Employment Handbook: Purpose, What's Included
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- Avg cost to draft an Employment Handbook: $730.00
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Do you employ people in the modern era?
The civil rights movement gave way to legislation and rules that protect people from discrimination based on race, religion, age, disability, or gender.
Fortunately, companies sought to achieve greater compliance and employee communication as a result. The employment handbook is an excellent solution for ensuring that you accomplish your human resources objectives.
After all, your employees are by far the most important resource you have.
Before typing up an employment agreement, familiarize yourself with the process. The informative article below addresses everything you need to know.
What is an Employment Handbook?
Employment handbooks are a written code of conduct that informs employees about rules and company culture. They can also be used to supplement an employment contract between you and your non-exempt talent. An employment handbook is a right choice when you hire and retain employees.
Purpose of Employment Handbooks
Employment handbooks serve to establish the rules and guidelines that employees must follow when working for your company. It can also help them understand what will happen if they violate any of these guidelines as well. A thorough, straightforward employment handbook can help you communicate these terms clearly.
The main purpose of employments handbooks includes:
- Communicate expectations and guidelines to employees
- Protect employee’s federally protected rights
- Reduce the number of human resources inquiries made
- Encourage compliance among managerial staff members
- Offer a document that documents your company’s values
- Protect your rights as an employer
If you employ people, then you must draft, review, and distribute an employment handbook. However, you should familiarize yourself with the critical components so that you achieve the best possible result. Otherwise, you risk leaving out key provisions that make your document less powerful.
What’s Included in an Employment Handbook
Employment handbooks look different for every company. Some companies choose to use a shorter, less explanatory document, while others will specify as many details as possible. Each option has distinct advantages, meaning you should speak with employment lawyers to analyze your situation.
These are some sections that are often included in an employment handbook:
- Section 1. Nondiscrimination policy
- Section 2. Communication policy
- Section 3. Compensation and benefits policy for new hires
- Section 4. Separation policy
- Section 5. Dress code provisions
- Section 6. Code of ethics policy
- Section 7. Workplace safety guidelines
- Section 8. Attendance policy
- Section 9. Acceptable use policy
- Section 10. Employee termination policy
The sections that you choose to include will depend upon your company specifically. For instance, you may offer a work environment that doesn’t enforce a dress code, which would nullify the need to include it in your employment handbook. Deploy a tried and true legal process when it comes to creating your employment handbooks.
Click here to learn about a Code of Ethics.
How To Create an Employment Handbook
It can be overwhelming to tackle the project of creating an employment handbook. There are several details to remember, which means there’s a prime opportunity to inadvertently omit essential information. Following a step-by-step checklist will help.
Here’s how to create an employment handbook:
Step 1. Decide How You Want to Start
Many companies already have an existing employment handbook that they use. In this case, you have the opportunity to review and revise the current language and design, but you could also decide to start fresh. New companies will need to start their employment handbooks from scratch.
Step 2. Draft an Employment Handbook Outline
Based on the sections that you want to address in your employment handbook, start with an outline. Take each distinct section and break it down into smaller subsections.
You will also need to consider how laws affect employment relationships, including:
- Family Medical Leave Act (FMLA)
- Consolidated Omnibus Budget Reconciliation Act (COBRA)
- Equal Employment Opportunity Commission (EEOC)
- Fair Labor Standards Act (FLSA)
- Relevant state labor laws, including break laws and leave laws
- At-will employment laws
If you choose to not address these laws in your employment handbook, it could result in employee confusion or non-compliance issues. Ensure that you address them in your employment handbooks.
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Step 3. Summarize Your Policies
Your outline now serves as a basis by which you summarize each of your policies and procedures. Your employment handbook should use simple, straightforward language that doesn’t violate an employee’s civil rights. Take care to emphasize the most essential provisions through an intelligent design approach.
Ensure that you go into detail when it comes to employee rights and obligations, including:
- Eligibility for benefits
- Wage payments
- Paid overtime rules
- Paid time off (PTO) rules
- Vacation pay rules
- Dress code
- Medical leave rules
Employees tend to refer to these rules more than others. By covering them comprehensively, you could effectively reduce the number of inquiries into your human resources department.
