by Ann Kontner
Even though it isn’t a state or federal law requirement, many employers have an employee handbook or at least a few written company policies. Exactly where do those policies come from? The answer to that question is easy—the HR department. But where does HR get the policies that govern the company? The answer to that question isn’t quite so simple. 
Employee policies can come from a multitude of sources, including style guides or boilerplate templates purchased online, but many times a policy is no more than an explanation of “that’s how we do things at this company.” While in many cases a company means no harm by not having a formal employee handbook, the lack of a formal set of documented personnel policies can potentially lead to costly litigation.
Purpose of handbooks
Employee handbooks can be a useful business tool when they’re developed correctly. They can:
- Describe the employer’s expectations of employees;
- Spell out work rules;
- Be used as a management tool for supervisors; and
- Provide the company with an “affirmative defense” to litigation should the need arise.
Handbooks can also provide a venue for you to inform your workers of company values, describe benefit plans, and provide day-to-day guidance like employee dress codes.
Employee handbook ‘must-haves’
Regardless of your company size, there are several policies you should develop and include in a handbook or, at a minimum, provide to all employees. They include:
- “At-will” disclaimer. A statement explaining to employees that employment isn’t guaranteed and the company can terminate their employment with or without cause at any time is vital. Most states have requirements about where and how the employment-at-will statement must be included in a handbook to keep the handbook from being interpreted as an employment contract.
- Equal employment opportunity (EEO) statement. You should craft a statement that outlines the company’s commitment to prohibiting all forms of discrimination against all categories of employees protected by law and reiterating that you will not discriminate in any employment-based decisions (e.g., hiring, training, or promotions).
- Antiharassment policy. Harassment policies are not just for sexual harassment anymore but should include all types of behavior that could cause an unproductive work environment. Also, your antiharassment policy should clearly spell out multiple avenues employees can use to report inappropriate behavior.
- Family and Medical Leave Act (FMLA) policy. Employers that have more than 50 employees are required under federal law to provide their FMLA policies to employees in writing, so what better place to put that policy than in the employee handbook?
- Fringe benefits. A summary of benefits should outline the basics of each benefit your company provides and describe the eligibility requirements.
- Computer and phone privacy. Your handbook should include a policy to inform employees of the company’s right to monitor calls and e-mails on employer-provided equipment. A good communications policy will eliminate any expectations of privacy.
- Acknowledgment form. Regardless of whether your handbook is electronic or a hard copy, it’s absolutely vital to get all employees to sign a statement saying they have received the handbook and understand they must abide by its policies.
General tips for developing a handbook
Here are a few things to remember as you draft your handbook:
- The employee handbook may be the first document a new employee receives from his employer; therefore, be mindful of the tone in which your handbook is written. Start off with a welcoming letter from the CEO or president rather than jumping right into the “employment-at-will” language.
- Employment policies should be written for their intended audience. Avoid using legal terms, company jargon, or acronyms that may not be understood by newly hired employees.
- Policies should be followed! Don’t just expect your employees to follow company policies—you should follow them as well. If you don’t follow your own written policies, your handbook may become persuasive evidence in future litigation against the company.
- Review your policy manual on a regular basis. Federal regulations change often, and it’s vital that handbooks remain up to date and compliant with the law. Also, it isn’t a bad idea to send out an annual reminder to employees to review the policy manual and ask any questions that arise.
- Have local legal counsel review your employee manual regularly to make sure everything is compliant with federal and state regulations—but don’t let your attorney make any changes that turn your policies into “legalese.”
Bottom line
Yes, a well-crafted employee handbook is indeed a business necessity. It can be a vital communication link to employees. However, the task of creating a handbook shouldn’t be taken lightly. Be committed to putting in the time necessary to develop your manual, updating it periodically and having it reviewed by experts to make sure it continues to reduce your risk for potential lawsuits.
Ann Kontner is an HR consultant with Steptoe & Johnson PLLC. She may be contacted at ann.kontner@steptoe-johnson.com.