One of the key steps to creating an effective employee handbook is determining what policies to include. Some laws require employers to provide information to employees via a written policy. Policies are also important for communicating company expectations and requirements. Here are several policies that are considered must-haves for employee handbooks.
At-will employment
This statement reiterates that, absent certain exceptions such as an implied contract or public policy, either you or the employee can terminate the employment relationship at any time and for any reason, as long as the reason is a lawful one. It's a best practice to prominently display this statement in the beginning of your employee handbook (except in Montana, where at-will employment isn’t recognized). Reinforce at-will status in your handbook acknowledgment form as well.
Anti-harassment
A growing number of jurisdictions are requiring employers to maintain a written policy on preventing harassment in the workplace. Keep in mind that your state or local law may require specific information to be included in the policy, such as how employees may file complaints with the state or local agency.
In several jurisdictions, state and local agencies and case law recommend that employers adopt a written anti-harassment policy. Even if your jurisdiction doesn't require a written policy, it's a best practice to have one.
Nondiscrimination
Federal, state, and local laws prohibit employers from discriminating against applicants and employees on the basis of certain protected characteristics, such as age, race, sex, and religion, among others. Some jurisdictions require a policy addressing discrimination. Even in the absence of a requirement, it's a best practice to have a policy that includes all characteristics protected under federal, state, and/or local laws.
Employment classifications
It's a best practice to clearly define employment classifications, such as full-time, part-time, exempt or non-exempt since an employee's classification can dictate eligibility for benefits and overtime pay.
Leave and time off benefits
These policies address company rules and procedures related to holidays, vacation, or leave required by law (such as sick leave, voting leave, family leave, and domestic violence leave). Some leave laws may require a written policy. Check your state and local law to ensure all leave requirements are included in your employee handbook.
Meal and break periods
A policy on meal and break periods informs employees of the frequency and duration as well as any rules or restrictions related to break periods. Rest periods, lactation breaks, and meal periods must be provided in accordance with federal, state and local laws. Check back for our Tip of the Week on break periods.
Timekeeping and pay
Among other the things, the policy should direct non-exempt employees to record all of the time they work and expressly prohibit off-the clock work (however, if employees do perform off-the clock work, you must pay them for this time). Require non-exempt employees to confirm their work hours at the end of each pay period and inform them that they should report any errors in their time record immediately. A policy on paydays should let employees know the frequency of paydays, the methods available for receiving pay, and any special procedures for when a payday falls on a holiday or when an employee is absent from work.
Employee conduct, attendance, and punctuality
Attendance policies make it clear that employees must be ready to work at their scheduled start time each day and provide procedures for informing the company of an unscheduled absence or late arrival. It's also a best practice to have policies on standards of conduct, drug and alcohol abuse, disciplinary action, confidentiality, conflicts of interest, and workplace violence.
Reasonable accommodations
Under certain laws, such as the Americans with Disabilities Act, Pregnant Workers Fairness Act, and Title VII of the Civil Rights Act, employers must provide reasonable accommodations to qualified applicants and employees with a disability, pregnancy, or with sincerely held religious beliefs and practices, unless doing so would cause undue hardship. Some states have similar requirements that apply to smaller employers, and some states and local jurisdictions have laws that require accommodations in additional circumstances. Some of these laws also require employers to have a written policy on reasonable accommodations. It’s a best practice to have a policy in your handbook even if it isn't required.
Conclusion
With federal, state, and local laws as your guide, make sure you carefully consider what policies to include in your employee handbook.