Step 4. Review Your Employment Handbook
Once you’ve drafted and summarized each section, your next step is compiling them into a single document. Incorporate any notes and changes as directed by crucial company leaders. Produce the first draft to share with your team for a final review, and take notes of any questions or additional changes.
Image via Pexels by Craig Adderly
Step 5. Contact Employment Lawyers for a Final Review
Employment lawyers will review your employment handbook for enforceability and compliance. This step is critical, which means that you should not skip it. Keep in mind that disgruntled employees can use your employment handbook as evidence against you in a legal claim.
Your employment lawyers will take the time to determine what risk you are taking by leaving the document as-is and what improvements you can make to ensure that you remain protected. Always follow through on your lawyer’s recommendations based on statutory guidelines.
Step 6. Print or Publish Your Employment Handbook
After finalizing your employment handbook with employment lawyers, it is time to publish or print your employment handbook. Many companies today favor electronic delivery since it saves a tremendous amount of money on printing costs. In today’s world, a digital format makes the most sense, but it is also nice to receive a handbook if you can afford it.
Step 7. Distribute Employment Handbooks to Employees
The next step is to distribute the employment handbooks to your employees. Make an announcement about the distribution regarding where they can locate digital copies or receive physical ones. You should also post your employment handbooks on company intranets to which employees have routine access.
Step 8. Update As Needed
Get your managerial team on the same page when it comes to updating your employee handbooks. Consider an idea bank or repository where notes can be made and stored until it is time to update the employment handbook, as necessary. Following through on updates is essential to managerial participation in updating employment handbooks.
Getting Help with an Employment Handbook
Getting help with an employment handbook starts by working with experienced employment lawyers. Your employment handbook can be a blessing or a curse. Hire employment lawyers to ensure that they actually help your company save time and potentially money from future disputes.
Employment handbooks reflect the company’s internal values and can make or break employee engagement for new hires. Get them excited and geared up about working for your organization by clearly stating your purpose and letting employees know how they fit into the bigger picture of your business. Employment lawyers will protect your rights and help you achieve a favorable outcome.
See Real Employment Handbook Projects
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DC L.
Darren Craig ("DC") Lamb is the Founder and Managing Partner of DCL Legal, AI, & Business Consulting, a Nashville-based law firm serving entrepreneurs, founders, and growing businesses as outside general counsel. Licensed in TN, KY, and IN, Darren previously served as lead associate at Wilson Elser (AmLaw 200), handling all litigation for a Fortune 500 e-commerce company across KY, IN, and TN, and managing complex coverage matters for a leading international insurance market. DCL Legal focuses on business litigation, commercial contracts, corporate governance, AI & technology advisory, and fractional general counsel engagements — delivering executive-level legal guidance without the cost of full-time in-house counsel.
"Very responsive and communicated findings clearly and in depth."
Kenneth G.
Kenneth E. Gray, Jr. is a business and tax attorney who advises entrepreneurs, investors, and closely held companies on transactions, tax planning, disputes, and long-term wealth structuring. He focuses on helping clients make legally sound decisions that also make business sense. Ken’s practice includes business formation and restructuring, mergers and acquisitions, private investments and fundraising transactions, contract drafting and negotiation, and cross-border matters. He also maintains a significant tax practice, advising on federal and state structuring, specialty filings (including partnership, corporate, and non-resident matters), and representing clients in disputes before the U.S. Tax Court and other federal and state tribunals. In addition to his transactional work, Ken handles commercial and business litigation, including tax controversies, financial disputes, and partnership matters. His litigation experience informs how he structures deals and governance documents, with an eye toward preventing disputes before they arise. Ken also advises individuals and families on estate planning, trust formation, tax-efficient wealth transfer strategies, and probate administration, including planning involving closely held businesses and foreign assets. Before practicing law, Ken worked in banking and private equity, including managing a $5 billion emerging markets fund-of-funds portfolio at the U.S. Overseas Private Investment Corporation (OPIC) and serving in equity research at ABN AMRO. That financial background allows him to understand transactions from both the legal and capital perspective. He holds a J.D. from Georgetown University Law Center and an MBA from Yale University. He practices before the U.S. Tax Court, various state courts, and other federal courts.
