Employee Handbooks

An employee handbook is a manual or document that provides information about the company's culture, policies, and procedures. It is given to employees to familiarize them with the company's expectations and guidelines.  The content of an employee handbook can vary based on the company's size, industry, and location.  Employee handbooks should be regularly reviewed and updated to reflect changes in company policies, procedures, and applicable state and federal laws.

Employee handbooks generally include the following sections:

1. Introduction: This might include a welcome note, the company's mission, vision, values, and a brief history of the company.
2. Code of Conduct: Details on expected behavior, dress code, punctuality, and other standards of professionalism.
3. Equal Opportunity and Non-Discrimination: Policies that emphasize the company's commitment to fairness and equality, including procedures to report and handle discrimination or harassment.  Employers may be required by law to provide these policies to employees, whether they have a handbook or not.
4. Workplace Policies: This could cover topics like attendance, punctuality, breaks, telecommuting, acceptable use of technology (including company-owned technology, such as computers and mobile devices), representing or mentioning the company on social media, and more.
5. Compensation:  Overtime policies, pay periods, paydays, bonuses, and other related information.
6. Benefits: Information on health insurance, retirement plans, paid time off, holidays, and other benefits offered by the company.
7. Leave Policies: Details about vacation days, sick days, parental leave, and other types of leaves, such as bereavement or sabbatical.
8. Health and Safety: Guidelines to ensure safety at the workplace. This might include emergency procedures, reporting injuries, and workplace security policies.
9. Confidentiality and Non-Solicitation: Information on protecting the company’s proprietary information, and restrictions on soliciting employees and clients.
10. Separation and Return of Company Property.
11. Acknowledgment Form: Often, the last page of the handbook is an acknowledgment form. Employees sign this to confirm that they've received, read, and understood the contents of the handbook.

Depending on the jurisdiction and the size of the employer, there may be an obligation to provide employees with specific information regarding anti-harassment policies and certain protected leave policies (such as family and medical leave, pregnancy disability leave, sick leave, and more).  California, Massachusetts, and New York, for example, require the inclusion of specific policies.  Employers with employees in multiple states may wish to issue a national handbook that complies with federal regulations, and then attach state-specific addenda.

While private employers are not required to provide a formal employee handbook, handbooks can play an important role in establishing company culture, and educating employees on their job-related obligations, rights, and benefits.  Outlining company policies and expectations can also serve as a layer of legal protection in case of disputes. For example, if an employee claims they were unaware of a particular company policy, the employer can refer to the handbook.

Reasons for providing an employee handbook include (but are not limited to):

1. Onboarding Tool: For new hires, the handbook serves as a comprehensive guide to understanding company culture, policies, and benefits. It can help in the orientation process, ensuring a smoother transition for the new employee.
2. Company Culture and Values: An employee handbook is an excellent tool for communicating the company's mission, vision, and values. By understanding the company's culture, employees are more likely to align their behavior and decisions with that culture.
3. Clarity on Policies and Procedures: An employee handbook provides a central reference for all company policies and procedures. This ensures that every employee has access to the same information, leading to consistency in understanding and application.
4. Set Expectations: It defines what is expected in terms of behavior, performance, and conduct. This can help reduce ambiguity and confusion among employees. Further, when employees know what to expect and feel they are treated fairly and consistently, it can lead to increased trust and a stronger relationship between them and the company.
5. Reflect Regulatory Compliance: By documenting and following policies that adhere to local, state, and federal laws, the company shows its commitment to compliance, which can be crucial during audits or inspections.
6. Legal Protection: As mentioned above, handbooks can play an important role if an employee claims they never knew about certain policies or requirements.

An employee handbook is more than a set of rules; it’s a foundational document that communicates the company's values, expectations, and commitment to its employees. For new companies especially, setting the right tone from the start can lead to increased productivity, reduced conflict, and a more harmonious workplace.

 

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Disclaimer: This article is an informative guide, not a substitute for specific legal counsel. Always consult with a qualified legal professional for particular legal concerns. 

Legal Disclaimer: Gunderson Dettmer Stough Villeneuve Franklin & Hachigian, LLP (“Gunderson”) has provided these materials for general informational purposes only and not as legal advice. Our provision and your use of these materials do not create an attorney-client relationship between Gunderson and you.  These materials may not reflect the most current legal developments and knowledge, and accordingly, you should seek legal counsel before using or relying on these materials or the information contained herein. Gunderson assumes no responsibility for any consequences of your use or reliance on these materials.