Introduction
You’ve been tasked with writing your business’s employee handbook. When writing an employee handbook, focus on the primary purposes. The employee handbook should comply with state and federal rules and regulations related to labor and employment. The employee handbook should minimize the burden on HR by explaining the myriad of policies and benefits for each employee and every new employee. The employee book should set expectations for all employees and management. Finally, when an employee sues the company for employment law violations such as harassment, discrimination, overtime violation, minimum wage violation, rest breaks violation, or meal break violations, your lawyer will need the employee handbook to defend against the lawsuit.
In theory, writing an employee handbook should be easy; however, writing an employee handbook is challenging. Unless you know what you’re doing, writing an employee handbook from outline to completion may take up to a year. At Nakase Wade, we have a low fee for writing a company handbook, starting at $2,500 for employers with less than 30 California employees; $5,000 for employers with greater than 31 California employees.
In this article, our employment attorney for companies discusses employee handbook as follows:
What is the purpose of the employee handbook?
An employee handbook can be a valuable communication resource for employees and employers. An employee handbook provides information and guidance about company policies, procedures, benefits, and values. A handbook can help organize a company and provide the framework for dealing with employee disputes such as harassment and discrimination. It can even protect an employer from lawsuits. Whatever the reason an employer has for instituting an employee handbook can serve many purposes, all of which protect a company by making employees aware of expectations and rules.
What is in an employee handbook?
An employee handbook may also be referred to as an employee manual or a staff handbook. This is a document that lays out a business’ policies, rules, and expectations for employees. It also delineates what employees should expect from their employer. When an employee is first hired, they are typically given a copy of the company’s employee handbook. They are also given a form to sign that says they have read the entirety of the handbook and agree to its terms and conditions.
It is important for a business to have an employee handbook so that employees understand the company’s rules and policies. A handbook assures employees that there are consistent policies that apply to everyone. All employees are treated equally, meaning new hire Tisha in Marketing has to follow the same guidelines as seasoned professional Mark in Sales.
When a company’s policies are clearly set out in an employee handbook, the work environment can become more positive, safer, and productive. There is much less risk of harmful or inappropriate conduct. This means that a well-written handbook can protect a company from sexual harassment, discrimination lawsuits, and wrongful termination. In the event of a lawsuit, an employee handbook can even help defend a company by showing that certain policies and rules existed.
Is it mandatory to have an employee handbook?
There are certain policies that must be put in writing, though the specifics of this depends on the business and where it is located. For example, California employers must provide an anti-harassment and internal reporting procedure policy. A handbook can be a good place to store all major policies. If an employer is unsure what policies he or she is required to put in writing, as in a handbook, they should contact an experienced employment law attorney for assistance.
One benefit of an employee handbook is that it puts all the company’s rules and expectations in a single place for employees to review whenever they please. Let’s say that Laura is expecting a baby but does not want to ask HR or her manager about the company’s maternal leave policy so early in the pregnancy. Luckily, Laura can simply look up this information in her company’s employee handbook.
Another major benefit of an employee handbook is that it can protect an employer from lawsuits. For instance, if an employer fires an employee, it is beneficial for the company to have an at-will policy in their handbook that shows the company was legally permitted to do so.
How do you write a simple employee handbook?
It is important that an employee handbook is properly organized and written in clear, concise language. After figuring out what material one wants to include, one should put together a logical outline. For instance, it would be best to group subjects together by category. Benefits and harassment policies should not be in the same section, as an example. Not only does this kind of organization make the handbook easier to write, it also makes it easier for employees to read and reference.
For ease of reading, it is best to write in simple language using short sentences. It is also recommended to avoid using legalese or confusing wording. The simpler, the better. Once an employer has produced a draft, he or she should have an employment lawyer review it to make sure that, legally, the company is covered. Then, the employer should have a writer proofread the handbook for errors and language.
At Nakase Wade, our employment attorney’s fee for writing a employee handbook starts at $2,500 for employers with less than 30 California employees; $5,000 for employers greater than 31 California employees.
What should an employee handbook include?
An employee handbook should state a company’s policies, expectations, and what employees may expect from their employer. For example, Harvard’s employee handbook outlines the employer’s legal obligations and employee rights. The employee handbook is a convenient place to put this information because it is all in one place. It should be noted that an employee may wish to have separate written agreements with an employee about specific policies, such as intellectual property rights, nondisclosure agreements, arbitration of disputes, and non-compete agreements.
Below are items that are typically included in an employee handbook.
- Antiharassment
- Equal employment opportunity
- At-will employment
- Antiretaliation
- Benefits
- Code of conduct
- Safety and security
- General employment information
- Pay policies, including meal and rest periods, overtime eligibility, timekeeping, and paydays
- Sick leave policy
- Family and medical leave
- Paid vacation policy
- Process for filing a complaint
- Assessment process for raises and promotions
- Disclaimers (it should be mentioned that the employer may change the handbook policies at any time at their discretion)
Further items that may be included in an employee handbook are listed below. These are less essential, but are welcome:
- Company’s mission statement
- Welcome letter from founder or CEO
- Annual office closures
- Ideal company culture
- Dress code and attendance expectations
- Standard operating hours
- Progressive discipline or behavior policy
- Promotion/raise policy
- A form to sign indicating the employee understands the handbook and agrees to the conditions and terms
If an employer would like further guidance concerning the creation of an employee handbook, he or she may refer to the following sources:
- Occupational Safety and Health Administration
- United States Department of Labor
After an employer has completed their employee handbook, they should make it available in an easily accessible format. Often, businesses will save their employee handbook as a PDF or have it available for viewing on the company intranet site. A digital employee handbook is easier to update than a paper copy. In the event of litigation, it is good practice to save past versions of the employee handbook and note dates of any updates.
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