When do I need an Employee Handbook?

The critical issue to consider is at what point your company has sufficient employment liabilities to warrant an Employee Handbook.

• If you have 1 – 4 employees, there are minimal complex laws in effect. At this point, a memo containing policies on at-will employment, hours of work and attendance, paid time off, and paydays should be sufficient.

• At 5 – 14 employees, several federal and state leave laws are triggered. Therefore, a basic Employee Handbook may provide clarity.

• At 15+ employees, generally accepted professional opinion is that a comprehensive employee handbook is necessary.

Why do I need an Employee Handbook?

• In the absence of written policies, past actions become policy. Since many of these practices can be discriminatory due to a lack of consistency, your company is in greater danger of law suits than if you have thought out your practices in advance.

• Handbooks can help create a high quality of work life.

• Effective and healthy relationships require a two-way commitment. Therefore, it is good business to clearly communicate what you expect of your people and what they can expect in return.

• Avoiding misunderstandings should lead to avoiding litigation.

• When disciplining employees, sighting Employee Handbook excerpts lends credibility.

• Some rules and policies are required by federal or state law. Formalizing these requirement in writing can protect your business by ensuring consistent compliance.