Tips for Effective Employee Handbook Drafting

An employee handbook tells workers what they’re getting, instills a team spirit, and lets people know what the rules are, says attorney Peter Panken of Epstein Becker & Green, PC.

It should emphasize the employer’s fair treatment and how it provides significant benefits like vacations, holidays, health insurance, and retirement benefits. It lets the workers know they can grieve to get fair treatment. At the same time, it provides statutorily required notices of what the employees are entitled to and what their responsibilities are.

Employers must carefully draft their employee handbook not only to (1) communicate their kind intentions and (2) make employees aware of the benefits to which they’re entitled but also to (3) use as a management tool to communicate the ground rules.

Don’t Overpromise

When employees know what they’re entitled to and receive it as expected, they are less likely to go to outsiders (labor unions, government agencies, or lawyers). When employees know what is expected of them, employers are more likely to win lawsuits over firing or discipline.

But be careful not to promise too much. Promises can hinder an employer’s ability to terminate employees who break the rules.

We always suggest that the employee handbook start with what the employees are entitled to, include statutorily required notices (e.g., no discrimination), and discuss the work rules and employee obligations at the end.

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Tell Employees What They Get

As a starting point, your employee handbook should spell out exactly what employees are entitled to, such as:

• when and how they are paid;
• who is entitled to overtime;
• paid time off: sick pay, holidays, personal days, vacations, jury duty, and bereavement and Family and Medical Leave Act (FMLA) leave; and
• who is eligible for benefit plans like health insurance, life insurance, and retirement plans. (Caveat: Employers are required to provide benefit summary plan descriptions, so don’t spell out the details in your employee handbook. Just state when employees are eligible to participate.)

Equal Opportunity Assurances

Next, you must make certain assurances to your employees:

• Assure employees about your compliance with equal employment laws and that you don’t discriminate on the basis of characteristics protected by California and federal law, including race, sex, religion, national origin, disability, age (over 40), citizenship, and sexual orientation.
• Tell employees that you have a procedure for redress if complaints are made, and emphasize that you won’t tolerate retaliation for raising the issue.

Employee Work Rules

Work rules should be spelled out and general in tone in your employee handbook. Be sure to include the following:

1. improperly treating, fighting with, or servicing a fellow employee, customer, or any other nonemployee;
2. insubordination or lack of cooperation;
3. failing to follow company job instructions or to perform work requested by a supervisor or manager;
4. failing to meet a company measure of efficiency and productivity;
5. improper phone use on company time;
6. excessive lateness or absenteeism;
7. abusing, wasting, or stealing company or personal property;
8. removing company property or records without written authorization;
9. falsifying company documents;
10. violating the law while on company business or premises;
11. unauthorized possession of firearms, weapons, or dangerous substances while performing job duties or on company premises;
12. reporting to work in a condition unfit to perform their duties, including reporting to work with measurable amounts of illegal drugs or controlled substances in their system or being under the influence of alcohol or drugs or controlled substances;
13. consuming or selling alcohol, illegal drugs, or controlled substances on company premises or while performing their job duties;
14. violating a company safety rule or practice, or creating or contributing to unhealthful or unsanitary conditions;
15. acting in conflict with the interests of the company;
16. disclosing confidential company information without authorization; and
17. most importantly, failing to fully cooperate in any company investigation.

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Employers also should include a no-solicitation rule that doesn’t violate the National Labor Relations Act (NLRA) by discriminating against employees who form, join, and assist labor unions.

In addition, employers can defeat employee privacy expectations with this language: “If you want it private, don’t bring it to work.” But most important of all is your employment-at-will statement: “Your employment is for no fixed term, and you or the company can terminate your employment at any time for any reason not contrary to law.”

Finally, spell out your right to alter and amend the employee handbook, and don’t forget to include a grievance procedure.

Tomorrow, we’ll take a more in-depth look at your grievance procedure. We’ll also explain how you can instantly download 101 employee handbook policies specifically written for California employers.

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