in an employee handbook may obligate an employer to provide statutory benefits that it otherwise would not be required to provide.


101 must-have employee handbook policies, specifically for California employers and fully customizable to your needs.


In one 2008 case, Peters v. Gilead Sciences, Inc., the employee handbook stated that eligible employees were entitled to 12 weeks of leave under the FMLA. An employee who was replaced while on medical leave sued the employer, claiming that it violated the FMLA and that it should be bound by the handbook promises. The employer argued that it was not liable because it was exempt from the FMLA’s provisions.

The court disagreed, ruling instead that even though the employer was not covered by the FMLA, it still could be bound by the promises in the handbook, particularly when the employee relied on those promises in taking medical leave.

3. Procedures not followed. Some employees have fought dismissal or other disciplinary action by claiming that procedures in the handbook were not followed.

For instance, if the handbook sets out a three-step disciplinary process, an employee who did not receive this progressive discipline might challenge his or her termination on the grounds that the disciplinary process was promised, and if given the chance, he or she could have improved job performance or corrected inappropriate conduct.


All the policies you need, fully editable and customizable — your employee handbook is already complete!


4. Changes not recorded. Another potential problem arises when the handbook is not updated to conform to new rules or procedures. Employees might claim that they relied on the written policies in the handbook and did not know about the new or different rules.

Each of these potential problem areas can be addressed by including in the employee handbook a properly drafted at-will employment statement and a properly worded contract disclaimer, and by having employees sign an acknowledgment.

All the Policies You Need, in One Place

Whatever shape your employee handbook’s in, it could probably be better. More comprehensive. More clear. More helpful for communicating your rules and expectations clearly and keeping you out of a lawsuit.

An incomplete or incorrect handbook is more than just a nuisance. If it’s not drafted correctly, your handbook can actually lead you down the very path you’re hoping to avoid: The one that leads to the local courthouse.

Our brand-new HR Management & Compliance Report, the California Employee Handbook Template, includes 101 vital policies — written specifically for employers in California – including:

  • At-Will Employment
  • Employee Classifications
  • Social Media Code of Conduct
  • Right to Observe Employees
  • Voice Mail, Email, Electronic and Computer Files, and Usage
  • Appearance and Courtesy; Uniforms
  • Equal Employment Opportunity
  • Harassment Prohibited
  • Retaliation Prohibited
  • Bullying Prohibited
  • Accommodation of Disabilities
  • Zero Tolerance for Drugs or Alcohol in the Workplace
  • Terminations
  • Final Pay
  • Progressive Discipline
  • Rest Periods
  • Meal Periods
  • Overtime Pay, Authorization, and Mandatory Overtime
  • Payroll Deductions
  • Travel Time Pay
  • Bereavement Leave
  • COBRA Coverage for Health Insurance
  • And 79 more!

Click here for a full Table of Contents.

All of the policies are fully editable and customizable — when you order, you’ll get a link to editable Word versions of all 101 policies.

All of the policies in the California Employee Handbook Template have been drafted by an experienced California employment lawyer. Plus, we’ve provided practical information for every single policy on:

  • Which employers the policy applies to
  • Which employees the policy applies to
  • Whether the policy is required or optional
  • Special considerations

It’s like having a California employment lawyer on call, working on your handbook 24/7, at a fraction of the cost!

Best of all, we’ll send you a brand-new edition each year so that you always have the most up-to-date policies available. Don’t delay — order today and get your handbook up to date once and for all.

Download your free copy of 20 Must-Have Employee Handbook Policies today!

2 thoughts on “4 Ways Your Employee Handbook Can Do More Harm Than Good”

  1. Just wanted to highlight that this is a particularly valuable resource because we developed it *specifically* for CA employers–so you don’t need to worry about any of the policies not being compliant with CA law. I encourage you to check it out!

  2. Just wanted to highlight that this is a particularly valuable resource because we developed it *specifically* for CA employers–so you don’t need to worry about any of the policies not being compliant with CA law. I encourage you to check it out!

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