Employee handbooks are important and useful tools that relay relevant and important company procedures and policies to employees.

They explain an employer’s expectations from their employees while setting forth an employee’s rights and expectations as well.

Although not required by any state or federal laws, a properly drafted employee handbook can be a great tool for any business. Recognizing the importance of employee handbooks can help take your business to the next level.

There are both legal and non-legal incentives to create an employee handbook.

They can create a harmonious employer-employee relationship where discrimination, harassment, wrongful termination and other discipline policies are laid out while also covering ordinary company procedures regarding holidays, sick days and vacation days.

Consider the following information before creating your own employee handbook.

1. First Impressions Last Forever

Most importantly, remember that an employee handbook is your first opportunity to speak to your new employees.

Employees receive these books either at their orientation or their first day on the job, giving employers a good opportunity to showcase their company strengths, values and expectations.

Because finding quality employees can be difficult, employers should invest in attracting good employees by offering benefits and incentives that can be showcased in their handbooks.

For example, a company that values public interest work and giving back to the community can highlight that in their handbooks and attract employees interested in the same field.

2. Importance of Employee Handbooks For At-Will Employment

Almost always, a handbook will include an “at-will” disclaimer that informs employees that their employment relationship is completely at-will and not contractual. Meaning, an employee has the right to quit whenever he or she wishes, while the employer has the right to terminate the employee for a lawful reason, with or without notice.

It is important to place this disclaimer at the beginning of the handbook in clear text to avoid any confusion that may arise during the employment.

Often times previous employees claim that their employers have breached an “implied contract” of continued employment.

An employer can rebut the allegations by providing a copy of the handbook that outlines the terms of the employment.

3. Anti-Discrimination and Harassment Policies

Discrimination and harassment claims are a huge and expensive trend in the workplace.

Specifically, many employees file claims of sexual, racial and gender harassment against their employers and fellow employees. Therefore, it is critical to provide reporting procedures, disciplinary actions and outline what harassment and discrimination is in your handbook.

The Supreme Court has held that in both discrimination and harassment suits, employers can only defend themselves if they have a complaint procedure in place.

That is, a well documented policy that outlines what steps must be taken to file a complaint against the harasser or discriminator. Without such policies, employers are limited and sometimes barred from raising a defense.

This should also include information on how an employee must report any claims of harassment or discrimination to their superiors including human resources, supervisors or other superiors.

Because any of the above mentioned can be the harasser, it is imperative that employees have an option, rather than being required to report the abuse to a specific individual.

To ensure employees will report workplace abuse, employers should include a non-exhaustive list of examples and information defining and illustrating  both discrimination and harassment.

In addition, employers should send a clear message that the company does not tolerate any form of abuse.

Lastly, it is important to note that reporting any workplace abuse will not lead to termination of employment or retaliation. Employees should feel safe to report any unlawful conduct.

4. Compensation & Hours

Your employee handbook should cover the employee’s compensation benefits and review your policy on scheduling work hours, pay schedules, salary increases and bonuses.

Furthermore, include information about your company’s policy on punctuality, overtime pay and scheduling flexibility.

Explain both mandatory paycheck deductions for Medicare, FICA and Social Security taxes and voluntary ones such as pension benefits to avoid any confusion.

Although there are both state and federal rules governing paid leaves of absence, the laws differ from state to state.

Some states require employers to provide leaves of absence for pregnancy, disability, rehabilitation and other situations. Be sure to include your company’s policy in the handbook.

Remember, do not underestimate the importance of employee handbooks. It is a communication device between an employer and his or her employees.

Use the handbook as a tool to express your company’s values, policies and procedures.

It is important to note however, in the case of a legal dispute, an employee can claim that he or she never received a copy of the handbook.

To ensure a conflict does not arise, make sure to receive a signed notice from each employee that he or she has read and agrees to the terms of the employee handbook.

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