FAQS

• What are the key elements I should include in an employee handbook?

While the specific content of an employee handbook will vary depending on the nature of the business and states in which the business operates, certain key elements should be included:

• Introduction and Company Overview: Introduce the company, its mission, values, and history.

• Employment Policies: Outline employment classifications, employment-at-will status, equal employment opportunity policies, and any probationary periods.

• Code of Conduct: Set forth behavioral expectations, ethical standards, dress code, and guidelines for using company resources.

• Anti-Discrimination and Harassment Policies: Clearly state the company’s commitment to providing a workplace free from discrimination, harassment, and retaliation. Include reporting procedures and the investigation process.

• Compensation and Benefits: Detail the company’s compensation structure, including salary, bonuses, and benefits such as health insurance, retirement plans, and paid time off. Somethings this information is contained in an employee’s offer letter. 

• Leave Policies: Describe the various types of leave offered, including vacation, sick leave, parental leave, and bereavement leave. Outline the procedures for requesting and approving time off.

• Performance Management: Explain the performance evaluation process, goal-setting, feedback mechanisms, and potential consequences for substandard performance.

• Disciplinary Procedures: Provide a clear outline of the steps and procedures for disciplinary actions, up to and including termination, ensuring employees understand their rights and the consequences of policy violations.

• Confidentiality and Intellectual Property: Address the protection of confidential information, intellectual property, and trade secrets. Include guidelines for non-disclosure agreements and data security measures. Depending on the nature of the business, it may be prudent to require some employees to separately sign certain post-employment restrictive covenants, such as non-disclosure agreements and non-solicit agreements. 

• Complaint and Grievance Procedures: Guide how employees can raise complaints, concerns, or grievances within the organization and outline the steps for resolution.

• Health and Safety: Highlight the company’s commitment to providing a safe and healthy work environment, including workplace safety policies, emergency procedures, and reporting mechanisms for hazards or accidents. It is important to be aware of and comply with OSHA laws in this regard.

• Acknowledgment of Receipt: Include a section for employees to acknowledge that they have received, read, and understood the employee handbook, reinforcing the importance of compliance.

• Why does my company need an employee handbook?

The main advantage of having an employee handbook is that it provides employees with a clear understanding of their rights and responsibilities in the workplace. Moreover, it can protect employers from legal liabilities by outlining their expectations and policies, which promotes transparency and helps avoid misunderstandings or conflicts. 

In fact, there are some state and federal laws that require certain disclosures to be made to employees. An employee handbook is often an ideal place for such disclosures. All in all, an employee handbook is a valuable tool that ensures fair and compliant practices in the workplace.

• What can happen if my company does not have an employee handbook?

First, the company opens itself up to legal liability.  No clear guidelines on company policies and procedures often lead to confusion and inconsistencies in the workplace. This could result in misunderstandings, disagreements, and even legal disputes. Second, your managers and staff may not be aware of their rights and responsibilities, leading to non-compliance with laws and regulations. This could result in fines, penalties, and damage to the company’s reputation. Overall, an employee handbook is essential for creating a clear and consistent workplace culture, fostering employee engagement, and ensuring legal compliance.

• Are employee handbooks enforceable?

Generally, no.  But it’s crucial that the handbook contains language to make this clear.  In certain rare instances, courts have enforced employee handbooks as legally binding contracts.  See University of Chicago Law Review Article.  Two of the first cases to do so were Toussaint v Blue Cross & Blue Shield of Michigan, 408 Mich 579, 292 NW2d 880, 892 (1980) (holding that employer statements of company policy contained in manuals can give rise to contractual rights without evidence that the parties mutually agreed that the policy statements created such rights) and Forrester v Parker, 93 NM 781,606 P2d 191 (1980) (holding that policies laid out in an employee manual constitute an implied employment contract).  Since that time, some other courts have followed suit.  Woolley v Hoffmann-La Roche, Inc, 99 NJ 284, 491 A2d 1257, 1264 (1985), (explaining that interpreting the common law of contracts “in the light of sound policy applicable to [a] modem setting” requires enforcing employee handbooks through contract law); Pine River State Bank v Mettille, 333 NW2d 622, 629-30 (Minn 1983) (concluding that employee handbook provisions are enforceable without the need for consideration beyond the employee’s continued performance of services).  

In short, having an experienced employment lawyer review your employee handbook to avoid a scenario where that employee handbook is legally enforceable against your company is essential.

• Where can I find an experienced employment lawyer to write or review and update my employee handbook?

Having an experienced employment lawyer review your employee handbook is crucial to ensure legal compliance, minimize risks, and create a fair and transparent work environment. A seasoned employment lawyer can provide the necessary expertise to customize and update the handbook, protecting both employers and employees while promoting a positive workplace culture. 

Contact our highly experienced employment attorneys today for a free initial consultation about your employee handbook: (877) 858-6868 or coordinator@caklegal.com.