October 22, 2024 • 9 mins
An employee handbook is one of the most important documents an employer can maintain. Why do so many employers consider it essential? We'll cover these reasons, and dive into the ways an employee handbook can help you. Listen in to learn more about:
- [0:57] Formalizing policies
- [1:40] Meeting state and local policy and notice requirements
- [3:24] Supporting the onboarding process
- [4:04] Guiding employment decisions
- [4:31] Reinforcing at-will status
- [6:08] Informing employees if they have questions or concerns
- [7:03] And policies considered must-have for a handbook
Learn more about our RUN Powered by ADP® bundles and how our Employee Handbook Wizard can help you create your employee handbook.
This content is based on generally accepted HR practices, is advisory in nature, and does not constitute legal advice or other professional services. ADP does not warrant or guarantee the accuracy, reliability, and completeness of the content. Employers are encouraged to consult with legal counsel for advice regarding their organization's compliance with applicable laws. This content is current as of the published date.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Jim (00:00):
An employee handbook is one of the most important documents
an employer can maintain, butwhy is it considered essential?
During this podcast, we'll coversix reasons why and dive into
how an employee handbook can helpyour business and your employees.
Welcome to HRpreneur.
I'm Jim Duffy.
From Main Street to yourstreet, the HRpreneur podcast.
Is centered around helping smallbusinesses like yours gain the knowledge
(00:22):
you need from hr, payroll, and hiringto time taxes, benefits, and insurance.
Today we'll talk with our guest MerylGutterman about employee handbooks.
Meryl is Senior Counselwith ADP's HCM Group.
Meryl.
Hello.
It's great to have youback on our podcast.
Meryl (00:37):
Hi, Jim.
Thanks for having me.
It's great to be back here.
Jim (00:41):
So we are about to talk about a very important topic, and I, again, thank
you for helping us understand why anemployee handbook is considered essential.
Sometimes employers aren't sure why theyshould maintain an employee handbook,
especially small business employers.
Can you start us off with areason for why a written employee
handbook is considered essential?
Meryl (01:02):
Sure.
So first it can helpformalize company policies.
Most companies have policies that governtheir employment practices, but sometimes
small businesses especially maintain thesepolicies informally, whether it's in a
separate document or even just repeatingpolicies verbally when situations arise.
(01:22):
And this can lead to inconsistentapplication and confusion about
both employer and employeerights and responsibilities.
So if you have an employee handbook,that can help you formalize those
policies so employees have a centralwritten resource that they can
go to to read and to reference.
Jim (01:40):
So Meryl, can you please help us understand why an employee
handbook can help meet state andlocal policy and notice requirements?
Meryl (01:47):
Well, there are various laws that require employers to provide certain
information to employees in writingand an employee handbook can be the
vehicle to help employers effectivelydisseminate that required information
and fulfill these requirements.
So, for example, thereare a growing number of states
that are requiring employersto maintain a written policy on
(02:07):
preventing harassment in the workplace.
And this includes California where allemployers have to develop and disseminate
a written harassment, discrimination,and retaliation prevention policy.
And California also requires manyemployers to have a written policy
on preventing workplace violence.
So while there's no law thatrequires you to have a written
(02:29):
employee handbook, if you do haveone, it can help you meet other
compliance obligations that you may have.
Jim (02:36):
So Meryl, can you clarify something for me?
You mentioned that no law requiresemployers to adopt an actual
employee handbook, but Aren't therelaws that require certain policies
be included if the employer doesindeed have an employee handbook?
Meryl (02:49):
Yes, there are.
Employers may be required by stateor local law to include certain
policies in their employee handbookif they do maintain that handbook.
So, for example in Colorado, everyemployer with a handbook must include a
copy of the Colorado Overtime and MinimumPay Standards order or a COMPS order
(03:10):
poster in it.
Also in Colorado, employers that requireemployees to sign the handbook must
have the employee sign an acknowledgmentof being provided with that COMPS
order or that COMPS order poster.
Jim (03:24):
So I understand another reason to have an employee handbook is to
help support the onboarding process.
So with a new hire's first days,weeks, and months being such a critical
period of the employment relationship,how can the employee handbook help?
Meryl (03:38):
Well, an effective employee handbook can help the onboarding process
by introducing new employees to yourcompany, to your culture and your values.
And if it's well written and organized,it can also let your employees
know what they can expect from youand what you can expect from them.
So for example, you can use the handbookto communicate important workplace
policies, rules, procedures, and eventalk about benefits information as well.
Jim (04:03):
So that's a great point.
And Meryl, if you don't mind,let's move on to the next reason,
which is that a handbook canhelp guide employment decisions.
Can you expand a little bit on this one?
Meryl (04:12):
Sure.
