How to Create and Enforce Effective Employee Handbooks

Spending the time to create and maintain an employee handbook is one of the best investments you can make in your business. With few exceptions, employers are not legally required to distribute any specific policies to their workforce. However, companies that fail to maintain a uniform set of employment policies do so at their own peril. 

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An employee handbook protects both you and your employees by providing a structure for handling workplace issues and ensuring policies are applied consistently across your organization. To maximize the protections that a handbook offers, employers are well-advised to conduct regular audits and updates to existing policies to ensure compliance with ever-changing employment laws and regulations. 

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While employers may be tempted to develop handbooks on their own, this project is best handled by an attorney with the qualifications to recognize the benefits and legal pitfalls of each policy. Strauss Troy’s specialized Labor & Employment attorneys have the experience to craft a tailored policy that meets your business’s unique needs.

Company Manual vs. Employee Handbook

Both company manuals and employee handbooks are important sources of information for employees. However, they are substantially different in the type of information they contain. A company manual provides a standard operating procedure focused on detailed instructions on how specific employees should accomplish job tasks. A company or employee handbook, on the other hand, outlines the company culture, policies, and information generally applicable to all or most employees. Just like company manuals can help your employees tackle their day-to-day tasks with efficiency and predictability, employee handbooks establish companywide standards and help your organization run as consistently as possible.

What Should an Employee Handbook Cover?

An effective employee handbook will explain what standards employees should expect from their time with your organization and how the employer will respond to problems in the workplace—whether that be employee performance issues, claims of harassment, or disputes about employee benefits. 

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Organizations drafting an employee handbook will typically consider some or all of the following:

• Employment Status: Are your employees at-will? What contractual rights are created by your employment policies, and do you need disclaimers regarding any contractual rights your employees may claim? 
• General Employment Logistics: Are there specific policies regarding work scheduling or attendance? Does your employee dress code discriminate against any employee based on their gender expression, religion, or race? Is there a standardized protocol for the use of company devices?
• Employee Benefits: Are employees properly informed about statutorily required meals or breaks? Is there a detailed paid time off (PTO) policy? If an organization is subject to the Family and Medical Leave Act (FMLA), are your employees adequately informed about their rights to FMLA leave? If you employ tipped workers and wish to implement tip sharing or tip pooling, do you have a written policy that properly documents that arrangement? Do your employees have comprehensive explanation of employer-provided health insurance, retirement plans, expense reimbursement, or any other employee benefits?
• Employer Performance and Discipline: Is there a set standard and frequency of performance evaluations and performance improvement plans? What procedure is in place for reporting employee misconduct and conducting disciplinary investigations? 
• Ethical Interests: What are your employees’ responsibilities regarding the use and misuse of confidential or propriety information? How do employees identify and prevent conflicts of interest? Are your employees covered by Whistleblower laws?
• End of Employment: What is the expected process for resignation and termination of employment in your organization?

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Legal Benefits of an Employee Handbook

While a handbook benefits new employees by introducing them to company-wide procedures and company culture, it holds even greater value for employers. Handbooks and company policies reduce legal risks for organizations and can minimize an employer’s exposure to claims based upon employee misconduct or mistreatment. Relevant handbook policies frequently come into play (and can help avoid) legal claims, including:

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• Unfair or Discriminatory Treatment
• Failure to Provide Disability or Religious Accommodations
• Wrongful Termination
• Hostile Work Environment or Quid Pro Quo Harassment 
• Retaliation for Protected Work Activities
• Wage and Hour Disputes
• Breach of Implied Contract
• Unemployment Defense

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For example, harassment policies in employee handbooks should detail the specific types of behavior that can constitute harassment or retaliation under state and federal law, such as termination, demotion, or creating an offensive or abusive environment based on protected characteristics. Any employee handbook should also include both (a) the procedure for an employee to file when reporting a complaint of harassment or retaliation and (b) the employer's responsibilities when enforcing workplace anti-harassment policies.  

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An employer with a comprehensive discrimination reporting policy is better protected from lawsuits. Ideally, these policies ensure that instances of harassment, abuse, and retaliation are reported, properly investigated, and efficiently addressed—minimizing any legal basis for a harassment or retaliation claim in the first place. If a dispute does arise, a thorough harassment and retaliation policy will demonstrate that your organization has taken steps to inform employees of their rights and responsibilities, which can aid your defense and help quickly resolve a legal claim.

Keeping your Handbook Current

Employee handbooks must reflect up-to-date state and federal employment laws, especially those related to anti-harassment, discrimination, sick leave, wage-and-hour disputes, and workers' compensation policies. Failing to update your employee handbook as employment laws evolve can expose your business to unnecessary liability. Outdated policies often become the basis for costly disputes, government audits, and employee claims that could have been prevented with proactive updates. If your handbook doesn’t keep up, your company risks noncompliance, inconsistent practices, and employee confusion. 

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A well-maintained handbook is one of the simplest, most effective safeguards against legal exposure. Conduct regular policy audits to review labor and employment regulatory resources, professional organizations' publications, and news updates to reflect changes in applicable employment law. Resources that can provide updated information on specific employment laws include:

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• U.S. Department of Labor (DOL)
• Equal Employment Opportunity Commission (EEOC)
• Ohio or Kentucky state labor agencies
• Society for Human Resource Management (SHRM)
• HR Compliance Consultants

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Checking with these government and regulatory agencies and professional associations—or  partnering with experienced labor and employment legal professionals—will help ensure that your policies contribute to a culture of trust, clarity, and compliance while protecting your business.

Enforcing Your Handbook’s Policies

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The best policy will only work if people know about it! Make sure that the handbook is available to everyone, either in a physical or digital format that your employees know how to access. When compiling an employee handbook, employers should ensure that each employee signs an acknowledgement to demonstrate that they have received, read, and understand the organization’s goals and expectations. Companies should make sure that individuals involved in responding to employee disputes have received, understand, and fully implement its handbook policies consistently across your organization. 

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Employers should provide training sessions that explain the policies in detail and answer employee questions about their implementation. As part of this training process, employers should encourage supervisors and managers to enforce employment policies with consistency and to keep thorough records of policy violations, investigations, and any disciplinary actions.

Protect Your Business with a Legally Sound Employee Handbook

A well-crafted handbook is more than a guide—it’s your first line of defense against disputes and compliance issues. At Strauss Troy, our Labor & Employment attorneys help businesses craft clear, enforceable handbooks tailored to their industry and workforce. 

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Don’t wait until there's a problem. Partner with us to ensure your handbook protects your employees and your business. Contact Strauss Troy today to get started.

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Image source: Shutterstock / Stock 4you

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