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Employee handbooks are invaluable tools to help employers convey consistent messages to employees. Use these tips to draft a handbook that provides reliable employee standards, includes required notices, and limits employer liability.

Before beginning any handbook review or drafting process, discuss some basic questions with your client:

The handbook's terms should preserve the employer's right to change its provisions and should clearly define the employment relationship. Include the following:

It is important for employers to state in the handbook that their workplace will be free of discrimination and violence. It is equally important to acknowledge the protection of employee privacy in accordance with numerous statutes. Specifically, the handbook should include the following disclaimers:

Employee pay and leave is regulated by state and federal statute, and the handbook should include appropriate information in compliance with those laws, including the following:

A comprehensive handbook should include a number of other liability-limiting provisions to make sure employees understand the employer's expectations regarding things like discipline and the protection of confidential employer information. The following provisions are critical:

Michigan recognizes specific protected classes, which should be detailed in the employee handbook. Employees may not be discriminated against based on marital status, familial status, height, weight, or misdemeanor arrest record.

Certain municipalities have other ordinances that should be considered. For example, Grand Rapids has an ordinance that prohibits employers from considering all arrest records of an applicant that did not result in a conviction. Grand Rapids also prohibits discrimination of the following additional classes: current or prospective employees with respect to hire, tenure, terms, conditions, or privileges of employment on the basis of actual or perceived color, creed, genotype, medical condition, or source of lawful income.

Ann Arbor prohibits hiring discrimination on the basis of the following additional classes: actual or perceived age, arrest record, color, educational association, family responsibilities, HIV status, political beliefs, source of income, or victim of domestic violence or stalking. And East Lansing prohibits recruiting or hiring discrimination on the basis of the additional categories of student status or use of adaptive devices or aids.

Research potential regulations affecting the employer's workplace carefully.

A separate acknowledgment accompanying the handbook will demonstrate that the employee had a chance to review the handbook and had a chance to ask any questions about it. This serves to eliminate ambiguity should litigation arise.

If the employee is not subject to a separate employment agreement protecting the company, the handbook acknowledgment can be modified into a short contract and handbook receipt (and, of course, basic contract construction must be assessed to ensure enforceability).

Usually an employee handbook disclaims the creation of a contract. However, an employer can create a separate handbook acknowledgment that creates an enforceable contract that survives termination. Such an acknowledgment should include the following:

The following policies can help clarify what is expected of employees and what is prohibited and can act as a guide for management to ensure they are applying company policies properly and consistently:

Benefit plan documents should be separate from the handbook because they can frequently change—this can increase administration and cause confusion if policies are not up to date. A short summary of applicable benefits is suitable, provided it is clear that plan documents must always govern.

An employer should review its handbook annually with legal counsel to ensure it meets all legal requirements. Advise employer clients that a well-crafted handbook can serve as the first line of defense as evidence of compliance efforts when faced with lawsuits and charges from the Equal Employment Opportunity Commission or other administrative agencies.

Originally published by The Institute of Continuing Legal Education

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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