A handbook can also serve as a guidefor managers and employees regarding how
the company addresses workplace
issues and questions.
Also, it can help demonstratefairness when policies are applied
and enforced consistently, and italso may help you justify or defend
certain employment decisions.
Jim (04:30):
So Meryl, another reason to have a handbook is to reinforce
an employee's at will status.
Can you please explain what isat Will status and how can the
employee handbook help reinforce it?
Meryl (04:41):
Absolutely.
So at will employment generally meansthat absent certain exceptions, such
as an implied contract or publicpolicy, either the employer or the
employee can terminate the employmentrelationship at any time for any reason,
as long as that reason is a lawful one.
Most employment is considered at will,and you can use your handbook to reinforce
(05:03):
this with your employees by prominentlydisplaying an at will statement in the
beginning of your employee handbook, andthen also restating at will status in
your handbook acknowledgment as well.
I will add here that there's an exceptionto this general rule in Montana.
Where at will employment is notrecognized, you'll also want to make
sure that you avoid policies in yourhandbook that might create confusion
(05:26):
about at will status, such as policiesthat might restrict your ability
to decide what type of disciplinewould be appropriate if there were
a violation to a workplace rule.
So instead, in your workplace conductpolicies, you want to make it clear that
violations may result in disciplinaryaction, up to and including termination,
and that the company reserves the rightto decide what disciplinary action to
(05:49):
take in any given situation, consideringthe severity of the offense and the
employee's history of misconduct.
Keep in mind, however, thattreating employees fairly is key,
and similar situations and pastpractices should guide and impact the
disciplinary action that you take.
Jim (06:06):
Thank you for clarifying that, Meryl.
The last reason I wanted to cover is thatthe handbook informs employees where to
go if they have questions or concerns.
Can you please tell uswhy this is important?
Meryl (06:18):
Sure.
So, an employee handbook can be one ofthe most effective ways to communicate
with employees, and this includesinforming employees where to go if
they have those questions or concerns.
Throughout the handbook, you can makesure that you're including contact
information for the individual
to whom the employee should direct theirquestions about the employee handbook and
any of the policies that are within it.
(06:39):
And also, if you have an employeewho is making a complaint about
violating the policy, they shouldhave the information about who they
can contact to make that complaint.
And then finally, where states and localjurisdictions require certain policies,
they may also require employers toinclude information on where employees
can file complaints with the jurisdictionabout those alleged violations.
Jim (07:03):
So, Meryl, before we wrap up, could you please provide us with some
examples of policies that are consideredmust have for employee handbooks?
Meryl (07:11):
Sure.
Let me give you a few.
There are many more, but these arethe ones that come to mind first.
So, obviously, there's thatat will employment statement,
which is pretty important.
The one I talked about earlier.
Um, also having an antiharassment policy is important.
There are a number of jurisdictionsthat require employers to maintain
that written policy on preventingharassment in the workplace.
(07:32):
And even if your jurisdiction doesn'trequire a written policy, it's a
best practice to have one, and thehandbook is a great place to put it.
Another important policy to haveis an anti discrimination policy.
Uh, federal, state, and local lawsprohibit employers from discriminating
against applicants and employees becauseof protected characteristics such as age
(07:52):
and race, sex, religion, among others.
And some jurisdictions require apolicy addressing discrimination.
So again, even without the requirement,it's a best practice to have that policy.
And a great place to putit is in your handbook.
Also leave and time off policiesare important to have in the handbook.
Um, and lastly, I wanted to mention havinga policy on reasonable accommodations.
(08:13):
So, under certain laws, employers haveto provide reasonable accommodations
to qualified applicants andemployees with a disability or with
a sincerely held religious belief.
Um, unless providing that accommodationwould cause an undue hardship.
Some jurisdictions also have lawsthat require accommodations for
pregnancy related conditions,and some of these laws require
(08:34):
employers to have a written policy.
It's really a best practice to havean accommodations policy, even if
it isn't required, and your handbookis really a great place to house it.
Jim (08:44):
Excellent, Meryl.
Thank you for that additional information.
So, as always, you've shared usefulinformation for our listeners, and this
brings us to the end of this episode.
And again, thank you for joiningus again today at HRpreneur.
So, as I typically do, Meryl,
I've taken a few notesduring our conversation.
So, uh, let me recap and please letme know if I've missed anything.
Um, employers should maintainan employee handbook because it
(09:06):
can help in a couple of ways.
First, it can help formalize policies.
It can help meet state andlocal policy requirements.
It can support the onboarding process.
It can guide employment decisions.
It can reinforce the at willstatus that you discussed.
And lastly, it can help informemployees where to go if they
have any questions or concerns.
Did I miss anything?
