In a court of law, your employee handbook can and will be used against you. “A lot of employers recognize that handbooks are important,” says HR Specialist, Dianne Boasso. “Unfortunately, they don’t treat it as a priority or take it seriously until they’re facing an audit from the Department of Labor or employment claim from a worker —and by then it’s too late.”

Employment lawyers agree.

“A well-written handbook is vital to a company’s risk mitigation strategy,” says employment attorney Andrew Pepper of Jackson Lewis. “Skimping on a handbook is a really bad idea that inevitably will come back to haunt a corner-cutting employer.”

Handbooks that are carefully drafted, detailed, up-to-date, and tailored to internal policies are a company’s first line of defense against litigation and liability.

Sherrie Course, simplicityHR Handbook Specialist, with over 20 years of HR, benefits, and payroll experience, advises businesses to be cautious about what is and is not included in their employee handbook.

What to include in your employee handbook

1. The essentials. Your employee handbook should document company policies that guide employees on questions they may have about their employment. Among the top policies that should be documented include:
   • Rules of conduct
   • At-will disclaimer
   • Zero-tolerance policies such as anti-discrimination and anti-harassment
   • Leave policies
   • State and Federal regulations
2. Common sense policies. Even workplace rules that seem like common sense need to be documented. For example, if an employee is fired for sleeping on the job and files a claim for unemployment insurance benefits, the ruling could go in favor of the employee if your company doesn’t have a written policy against it.
3. State and local employment laws. In addition to federal employment laws, your employee handbook should document local and state specific laws. In many cases, Hawaiʻi laws are stricter and more stringent than federal law.

What NOT to include in your employee handbook

1. Words that can be construed as a promise. Words that can be construed as a promise should only be used where that’s the intention (e.g., violation of a zero-tolerance policy will be cause for disciplinary action). On the other hand, a company should not “promise” things like progressive discipline, annual performance reviews, or increases if that’s not the actual practice.
2. Contractual documents. This includes arbitration and non-compete agreements which should be separate forms requiring their own acknowledgment signatures. Policies such as substance abuse and confidentiality are acceptable for inclusion.
3. Standard Operating Procedures (SOP). Firing an employee for poor attendance can backfire if the handbook promises that managers will take steps X, Y, and Z before labeling an absence as unexcused.

Finally, make sure you get the handbook acknowledgment signed by every new employee. This is a vital component of every employer’s risk control strategy.

“Some employers spend the money on having a good handbook drafted and then do not pay attention to the need to prove that their employees have seen and acknowledged it,” says Pepper. “In such cases, you have a beautiful and elegant handbook that is the legal equivalent of one hand clapping.”

Review your employee handbook regularly

At minimum review and update your employee handbook once a year. Update your employee handbook immediately when:

• New legislation is passed (e.g., wage laws, leave entitlements)
• Company structure or leadership changes
• New technologies or work models are introduced
• There are significant cultural or operational shifts

Drafting and updating an employee handbook can be confusing and stressful. When you work with simplicityHR, you gain access to our experienced and knowledgeable HR and Handbook Specialists who ensure your company is covered.