Handbooks serve many valuable purposes, but they also carry with them certain risks and obligations. With the recent dramatic increase in litigation, some employers have found themselves in court because of ill-advised employee handbook provisions. Other employers have found that their handbooks were indispensable in keeping them out of court.

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 can be valuable, positive communication and employee relations tools. They can be extremely helpful in maintaining consistency among supervisors, properly orienting new employees and avoiding any misunderstandings about workplace policies.

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.

Any handbook that is more than 5 years old has failed to address literally hundreds of state and federal court cases dealing with handbook-related issues. State and federal government agencies have also issued numerous regulations and interpretive decisions in recent years, which affect handbook policies. Finally, new technologies have arisen during the last decade, which should be addressed by policy manuals. Examples of these issues are email and computer monitoring, trade secrets, workplace smoking, personal appearance and employee dating. In addition, new employee benefits should be referenced in your handbook.

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.

Jim Schulist is a Human Resource Advisor and a generalist with over 30 years of experience, and practices in the Houston area. Although he is not an attorney, Jim is well versed in the broad area of Human Resources. He specializes in the avoidance of, and solutions to employee relations' issues through the establishment of sound human resource practices, policies and procedures.
Shulist Interests 12119 Knobcrest Dr. Houston, Texas 77070-2435 281-379-1706