Most employers are now subject to more than 100 federal and/or state laws, which affect the content of and the word choice used in an employee handbook. Mistakes can have catastrophic consequences because handbooks are disseminated to virtually all employees.

Drafting an employee handbook is an art. No employer should undertake to put a handbook in place without being prepared to make a substantial time and monetary commitment.

Handbooks should be clearly written, (no "legalize") and organized so that they can be understood by the employees. They should be "user friendly", positive, and foster a feeling of well being--up to a point. A certain amount of legal language is indispensable in the present litigious environment. Disclaimers and reservations of management rights should not be watered down or hidden so that they lose their effectiveness. Any disclaimers should be prominently displayed in the handbook. What are these disclaimers?

• The handbook does not create a contract, express or implied.
  
• The handbook is not all-inclusive, and is only a set of guidelines.
• The handbook does not alter the "at-will" relationship between the employer and the employee.
• The handbook does not guarantee employment for any definite period of time.
• The handbook applies to the following categories of employees: (Fill in)
• The handbook supersedes any previous handbook or unwritten policies.
• The handbook can only be changed, in writing, by the President of the company.
• The handbook can be changed by the organization unilaterally, at any time.

Handbooks should be reviewed annually to see if revisions are necessary.

In conclusion, handbooks can have explosive effects in the workplace. Legal and human resource issues have become intertwined, and nowhere is this more true than in connection with employee handbooks. If developed and crafted properly, handbooks can be valuable employee communications tools, which can help to avoid or reduce litigation costs.