"It is not easy to find a lawyer that knows Offshore Asset Protection Trusts, which own a foreign LLC, which owns a USA LLC. Fines could reach $100K if the tax forms are incorrect, or not filed. He was able to review my draft returns and provide memos with required changes (many, many changes), after 1 follow-up everything was basically done other than a few tiny edits. I really appreciated how he worked me in, right in the busiest time of tax season, to ensure there were no errors. Would definitely hire again."
Valerie L.
Valerie is a passionate attorney specializing in Employment Law, Family Law, Personal Injury, and Business. With a strong foundation in the legal field, she is committed to helping individuals navigate the intricacies of their legal agreements. Valerie prioritizes open communication, ensuring her clients feel seen, understood, and confident as they make important decisions for their future. She is committed to empowering clients to become the best version of themselves while addressing their unique needs throughout the process.
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Jeremiah C.
Jeremiah C.
Creative, results driven business & technology executive with 27 years of experience (17+ as a business/corporate lawyer). A problem solver with a passion for business, technology, and law. I bring a thorough understanding of the intersection of the law and business needs to any endeavor, having founded multiple startups myself with successful exits. I provide professional business and legal consulting. Throughout my career I've represented a number large corporations (including some of the top Fortune 500 companies) but the vast majority of my clients these days are startups and small businesses. Having represented hundreds of successful crowdfunded startups, I'm one of the most well known attorneys for startups seeking CF funds. I hold a Juris Doctor degree with a focus on Business/Corporate Law, a Master of Business Administration degree in Entrepreneurship, A Master of Education degree and dual Bachelor of Science degrees. I look forward to working with any parties that have a need for my skill sets.
"Jeremiah helped me review an employee handbook within health and human services in addition to employee contracts. He was thorough in his review and feedback of the handbook and brought up imperative points that were previously overlooked. Very satisfied overall. I would work with him again."
Paul M.
Transactional attorney and corporate in house counsel for 15 years. Draft all types of contracts and employment agreements.
"Paul was really great to work with. He was super responsive. I offered to give him more time to read my FDD and he had it done in under the time the website quoted. He gave me a thorough error up addressing all the issues. 10/10 would highly recommend."
Alen A.
Alen Aydinian is a seasoned real estate attorney with a wealth of experience in handling transactional matters, real estate transactions, and lease agreements. As a licensed real estate broker, Alen Aydinian brings a unique perspective to the table, allowing clients to benefit from both legal expertise and practical industry knowledge. He is a trusted advisor in the realm of real estate transactions and lease agreements. Whether representing buyers, sellers, landlords, or tenants, Alen Aydinian is committed to providing strategic counsel and dedicated advocacy every step of the way. Clients rely on him for sound legal guidance, proactive problem-solving, and unwavering support throughout the transaction process.
"I contracted Alen for a commercial lease review. I couldn't be happier with the results, as he exceeded my expectations. He completed the project 2 days ahead of the estimated timeframe, gave me high quality feedback, and suggested alternate language. We had a call at the end and he answered all of my questions in detail. Incredible value. I'm so happy I chose Alen, and I definitely recommend him to anyone else needing legal assistance."
August 28, 2021
Nicholas A.
I help small business owners build and protect their dreams. I always thought that I would just be a litigator. Then I joined an intellectual property clinic in law school. We were helping nonprofits and small businesses reach their goals. I fell in love with the work and decided to open my own firm so I could keep helping them. When I decided to start Victrix Legal, I decided that it would be a modern law firm designed to serve professionals. It would be different from every other law firm. In my experience, my law firms are designed to promote inefficiency and reactionary lawyering. Because in most firms, you make more money when you spend more time on a project. And you lose money if your client doesn't get sued. In my opinion, that's a built-in conflict of interest. My firm is different. I use flat fees for most basic projects to keep costs predictable for you and incentivize efficiency. I offer long-term advisory plans and legal audits to prevent issues from happening. I want my clients to see me as their business partner, not just the guy they call when they are in trouble. If any of that interests you, please reach out to me. I offer free consultations. Let's set aside some time and talk about what your legal needs are.
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Employee Handbook Review
"Elizabeth did an excellent job on our employee handbook. She had a quick turnaround, caught and corrected critical items/policies that were initially missed, and ensured the handbook remains fully compliant. Her attention to detail and responsiveness made the process smooth and efficient."
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Employment
Employment Handbook
North Carolina
Employment handbook non-compete policy?
