As the end of the year draws near, you might be hard at work updating and reviewing your organization’s employee handbook. Of course, it is vital to ensure it includes new laws and regulations for 2025. But you can also use this as an opportunity to make sure your handbook’s wording adheres to some best practices and avoids common pitfalls.
Here are some elements to pay close attention to as you go over your handbook:
Codified Practices
As the source document for employee expectations, the employee handbook is often referenced in official proceedings, such as unemployment hearings. To preserve its use for these purposes, it is best practice that anything codified in the handbook should be adhered to 100% of the time. In cases where that is not possible, the handbook should not commit the employer to a specific practice. Either more general language can be used, or that practice should be removed from the handbook and communicated through a different channel.
The goal is to strike a balance: Provide clarity to inform employees while avoiding rigid commitments that could limit an employer’s ability to adapt to changing circumstances.
Accidental Contractual or Union Language
Certain language choices may unintentionally create contractual obligations or suggest union-like terms of employment.
Stating that employees “agree” or “consent” to any terms of the handbook can increase the risk of the handbook being found to be an implied contract, even if a disclaimer states otherwise. Agreements regarding drug testing, confidentiality, or other signed arrangements between the employee and employer should be a separate document.
Similarly, phrases such as "grievances," “with cause,” or “due process” align with union language and carry certain connotations. This could create issues if future unionization efforts or a labor audit were to occur. In many cases, alternate at-will language exists, such as “concerns” instead of “grievances” and “corrective action” instead of “due process.”
Subject to Disciplinary Action
Phrases such as “subject to disciplinary action, up to and including termination” are common in handbooks. Overuse of such phrases can invite speculation that the company takes some policies more seriously than others or that only some policy violations may be terminable offenses.
There is a misconception that this must be stated in a policy in order to terminate an employee for a violation. However, a policy’s presence in the employee handbook naturally implies that a violation could or will result in corrective action. A statement that the given behavior “is prohibited” or “will not be tolerated” is usually sufficient.
We generally recommend using this phrase only in the Complaint Procedure section under EEO and Unlawful Harassment, which helps show deterrence efforts when developing an affirmative defense against claims of harassment.
Procedural Language
Handbooks should avoid overly detailed descriptions of internal processes or step-by-step procedures. Handbooks are typically updated once every year or two, while procedures, vendors, and personnel can change more frequently. To avoid these changes impacting the handbook’s accuracy, refer instead to the role or purpose. Instead of “Call Susan Smith with questions,” which can cause confusion if Susan leaves or changes positions, we can say, “Contact Human Resources with questions.” This contact remains evergreen regardless of who is staffing Human Resources.
Consider the message to employees if the handbook contains outdated information. Specific references to a contact, a platform, or a procedure that is no longer in use add confusion to the onboarding process for new hires. Employees who can’t rely on the handbook to be accurate in all situations may struggle to rely upon it in any situation.
Keeping procedural details in separate internal documents can also help maintain managerial flexibility, while ensuring employees are still aware of the general policies. If standard operating procedure (SOP) documents are available to employees, it is appropriate to refer to the more detailed SOP. For example, a timekeeping guideline in a handbook might state, “Employees are required to record all time worked and paid time off in the Company’s timekeeping system. See Time Entry SOP for more information.” This sets the expectation in the handbook that employees will adhere to the established procedure, while providing a resource for the procedure itself.
Help Is Available
All Employers Council members have access to our employee handbooks resource library, which includes guidance on handbook design and common considerations, complete sample handbooks, and dozens of individual policies. Each document in the library has been reviewed and approved by Employers Council attorneys for use and is available for our members to use in their own handbooks.
For those of you who want professional assistance with your handbook, Employers Council is here to help. Consulting and Enterprise tier members have one annual handbook review by an HR Consultant included in their membership each year. Enterprise tier members also receive a legal review at no additional cost, while Consulting members can elect to use their consulting hours for a legal review. The turnaround time on reviews is 3-8 weeks, depending on volume and whether the review is HR-only or HR and legal.
During a handbook review, our consultants will check your existing handbook for necessary updates to comply with new laws and regulations, as well as provide guidance on the handbook content using the principles listed above. If you have any questions about the guidance provided in the review, please reach out to the Employers Council HR consultant or attorney who performed the review for clarification. Employers looking for a more complete package can purchase a custom handbook.
To request a review of your employee handbook or a quote for a custom handbook, email HandbookReviews@employerscouncil.org. Please note that review projects beginning after November 30 will not be completed before the end of 2024.
Hannah Rich is an HR consultant for Employers Council.