An employee handbook is more than a formality; it is your company’s foundation for setting expectations, communicating policies, and protecting your business. Yet too often, small businesses treat the handbook as a “set it and forget it” document. If it has been more than a year since you last updated yours, it is time for a closer look.
Why the Handbook Matters
A well-written handbook is more than a list of rules. It gives employees a clear understanding of your culture, explains important policies and legal requirements, and helps set expectations around benefits, time off, and workplace standards. It also provides valuable protection if any issues arise.
Not sure if your handbook is out of date? Here are just a few signs to look for. This isn’t a complete list, but it’s a good place to start.
- It refers to policies or laws that have changed. For California businesses, keeping up with employment laws is a constant challenge. New laws and changes are often introduced, especially at the beginning and middle of the year, which can affect how you operate.
- It lacks acknowledgment pages. Without a signed acknowledgment, you lose one of your strongest forms of protection in an employee claim.
- Lacks at-will employment language
- It does not reflect your current benefits, PTO, or work hours.
- You copied it from the internet or borrowed it from another company and never tailored it to your business.
California-Specific Considerations
If you have employees in California, your handbook must reflect state-specific protections like CFRA leave, lactation accommodations, wage statement rules, and expanded anti-harassment policies. A generic handbook will not cut it.
How Often Should You Update It?
Review your handbook annually, preferably early in the year, to incorporate legislative changes. Additionally, consider updating it sooner if your business experiences significant changes such as new leadership, restructuring, benefits updates, or transitions to remote work.
Need Help?
Bringing in an HR consultant to refresh your employee handbook is a smart choice! It’s a small investment that yields big returns by minimizing risks and enabling your team to thrive. They’ll ensure your handbook is compliant, current, and clear.