Employment Law FAQs

Do I need an employee handbook?

There is no law requiring employers to have an employee handbook, but it's a good idea. A handbook lets you inform your employees about your workplace rules in an efficient, uniform way. Your employees will know what is expected of them and what they can expect of you. And you will be able to prove that all employees were aware of the rules if an employee later decides to challenge you in court.

An example of a policy you should include in an employee handbook is an email policy to reserve your right to read email messages, in case you're ever faced with an employee who engages in misconduct in cyberspace (by sending harassing messages or revealing company trade secrets through email, for example). Your policy can also explain the rules on using the email system to send personal messages, how often you will purge email messages, and more. (For more information, see Why You Need an Email Policy.)

For more suggestions on what to include in an employee handbook, see Why You Should Create an Employee Handbook.

How do I avoid legal problems when giving employee evaluations?

Create an evaluation form for each job category that focuses on the skills needed for successful job performance. Focus on job duties, not personality traits. Some generally appropriate considerations are work quality, dependability, punctuality, and communication skills. Allow your employees to see the form ahead of time, so they will know the basis for their evaluations.

Be honest and consistent with your employees. Try to maintain an overall positive approach so your employees will be motivated to improve, but don't sugarcoat the bad news. Give your employees a real opportunity to improve by giving them constructive criticism and performance goals. And make sure to back up your evaluations with real consequences: If an employee is far exceeding expectations, consider giving a raise or other recognition. If an employee is having serious performance problems, discipline might be in order.

For more on employee evaluations and performance appraisals, see How to Conduct Employee Evaluations.

How can I discipline problem employees without getting into legal trouble?

First, you need a clear written disciplinary policy. This will let your employees know what to expect if they fail to meet your performance standards. But be careful not to limit your ability to fire employees "at will" (that is, for any reason that is not illegal).

Next, apply your policy fairly and consistently to all employees. Avoid claims of discrimination or favoritism by imposing similar discipline for similar offenses. Make sure your employees get the message: Be honest and up front in your criticism, listen to your employee's response, and try to work together to resolve the problem.

Finally, document everything. Whenever you have to discipline an employee, take notes and place them in the employee's personnel file. If the employee later decides to file a lawsuit, you will have proof that the employee was warned about performance problems and was unable to improve.

To learn more about writing a disciplinary policy and delivering the discipline, see Developing a Disciplinary Policy.

DISCLAIMER: This site and any information contained herein are intended for informational purposes only and should not be construed as legal advice. Seek competent legal counsel for advice on any legal matter.

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