Meryl (09:26):
No, I think you got it.
That was awesome.
Jim (09:28):
Great.
Thank you.
Presented by ADP, HRpreneur focuseson the entrepreneurs and business
drivers who are shaping the growthof their companies and positively
impacting the lives of their employees.
With each episode, we'll bring the expertsto you, we'll answer your questions
and help you think beyond today so youcan discover more success tomorrow.
Thanks also to our listeners forjoining us for today's episode.
(09:48):
Take care, and we hopeyou'll join us again soon.
An employee handbook is one of the most important documents
an employer can maintain, butwhy is it considered essential?
During this podcast, we'll coversix reasons why and dive into
how an employee handbook can helpyour business and your employees.
Welcome to HRpreneur.
I'm Jim Duffy.
From Main Street to yourstreet, the HRpreneur podcast.
Is centered around helping smallbusinesses like yours gain the knowledge
(00:22):
you need from hr, payroll, and hiringto time taxes, benefits, and insurance.
Today we'll talk with our guest MerylGutterman about employee handbooks.
Meryl is Senior Counselwith ADP's HCM Group.
Meryl.
Hello.
It's great to have youback on our podcast.
Meryl (00:37):
Hi, Jim.
Thanks for having me.
It's great to be back here.
Jim (00:41):
So we are about to talk about a very important topic, and I, again, thank
you for helping us understand why anemployee handbook is considered essential.
Sometimes employers aren't sure why theyshould maintain an employee handbook,
especially small business employers.
Can you start us off with areason for why a written employee
handbook is considered essential?
Meryl (01:02):
Sure.
So first it can helpformalize company policies.
Most companies have policies that governtheir employment practices, but sometimes
small businesses especially maintain thesepolicies informally, whether it's in a
separate document or even just repeatingpolicies verbally when situations arise.
(01:22):
And this can lead to inconsistentapplication and confusion about
both employer and employeerights and responsibilities.
So if you have an employee handbook,that can help you formalize those
policies so employees have a centralwritten resource that they can
go to to read and to reference.
Jim (01:40):
So Meryl, can you please help us understand why an employee
handbook can help meet state andlocal policy and notice requirements?
Meryl (01:47):
Well, there are various laws that require employers to provide certain
information to employees in writingand an employee handbook can be the
vehicle to help employers effectivelydisseminate that required information
and fulfill these requirements.
So, for example, thereare a growing number of states
that are requiring employersto maintain a written policy on
(02:07):
preventing harassment in the workplace.
And this includes California where allemployers have to develop and disseminate
a written harassment, discrimination,and retaliation prevention policy.
And California also requires manyemployers to have a written policy
on preventing workplace violence.
So while there's no law thatrequires you to have a written
(02:29):
employee handbook, if you do haveone, it can help you meet other
compliance obligations that you may have.
Jim (02:36):
So Meryl, can you clarify something for me?
You mentioned that no law requiresemployers to adopt an actual
employee handbook, but Aren't therelaws that require certain policies
be included if the employer doesindeed have an employee handbook?
Meryl (02:49):
Yes, there are.
Employers may be required by stateor local law to include certain
policies in their employee handbookif they do maintain that handbook.
So, for example in Colorado, everyemployer with a handbook must include a
copy of the Colorado Overtime and MinimumPay Standards order or a COMPS order
(03:10):
poster in it.
Also in Colorado, employers that requireemployees to sign the handbook must
have the employee sign an acknowledgmentof being provided with that COMPS
order or that COMPS order poster.
Jim (03:24):
So I understand another reason to have an employee handbook is to
help support the onboarding process.
So with a new hire's first days,weeks, and months being such a critical
period of the employment relationship,how can the employee handbook help?
Meryl (03:38):
Well, an effective employee handbook can help the onboarding process
by introducing new employees to yourcompany, to your culture and your values.
And if it's well written and organized,it can also let your employees
know what they can expect from youand what you can expect from them.
So for example, you can use the handbookto communicate important workplace
policies, rules, procedures, and eventalk about benefits information as well.
Jim (04:03):
So that's a great point.
And Meryl, if you don't mind,let's move on to the next reason,
which is that a handbook canhelp guide employment decisions.
Can you expand a little bit on this one?
Meryl (04:12):
Sure.
A handbook can also serve as a guidefor managers and employees regarding how
the company addresses workplace
issues and questions.
Also, it can help demonstratefairness when policies are applied
and enforced consistently, and italso may help you justify or defend
certain employment decisions.
Jim (04:30):
So Meryl, another reason to have a handbook is to reinforce
an employee's at will status.
Can you please explain what isat Will status and how can the
employee handbook help reinforce it?
Meryl (04:41):
Absolutely.
