WORKPLACE LAW -
Employee Handbooks

Question:

I am starting a new business and thought maybe I need some kind of personnel manual or handbook for my employees. Is there any downside to having a handbook, and do you have any suggestions for what I should include in it?

Answer:

While you are not required by law to have an employee handbook, it is a good idea to create one for your business. Handbooks can be valuable when it comes to communicating with your employees, and they also provide employees with a resource to consult if they have questions about workplace policies. By having written policies in place, you are also able to develop uniform standards for your employees’ conduct in the workplace. This is especially useful when a disciplinary issue arises, since having a written policy will help ensure that employees know the job performance expectations, and are treated consistently if they violate the company’s policies. In addition to the foregoing practical concerns, there are certain written policies that you are required to issue as a matter of law. An employee handbook can therefore be very useful when it comes to complying with your legal obligations to your employees.

Some employers are hesitant to develop handbooks out of a concern that doing so will limit their flexibility and discretion with regard to developing and enforcing workplace policies. However, the reality is that not having written guidelines in place makes you more likely to encounter problems arising from ignorance of your policies, inconsistent or unfair application of those policies, conflicting policies, and resulting confusion among your employees. This can lead to internal problems such as employee dissatisfaction and poor employee retention, as well as discrimination charges filed by employees who feel they have been treated unfairly. Moreover, having your policies in writing actually preserves your right to revise, rescind, and supplement those policies at your discretion.

Employee handbooks range widely in length and content, and certain policies are required depending on the number of employees you have. The handbook that you develop for your business should be tailored to your business’ particular needs, and should address any concerns that you think you might encounter in your line of work. In addition, you will want to be sure that your policies comply with California law. At a minimum, you may want to include the following policies in your employee handbook.

  • "At Will" Employment Statement, explaining that either the employee or the employer is free to terminate the employment relationship at any time, with or without reason.
  • Unlawful Harassment and Discrimination Policy, explaining that your business is committed to providing a work environment that is free of discrimination and harassment based on any characteristic protected by law.
  • Equal Employment Opportunity Statement, stating that your company will not discriminate against qualified applicants or employees with respect to any terms or conditions of employment based on any characteristic protected by law, and that your business will reasonably accommodate employees and applicants with disabilities if the person is otherwise qualified to safely perform all of the essential functions of the position.
  • Drug-Free Workplace Policy, explaining that your business is committed to providing a drug and alcohol free work environment.
  • Immigration Law Compliance, explaining employees’ obligation to provide documentation evidencing their right to work in the United States.
  • Employee Classifications, such as full time, part time, temporary.
  • Meal and Rest Periods policy, explaining that non-exempt employees are entitled to meal and rest periods. This policy should explain when meals and rest periods are to be taken, where they are to be taken, and how they should be recorded or documented.
  • Timekeeping Policy, explaining how employees record their work time.
  • Leave Policies, including paid leaves like vacation and sick leave, and unpaid leaves, like pregnancy disability leave, medical leave, and others that may apply depending on the size of your business.
  • Benefits, including insurance plans and retirement, if applicable.
  • E-Mail, Voicemail and Internet Use, explaining proper use of technology in the workplace.

There are a variety of other policies that may be helpful, depending on the size and nature of your business.

When you distribute the handbook to your employees, have them sign an acknowledgement stating that they have reviewed and understand the policies that it contains. It is recommended that you review your employee handbook every year or two to incorporate any changes in the law, and to evaluate your current policies to determine whether any revisions or additions are necessary.
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