The thought of writing an employee handbook can be daunting – it is quite often a lot of work and requires an understanding of a wide variety of laws, rules, and regulations. But the work to get a handbook that is relevant, legally compliant, and easy to read is worth the effort when it can save an employer from costly litigation. Here are some of the more common questions we get from clients:

Do we really need a handbook?

Yes, all employers need to have a handbook. First, the law requires employers to have certain policies. For example, all employers in Oregon must at least have a policy on harassment, discrimination, and sexual assault. Additionally, employers with 50 or more employees must also have a Family and Medical Leave Act policy.

A handbook presents an employer with the opportunity to consolidate all its policies in one central location. The handbook will be the first place for employees to turn to understand their rights and responsibilities. It can also serve as a guide for supervisors. However, a handbook is more than just a collection of policies. It can serve as a way for a company to audit its current processes and create policies that accurately reflect its practices while also ensuring legal compliance. Handbooks can also help new employees feel like a part of the team and learn about the company’s history.

What policies should we include in a handbook?

In addition to the policies listed above, employers should consider including the following essential policies:

a statement that it is an equal opportunity employer;
notice of at-will employment (for employers with at-will employees);
accommodations policies, including disability, pregnancy, religion, and domestic violence;
employment categories (such as full time, part time, exempt, nonexempt);
wage and hour policies, including overtime, recording time worked, etc.;
time off polices, including vacation and sick time;
leave policies, including leave under Paid Leave Oregon, Oregon Family Leave Act, Family and Medical Leave Act, as well as other leave laws;
policies addressing the use of alcohol and drugs, including when employees can be tested;
workplace safety policies, including reporting on-the-job injuries;
workplace violence policies;
standards of conduct and discipline; and
any industry-specific policies.

Along with the handbook, there should be an acknowledgment for each employee to sign and date to be able to show when the employee received the policies. While this list is not exhaustive, it is a good starting point.

What detailed procedures should we include in our handbook?

Although it is tempting to list specific procedural instructions for every situation, the best practice is to approach a handbook as a list of more general policies. If an employer is not able to comply with its own set of specific procedures every time an incident happens, it could lead to litigation down the road, so it is best to lay out a general policy and provide for some flexibility and employer discretion.

How often should we review and update our handbook?

So many factors can affect the way a policy should be written, including statutory changes, recent judicial opinions, agencies issuing revised rules, not to mention the ongoing impacts of the pandemic as well as other factors unrelated to the law. Accordingly, it is a good idea to perform a handbook review at least once a year but more frequently if there are major legal changes. It is likely that every legislative session will bring required changes, so watch for alerts that may require updates. Periodic legal review will ensure compliance and that the language used to communicate policies and rules does not run afoul of the rights embedded in the National Labor Relations Act protecting an employee’s right to discuss the terms and conditions of their employment.

What recent law changes should be addressed in a handbook?

Recent changes to OFLA and Paid Leave Oregon, effective July 1, 2024, should be included in a revised handbook. These changes include certain conditions no longer covered by OFLA, some expanded OFLA leave benefits, and expansion of the family leave provisions under Paid Leave Oregon, among other changes.

Also, be mindful of industry-specific legislation that impacts policies. For example, agriculture employers should ensure their overtime policy reflects the most recent changes.

Amy Angel is a partner at Barran Liebman. She advises employers regarding a full range of employment matters, including handbooks and policies.

Abby Fitts is an attorney at Barran Liebman. She advises employers regarding a full range of employment matters, including handbooks and policies.