Every business with employees should consider whether and when to implement an employee handbook. Some companies will put a handbook in place even before they hire their first employee. Others will wait until they have an established workforce. So, what is the right time? Do you need an employee handbook now?

Let me be honest up front. I’ve been advising employers on employment law for more than 12 years. And during that time I’ve had mixed feelings about employee handbooks. Sure, it’s nice to have the policies and other information compiled as a resource for employees. However, written policies sometimes tie employers’ hands, limiting flexibility in dealing with employee situations. On the whole, I’m not ready to suggest throwing out the employee handbook. Instead, I suggest having a good handbook that’s carefully tailored to the specific organization.

What Is an Employee Handbook?

Sometimes they go by other names: employee manuals, policy manuals, etc. But I’m talking about some compilation of rules, policies, procedures, and guidelines that the organization prepares and provides to all employees. (As opposed to ad hoc policies or manuals that only go to management or human resources for administrative purposes.)

Most employee handbooks (should) include these general elements:

• Welcome/Introduction
• At-Will Employment statement
• Disclaimer of Company Rights
• Equal Employment/Anti-Harassment policies
• Attendance and Leave policies and procedures
• Timekeeping and Payroll information
• Employee Benefits summaries
• Other workplace rules
• Acknowledgment of Receipt

This is neither an exhaustive nor detailed list. Many elements above may encompass multiple issues spreading across several handbook sections. But this is a good starting point in considering what an employee handbook would look like if your business doesn’t already have one.

Employee handbooks can range from several to 100+ pages. The size of the workforce and number of locations (including where they are located) factor into the length and scope of handbooks. Bigger companies tend to have larger employee handbooks. But even organizations with just a few employees may choose to have comprehensive handbooks depending on the nature of the business.

These days it’s also common for employee handbooks to be digital. Some companies maintain dedicated electronic portals where employees can access the policies. Others may just have a .pdf version available on an intranet. Even if employees don’t receive a physical copy of the handbook, they should always be required to acknowledge their receipt upon hiring and whenever major revisions are implemented.

Purposes of an Employee Handbook

Different organizations may have additional goals in mind, but here are the some of the primary reasons for having an employee handbook:

• Introduce employees to company culture and values
• Highlight benefits of working there
• Establish workplace expectations
• Provide support for employee discipline
• Defend against claims of “I didn’t know”
• Include legally mandated notices to employees
• Direct employees where to go for help

Employee Handbook Pitfalls

The biggest problem with employee handbooks is that organizations don’t always follow them.

Sometimes this is inadvertent. People just don’t bother to check the handbook before doing something.

Other times, it’s intentional: “Yeah, I know what it says, but we’ll make an exception this time.”

It’s not always wrong to deviate from what’s written in the employee handbook. In fact, employers should expressly state in the handbook that the company can modify their policies at any time. But any modifications should be deliberate and upon consideration of the implications.

Inconsistent application of an employee handbook can provide the basis for employment discrimination claims. Suppose the company makes extra allowance to their leave policy for women, but not men. Despite good intentions, this could upset the men, who might even claim sex discrimination. Obviously, this could work in reverse, and inconsistencies may occur regarding other protected characteristics as well.

There can be issues even when companies follow their employee handbooks carefully. Employers sometimes include illegal provisions in the handbook. Usually, these organizations mean no harm. They are just trying to protect their business. But there are many laws out there that create traps for the unwary.

Here are just a few statements that might well run afoul of the law:

• “Do not discuss your compensation with other employees.”
• “Employees will not be paid for unauthorized overtime.”
• “Do not speak to the media about the Company or its business.”
• “You cannot solicit fellow employees for any purpose while on Company premises.”
• “Employees will be expected to work through lunch if necessary to complete assigned tasks.”

Unionized Workforces

Before concluding, I note that when a union represents employees in a workplace, the employer must negotiate over terms and conditions of employment. This typically results in a written collective bargaining agreement, or “union contract.” This agreement most often addresses many issues that an employer without a union would normally cover in the employee handbook. Consequently, much of an employee handbook may not apply to the unionized employees in the organization. But a handbook may still be desirable for unrepresented employees, including management.

Do You Need an Employee Handbook?

If you have read this far, have employees, and don’t have an employee handbook, then your business would probably benefit from having one. However, you must be prepared to take it seriously. This means preparing a handbook that specifically reflects your workplace, distributing it to employees and answering resulting questions, and applying it consistently every day.

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