Joycelyn Stevenson is office managing shareholder in the Nashville office of Littler.
Toward the end of the year, we typically see an uptick in handbook inquiries as businesses prepare for policy updates and seek compliance with recent legal changes.
Amid the ever-changing federal and state regulatory landscape, a well-crafted handbook serves as a centralized resource for employees to understand a company’s mission, policies and procedures.
However, not every policy belongs in a handbook—some are better suited as standalone documents. Additionally, handbooks are not “one size fits all”; each organization requires a tailored approach, so companies with questions should consult a professional to determine the best fit for their needs.
Below are the top five questions I most often receive from clients during this time of year as they create or revise their employee handbooks.
1. What are some important policies to include in an employee handbook?
This answer may vary depending on the state, but employers should have language explicitly prohibiting discrimination and harassment and a process for reporting and investigating those claims.
Additionally, it is recommended that handbooks include language related to leave requests and medical and religious accommodations, including a clear process for making those requests.
Finally, include language related to workplace conduct rules, including any guidance on how discipline and other types of corrective action may be taken by the employer. Honorable mention goes to pay practices, at-will employment language and language on benefits. If you have operations in a state with employee-friendly laws, check all laws that require specific notifications that often appear in handbooks such as paid sick leave or specific workplace posters.
2. How often should I update my handbook?
The recommended practice is to establish a consistent timetable for making updates. Employers should review handbooks at least annually and depending on your industry, you may want to consider reviewing every six months or at least setting alerts for potential changes in federal or state law that might impact your existing workforce policies.
Many companies have drafts of handbooks sitting on the shelves but currently operate under ones that are obsolete. Regular updates help ensure the company is responsive to changes in the law and that employees are managed appropriately.
3. Should I have multiple handbooks if I have employees in at least one other state?
It depends on the specific location and in some instances, the city where you conduct business. Many company handbooks can have carve-out language for other states and some companies choose to have a completely different supplement to meet the requirements under state and local employment law.
There should be some consideration as to whether employees in other states are subject to specific requirements related to handbooks and employee notice. For example, several states like California, New York, Illinois and Massachusetts have specific requirements that typically appear in employee handbooks. Illinois and California also have city-specific requirements that should be taken into consideration in any handbook draft.
4. Should I have a clear reporting process for managing complaints or concerns?
This is one of the most important aspects of any handbook because it provides management employees with a clear roadmap for addressing concerns with clearly assigned roles designated to taking complaints and investigating them promptly and efficiently. It also sets expectations for non-management employees on what to expect when they raise concerns. The policy must be clear on how a complaint will be managed, and individuals should not be required to report a complaint to a person who is the alleged wrongdoer.
Employers should also provide clear direction, typically in consultation with a board or other governing body, on how to manage complaints of an individual at the C-Suite level, including a president or CEO.
5. How should companies communicate handbook changes to employees?
Updates to company policies and practices must be communicated to employees. Employers should track that all employees receive and sign an acknowledgment of receipt. If possible, host a meeting with employees to review updates and address questions. Having a memo or other explanation summarizing key changes is also helpful. Employers may want to consider separate meetings with HR and senior leaders to walk through changes before a complete rollout.
Training leadership to serve as ambassadors on the changes allows employees to feel comfortable with big shifts in policies and provides some relief to HR when navigating questions and concerns.
Compliance, with a side of comfort
Handbooks are an extension of your organization, and while the policies and procedures are helpful to the operations of your business and to show compliance with relevant laws, they also provide useful processes and comfort to employees that there is a clear, consistent process and a means of understanding the terms and conditions of their employment.
Incorporating regular updates should be a key component of corporate policy as companies approach the new year.
