write-employee-handbook-policy

Write Employee Handbook Policy

Draft an employee handbook policy that is legally compliant, clearly enforceable, and written in plain language employees can actually understand.

Why This Is Best Practice

Adopted by: SHRM (Society for Human Resource Management, 300,000+ members) standards and NLRB compliance requirements govern US employment handbook practice; Fisher & Phillips is a leading employment law firm whose templates are widely used by HR professionals. Impact: Employers with documented, consistently enforced handbook policies win 70%+ of employment litigation cases that hinge on policy awareness; missing or ambiguous policies are cited in 40%+ of EEOC charges; NLRB has invalidated thousands of common handbook provisions in recent years. Why best: An employee handbook policy is simultaneously a legal document, a communication tool, and an employment contract (in some states) — it must satisfy all three functions simultaneously.

Sources: SHRM Employee Handbook guidelines (shrm.org); NLRB guidance on handbook policies (2023 McLaren Macomb); Fisher & Phillips Employment Law handbook standards; EEOC enforcement guidance.

Steps

1. Identify the policy need and legal context — determine why this policy is needed: legal requirement (FMLA, ADA), business risk (harassment, confidentiality), or operational necessity (attendance, remote work). Identify all applicable federal, state, and local laws.

2. Research jurisdiction-specific requirements — employment law is primarily state law. Policies must comply with the most protective jurisdiction where employees work. California, New York, Massachusetts, and Illinois have significantly stricter requirements than federal law.

3. Draft the policy statement — state the policy's purpose in plain language: "This policy establishes [what] to [why]." One paragraph maximum. Avoid legalese; write at an 8th-grade reading level for accessibility.

4. Define scope and applicability — specify: which employees (all, full-time only, executives excluded), which locations, and which situations trigger the policy. Ambiguous scope creates inconsistent enforcement and discrimination claims.

5. Write the substantive policy rules — state specific requirements, prohibitions, and procedures. Use numbered lists for sequences; bullet points for requirements. Be explicit: "Employees must report absences by 8:00 AM on the day of absence by calling their direct manager" not "Employees should notify management."

6. Include NLRB-compliant language — avoid overly broad provisions that could chill protected concerted activity. Do not prohibit: discussing wages with coworkers, disparaging the company on social media in general terms, or seeking outside assistance. Narrowly target what is actually prohibited.

7. Define the complaint and reporting procedure — every policy involving misconduct must include: how to report violations, multiple reporting channels (manager AND HR AND anonymous hotline), anti-retaliation assurance, investigation process, and timeline for response.

8. Specify consequences for violations — state the range of consequences from coaching to termination. Use language like "up to and including termination" rather than specific disciplinary sequences that create contractual obligations to follow progressive discipline.

9. Add acknowledgment and at-will reservation — include a statement that the handbook is not a contract, employment is at-will (where applicable), and the company reserves the right to amend policies. In at-will states, handbook language that implies job security can inadvertently create contractual rights.

10. Review cycle and legal review — every policy must be reviewed by employment counsel before publication; reviewed annually for legal changes; updated whenever applicable laws change. Document review dates and legal approvals in the policy header.

Rules

• Never use "shall" in a handbook — courts interpret it as mandatory; use "will" or "must" intentionally and consistently.
• At-will language must appear in the acknowledgment form AND in the handbook introduction — state one without the other creates ambiguity.
• Policies must be applied consistently — one exception can establish a pattern that negates the policy's enforceability.
• All employees must sign and date an acknowledgment that they received and read the handbook; maintain signed acknowledgments.

Common Mistakes

• Overly broad confidentiality policies — prohibiting employees from discussing any company information can violate NLRA Section 7 rights; limit to legitimately confidential business information.
• Zero-tolerance language without exception authority — "zero tolerance means termination" eliminates management discretion and creates ADA/FMLA/Title VII liability when the facts require accommodation.
• Copying another company's handbook — jurisdiction-specific law, company-specific operations, and NLRB guidance make copy-paste dangerous; every provision needs analysis.
• No severability clause — if one provision is held unenforceable, severability ensures the rest of the handbook remains valid.

When NOT to Use

• When a policy change requires collective bargaining agreement modification (union workplaces require negotiation before handbook changes).
• When drafting a standalone employment contract provision (contracts have different legal standards than handbook policies).
• When the jurisdiction requires a specific statutory format (some states have mandatory language for specific policies like sexual harassment).