Employee handbooks contain key employment policies. Private sector employers should not only maintain handbooks, but also understand their significance and purpose. Below we cover the most important elements of effective employee handbooks.

The Purpose

An employee handbook essentially provides employees with information required by law, such as an anti-harassment policy and an employee’s right to certain leaves of absence. For example, a leave policy may convey the different types of leave available and provide instructions to request leave or an accommodation.

Handbooks also provide guidance about an employer’s expectations of workplace behavior and offer direction regarding how to seek help or raise a concern.

Solid handbook policies also can offer employers a solid defense to litigation claims. In the event of a wage and hour claim, for example, an employer will benefit from a policy prohibiting off-the-clock work and time rounding.  Without adequate policies, it is more difficult for employers to show they acted appropriately, especially if time records cannot resolve a particular claim. 

Similarly, including a compliant meal and rest break policy in the employee handbook will provide clear instruction to employees regarding when and how they must take their breaks. The policy should also explain how an employee should notify the employer if a break was interrupted or missed. By articulating such policies in a handbook, some responsibility is placed on the employee to raise a concern. If the employee makes a claim down the road, and the employer can show that the employee failed to bring the problem to the employer’s attention as required by policy, the employer can better demonstrate that the employee’s claims lack merit. 

Creating a Clear and Concise Handbook

Simple is always better. Employers should aim to create handbooks that are concise, clear, and straightforward so employees understand expectations. Unfortunately, some employers wrongly perceive that complex, legalistic policies provide better legal protection. In fact, the opposite generally is true. Courts will always resolve ambiguities in favor of employees.

Employers should not use handbook policies to reserve rights they do not already have, require employees to waive their rights, or unwittingly create a contract. That said, if a policy obligates the employer to take some action, the employer should ensure it does so.

Finally, a handbook is only useful to the extent employees actually read it and understand it. It may be unreasonable to ask employees to read overly complex policies and comprehend their meaning, especially in a document that is 75 or 80 pages long.

Allowing Flexibility

Employers should draft handbook policies to provide themselves with maximum flexibility.  For example, rather than including a “Prohibited Conduct” policy that summarily outlines unacceptable behavior, employers will be better served by addressing specific issues in individual policies. By attempting to create a specific list of prohibited conduct, the employer creates the unintended consequence of making it appear that any behavior not specified in the list is of lesser concern.

Moreover, a “Prohibited Conduct” policy can undermine employees’ “at-will” employment status. To the extent employees misconstrue the list of prohibited conduct as defining the only conduct that could result in termination, the employer may face an uphill battle trying to prove a legitimate reason for its decisions.

Of course, handbook policies cannot anticipate every situation that may. For this reason, an effective policy is one that is flexible enough to meet any number of circumstances.

One Size Does Not Fit All

Handbook generation software and templates can be a helpful starting point in drafting a comprehensive document. In most cases, though, these tools are insufficient in addressing the legal requirements for each workplace. For example, different leaves of absence may apply depending on company size; key exceptions to overtime, reporting time pay, or rest breaks apply only in certain industries; and remote employees may need instructions on heat illness prevention, travel time, suitable seating options, or driving company vehicles. Employers with employees outside of California must tailor their policies to ensure they comply with the law they deem applicable. 

In short, employers must ensure they tailor their policies to the needs and legal requirements of their actual workplaces and should not view any templates or builder software as a “plug-and-play” solution.

Maintaining Updates

The final element to creating an effective employee handbook is adopting a practice to keep up with key legal developments.  The best practice is to conduct annual reviews and reissue new versions of the handbook at the beginning of each calendar year.  That way, they can incorporate new laws and court decisions on a regular basis.

Employers should seek assistance from competent legal counsel to ensure compliance with all applicable industry-specific standards. Although this process may seem costly compared to purchasing creation software, retaining a competent attorney to review a handbook is actually one of the least expensive ways to spot potential risk areas.

The Bottom Line

A well-written and practical employee handbook is the foundation of a functional workplace. Taking the time to draft clear and compliant policies is one of the most important steps an employer can take to protect their business.