HR Management & Compliance

FAQs on Employee Handbooks for 2013

An employee handbook can be your friend or your foe. Careless wording may create a contract promising employees advantages you don’t mean to promise, but on the flip side, a carefully-worded handbook can help shield your organization from liability.

Employee handbooks are a powerful tool for any organization—if you get them right. Recently, Adam Keating was our expert speaker for a BLR webinar titled “New Year, New Laws, New Employee Handbook: What to Change and What to Keep for 2013.” He lent his expertise to answer participant questions after the webinar. Perhaps you’re wondering about some of these things as well:

Q. Should we include which version (year) of the handbook on the acknowledgement form?

A. Yes, definitely. For two reasons 1) for general recordkeeping or logistical purposes (matching what acknowledgement goes with what version of the handbook), and also 2) if it ever comes to litigation, you can point specifically to that acknowledgement to prove receipt and acknowledgement of those policies.

Q. With respect to language describing vacations, if employer policy does not pay out unused vacation upon termination, how should this be worded in our employee handbook to avoid the unused vacation being perceived as unused wages?

A. There’s no federal law or even state law that requires you to provide vacation time to employees. However, different states have laws that describe whether or not accrued but unused vacation time must be paid upon termination. In general, “use it or lose it” policies are allowed, but some states differ. To get your handbook right, consult your state law first.

Q. What are the pros and cons of using electronic version of employee handbooks?

A. A lot of employers are starting to do this. I think it makes sense, especially if you have an intranet that employees can easily access. It’s a great idea if employees are on the computer all the time anyway. I would suggest that you have an option to create hard copies for employees that want them. Another pro is reducing printing costs.

Searchable documents are also useful to allow employees to easily find what they’re looking for. All of that said, be sure to keep signed employee handbook acknowledgements printed; if the signed acknowledgement is done electronically, be sure to have a printed copy that goes into the personnel file so that it does not get purged.

Q. If our employees sign a separate confidentiality agreement, does that need to go in the handbook as well?

A. I would say no. If they are at a level that necessitates a confidentiality agreement, I would have that be separate, just as a non-compete would be separate. You don’t want a future situation where the employee claims they didn’t see it because it was in the middle of the handbook.

Q. We have about 45 policies. These are reviewed with every new hire and are accessible on our intranet. Employees are notified via email of all changes. Should I also have a handbook to summarize all of the policies?

A. I think a handbook would be a good idea just to have everything in one location. That said, there’s no law requiring you to have a handbook. The handbook is there for you to lay out what you expect of your employees and how you want the company to run. If you had a handbook with those 45 personnel policies, you could also have something regarding a mission statement, etc. It wouldn’t be a bad idea to keep it all in one place.

Q. Should the acknowledgement state that the employee has read and understands the handbook (given that the acknowledgement is often given before they have read it)?

A. Ideally they will have had the chance to read and ask questions before being asked to sign the acknowledgement. If you give the handbook and tell them about the acknowledgement, tell them to be sure to read it and understand it before signing. If they still choose to sign without reading or understanding, then they are still to be held accountable for it.

Q. Is there a general recommendation about how long an employee handbook should be? How long is too long?

A. Less is more. You have to be practical. No one is going to read a 100-page handbook. A 20-30 page handbook is more than sufficient. The key policies you want to have in there are the FMLA policy, sexual harassment, discrimination and complaint procedure, general work rules you want to enforce, those types of things. Much of the other stuff is discretionary and can be addressed separately.

For more information on employee handbooks and 2013 updates, order the webinar recording of “New Year, New Laws, New Employee Handbook: What to Change and What to Keep for 2013.” To register for a future webinar, visit http://catalog.blr.com/audio.

Attorney Adam Keating is an associate in the Atlanta office of FordHarrison, LLP. His practice is focused on the representation of employers in labor and employment disputes.

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