I recently accepted a job offer with a new company, and part of the offer was that I had to sign an Employment Handbook. This Handbook includes a non-compete policy that I am not comfortable with, as it restricts my ability to work with certain clients and organizations. I am concerned about the implications of this policy, and I would like to understand my rights and obligations under this policy so that I can make an informed decision about my employment.
N'kia N.
A covenant not to compete (AKA "non-competition clause," "non-compete clause," or simply "non-compete") is a special contract term often found in employment agreements. However, not all jurisdictions allow non-competes in employment agreements. Additionally, to be valid/enforceable, a non-compete must be narrowly tailored to a legitimate business interest. An employee who has concerns about the validity/enforceability of a non-compete, or about specific rights and obligations under a non-compete, should consider speaking with a knowledgeable attorney.
Employee Rights
Employment Handbook
California
Can my employer change the policies in the employment handbook without notifying the employees?
I recently discovered that my employer made significant changes to the employment handbook, including policies regarding vacation time, sick leave, and disciplinary procedures, without notifying the employees or providing us with an updated version of the handbook. I am concerned about the legality of these changes and whether my employer can enforce them without proper notification and acknowledgment from the employees.
Dolan W.
Hello! I'm so sorry this is happening to you. Generally, if you have a contract (the handbook or policy), then you are bound to those terms. If the employer changes the terms, they are allowed to; however, they need to give you some notice of the change in those specific terms in advance. This means that they should give you notice equal to the time between pay periods (e.g. two weeks). If they make a change, then it's not technically enforceable until you get proper notice. The notice does not need to be in writing. Good luck! Dolan
Employment
Employment Handbook
New York
Employment handbook family leave policy?
I recently accepted a position at a new company and I was given an employee handbook to review prior to my start date. I noticed that the handbook does not include any information on family leave policies. I am wondering what the company's policies are related to family leave and how they may affect my employment. I would like to understand my rights and responsibilities as an employee when it comes to family leave.
Gregory F.
Generally, employers must have at least 50 employees at your location or within a 75-mile radius of your location to be covered under the FMLA. Further, employees of covered employers are not eligible for FMLA leave until they have been employed for at least 1 year and have worked at least 1,250 hours within the past 12 months.
Employment
Employment Handbook
Florida
Do salary employees pay for time off if office is closed?
My daughter is currently working for a Chiropractic Office in Jacksonville. She is still within her 90 days, she was hired as a salaried employee, if she works extra the pay is the same. However, due to an upcoming holiday, she was discussing her time off with another employee and how they would have several days off to equate to a long weekend. She was told that while they are closed that Friday if she wants to get paid she will have to use her accrued PTO or her pay will be deducted and she was told not to discuss pay, hours, or any such thing with her fellow employees to go straight to HR. From HR she was then told that they do not offer sick days so they must use their PTO for sick days and that it cannot be used for days off which does not make any sense to what was said before. So for days they are not open she is going to be getting money deducted even though it is beyond her control. She is 23, working her first real job and maybe I am wrong but something does not seem right. Is there anything wrong or am I just being a worried mother.
Forest H.
There is a lot going on here. A couple of high points: 1) It is against federal labor law to prohibit employees from discussing their salary. 2) Salaried employees can be required to use PTO but their pay cannot be reduced to cover holidays if they don't have any PTO available. 3) 90 days is irrelevant, many employers will have a "probationary" period but that does not affect what laws apply to the employee.
Employment
Employment Handbook
California
Employment handbook confidentiality?
I am an employee of a large company and I recently received a copy of the company's Employment Handbook. I am concerned about the confidentiality of the information contained in the handbook. I want to know what legal obligations I have to keep the information in the handbook confidential, and what the legal consequences are if I do not keep the information confidential.
Myrna L.
According to the National Labor Relations Board, Employee Handbooks are not confidential. According to the NLRB, policies that treat Employees Handbooks confidential precludes employees from discussing working conditions, pay and benefits with unions or third parties; this is a violation of Section 7 of the National Labor Relations Act.
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Employee Handbook
Location: Massachusetts
Turnaround: Over a week
Service: Contract Review
Doc Type: Employment Handbook
Page Count: 25
Number of Bids: 6
Bid Range: $600 - $1,150
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