Reasons to Create an Employee Handbook

When you start your own business and hire employees, you should consider creating an employee handbook. Creating a handbook is generally not a legal requirement, but it's a good idea for several reasons.

First, the handbook explains your business's policies and practices in one central place. This allows you to set expectations and standards for employees, as well as answer common questions that employees might have about such topics as time off, payroll, and internal complaint procedures.

Second, the handbook can help you defend against possible legal claims. For example, if your handbook contains robust anti-discrimination policies that meet the requirements of federal, state, and local laws, and you carefully follow those anti-discrimination policies when running your business, you could be in a stronger position to defend against a claim that you broke the law by discriminating against a specific employee.

However, a handbook can create the risk that the handbook will be interpreted as an express or implied contract of employment, or as a modification of the employment at will doctrine (that employees may be terminated any time, for any reason or no reason at all). To minimize this risk, you should write the handbook in such a way that it's clear the handbook creates no contract of employment and does not modify the employment at will doctrine.

Thickstun Luo LLC can help you create an employee handbook that meets the needs of your small business and complies with applicable laws in Illinois or Indiana. Contact us today for a consultation.

LEGALESE is an online blog by Thickstun Luo LLC. The blog explains legal terms and concepts in plain English.

Disclaimer: The LEGALESE blog and the posts therein do not form an attorney-client relationship between you and Thickstun Luo LLC. Furthermore, this blog is not intended to render legal advice regarding your specific situation. You should consult an attorney for specific legal advice. Some content in LEGALESE blog posts pertain to state-specific legal rules and concepts that may not be applicable in every jurisdiction.