So at will employment generally meansthat absent certain exceptions, such
as an implied contract or publicpolicy, either the employer or the
employee can terminate the employmentrelationship at any time for any reason,
as long as that reason is a lawful one.
Most employment is considered at will,and you can use your handbook to reinforce
(05:03):
this with your employees by prominentlydisplaying an at will statement in the
beginning of your employee handbook, andthen also restating at will status in
your handbook acknowledgment as well.
I will add here that there's an exceptionto this general rule in Montana.
Where at will employment is notrecognized, you'll also want to make
sure that you avoid policies in yourhandbook that might create confusion
(05:26):
about at will status, such as policiesthat might restrict your ability
to decide what type of disciplinewould be appropriate if there were
a violation to a workplace rule.
So instead, in your workplace conductpolicies, you want to make it clear that
violations may result in disciplinaryaction, up to and including termination,
and that the company reserves the rightto decide what disciplinary action to
(05:49):
take in any given situation, consideringthe severity of the offense and the
employee's history of misconduct.
Keep in mind, however, thattreating employees fairly is key,
and similar situations and pastpractices should guide and impact the
disciplinary action that you take.
Jim (06:06):
Thank you for clarifying that, Meryl.
The last reason I wanted to cover is thatthe handbook informs employees where to
go if they have questions or concerns.
Can you please tell uswhy this is important?
Meryl (06:18):
Sure.
So, an employee handbook can be one ofthe most effective ways to communicate
with employees, and this includesinforming employees where to go if
they have those questions or concerns.
Throughout the handbook, you can makesure that you're including contact
information for the individual
to whom the employee should direct theirquestions about the employee handbook and
any of the policies that are within it.
(06:39):
And also, if you have an employeewho is making a complaint about
violating the policy, they shouldhave the information about who they
can contact to make that complaint.
And then finally, where states and localjurisdictions require certain policies,
they may also require employers toinclude information on where employees
can file complaints with the jurisdictionabout those alleged violations.
Jim (07:03):
So, Meryl, before we wrap up, could you please provide us with some
examples of policies that are consideredmust have for employee handbooks?
Meryl (07:11):
Sure.
Let me give you a few.
There are many more, but these arethe ones that come to mind first.
So, obviously, there's thatat will employment statement,
which is pretty important.
The one I talked about earlier.
Um, also having an antiharassment policy is important.
There are a number of jurisdictionsthat require employers to maintain
that written policy on preventingharassment in the workplace.
(07:32):
And even if your jurisdiction doesn'trequire a written policy, it's a
best practice to have one, and thehandbook is a great place to put it.
Another important policy to haveis an anti discrimination policy.
Uh, federal, state, and local lawsprohibit employers from discriminating
against applicants and employees becauseof protected characteristics such as age
(07:52):
and race, sex, religion, among others.
And some jurisdictions require apolicy addressing discrimination.
So again, even without the requirement,it's a best practice to have that policy.
And a great place to putit is in your handbook.
Also leave and time off policiesare important to have in the handbook.
Um, and lastly, I wanted to mention havinga policy on reasonable accommodations.
(08:13):
So, under certain laws, employers haveto provide reasonable accommodations
to qualified applicants andemployees with a disability or with
a sincerely held religious belief.
Um, unless providing that accommodationwould cause an undue hardship.
Some jurisdictions also have lawsthat require accommodations for
pregnancy related conditions,and some of these laws require
(08:34):
employers to have a written policy.
It's really a best practice to havean accommodations policy, even if
it isn't required, and your handbookis really a great place to house it.
Jim (08:44):
Excellent, Meryl.
Thank you for that additional information.
So, as always, you've shared usefulinformation for our listeners, and this
brings us to the end of this episode.
And again, thank you for joiningus again today at HRpreneur.
So, as I typically do, Meryl,
I've taken a few notesduring our conversation.
So, uh, let me recap and please letme know if I've missed anything.
Um, employers should maintainan employee handbook because it
(09:06):
can help in a couple of ways.
First, it can help formalize policies.
It can help meet state andlocal policy requirements.
It can support the onboarding process.
It can guide employment decisions.
It can reinforce the at willstatus that you discussed.
And lastly, it can help informemployees where to go if they
have any questions or concerns.
Did I miss anything?
Meryl (09:26):
No, I think you got it.
That was awesome.
Jim (09:28):
Great.
Thank you.
Presented by ADP, HRpreneur focuseson the entrepreneurs and business
drivers who are shaping the growthof their companies and positively
impacting the lives of their employees.
With each episode, we'll bring the expertsto you, we'll answer your questions
and help you think beyond today so youcan discover more success tomorrow.
Thanks also to our listeners forjoining us for today's episode.
(09:48):
Take care, and we hopeyou'll join us again soon.
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