Many companies have an employee handbook, but most handbooks have room for improvement. There is no one-size-fits-all formula. There are, however, a number of best practices that can help employers of all sizes maximize the positive impact of this often-overlooked human resources tool.

Employee handbook must-haves

No two handbooks are the same, just as no two companies are the same. The contents of an employee handbook will be driven by a variety of factors such as the size of the business, the type of business (e.g. manufacturing, sales, professional services, etc.), the states where the company has employees and the corporate culture. Regardless, there are certain provisions that should be part of every employee handbook.

Robust anti-discrimination, harassment and retaliation policies

Simply stated, federal law requires companies with 15 employees or more to prevent workplace discrimination, harassment and retaliation. For that reason alone, every handbook should make clear the company's policy on these issues. This begins with a prohibition on unlawful discrimination based on any category protected by law—including race, color, sex, religion, national origin, disability, age, and genetic information. An anti-discrimination policy should list specific areas where discrimination will not be tolerated—such as hiring, training, terms and conditions of employment, promotion, discipline and discharge.

Harassment that is based on a protected category such as sex is a form of unlawful discrimination. An anti-harassment policy should first explain the types of behavior that are prohibited (unwelcome touching, comments, jokes, pictures, etc.) Second, the harassment policy should list the people/departments (managers or human resources professionals) where employees can go to report harassment. The policy should lay out the procedure for investigating harassment complaints, including the company's strict anti-retaliation rule, and the fact that investigations will be kept confidential to the extent practicable.

Anti-discrimination policies that are well written and enforced serve the important purpose of promoting a corporate culture of professionalism, respect, and inclusion. Moreover, written evidence of a company's efforts to "do the right thing" can be a powerful tool when defending against such claims.

Timekeeping and overtime

Companies with employees who are subject to the minimum wage and overtime rules of the Fair Labor Standards Act (almost all of them), need a policy explaining that non-exempt employees will be paid overtime at the rate of time and a half their regular rate for all hours worked over 40 in a week. Non-exempt employees should be instructed to keep track of all hours worked, and required to obtain permission before working overtime.

Work rules and discipline

The need for a discipline policy is two-fold. First, the best way to ensure that employees follow the same set of rules is to set them down in writing. If everyone knows what is expected, most employees will try to comply. It is only fair that these expectations be documented in one place, where everyone has access to them.

Second, when the procedures for addressing violations are set forth in writing, supervisors will know what to do when someone breaks the rules. And, employees with prior notice of expectations and consequences are less likely to argue that they have been treated unfairly.

Time off and benefits information

Every employee wants to know how much vacation/sick time/PTO they get, and how many paid holidays there are. Having this information in one place will ensure that everyone knows the rules, promoting consistency in application which will reduce headaches for the human resources department. The same is true with respect to employee benefits such as health insurance, short- and long-term disability, retirement and other perks.

How to get the most from your employee handbook

Employees should receive the handbook at new hire orientation and be trained on essential policies such as anti-discrimination/harassment/retaliation, timekeeping and work rules/discipline. New employees should sign acknowledgments of receipt, and the acknowledgments should be kept in their personnel files.

Some companies provide hard copies of the handbook, and others make it available on-line. In either case, the handbook should be easy to access, user-friendly, and organized with a table of contents.

As new policies are created and old ones revised or eliminated, the handbook should be updated to reflect the changes. If the handbook is a hard copy document, new policies can be added as they come along. If the handbook is maintained on-line, the revisions can be incorporated into the existing document. In either case, the entire handbook should be reviewed, revised as needed, and re-issued every three years. Changes should be highlighted with refresher training, and all employees should sign a new acknowledgment of receipt.

By following these steps, employers can optimize the effectiveness of their employee handbooks.

Michelle W. Johnson is partner at Nelson Mullins Riley & Scarborough LLP in Atlanta, Ga., practicing in the areas of labor and employment law, business litigation and appellate work.

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