Should My Company Have An Employee Handbook?

 Posted on April 23, 2025 in Business and Commercial Law

Employee handbooks are often considered something that only belongs in a large corporate environment. This is a misconception, however. Small and medium businesses can also benefit greatly from having an employee handbook in place. From a legal standpoint, employee handbooks can help protect a business from liability. They also enhance a company’s professionalism, save businesses time and money, and minimize future disputes with employees. That is a win-win for businesses of any size.

There are essential sections that employers should aim to include in their employee handbook. An experienced Hood County, TX employment lawyer can advise you on how best to draft your employee handbooks.

Why Should My Company Have an Employee Handbook?

Employee handbooks can be beneficial in several ways, but by far the main reason employers should have them is to protect their businesses from legal liability. An employee handbook outlines the rules and policies that apply to workers. This encourages company-wide legal compliance by providing guidelines in the event there is a dispute with an employee. It also serves as evidence that a company takes compliance with employment laws seriously.

Employee handbooks can also foster a unique company culture, thereby encouraging employee retention. They can save businesses time and money by addressing many common employee concerns in one document, leading to more uniformity as well.

What Essential Sections Should My Company’s Employee Handbook Include?

Wage and Anti-Discrimination Laws

At a minimum, your employee handbook should include a section outlining the relevant employment laws that apply to you and the employee. Assuming your company has at least two employees and has done at least $500,000 in sales or business, this should include information on the requirements of the Fair Labor Standards Act (FLSA) regarding minimum wage pay, overtime pay, and other benefits. If your business employs fifteen or more people, this section should also outline the law against discrimination set out in the Americans with Disabilities Act (ADA).

Leave Policies

Depending on the company’s size, the handbook should also include information about the employee’s right to leave under the Family Medical Leave Act (FMLA). It should also lay out legally required leave policies for jury duty, military service, and voting.

Company Policies

Another important section to include in the employee handbook pertains to the company’s policies. This includes things like the company’s paid time off policies, any benefits, its code of conduct and dress if applicable, and policies related to technology use and drugs and alcohol.

Call a Hood County, TX Employment Attorney for Employers 

Businesses must comply with federal and state laws, and one helpful way to ensure compliance is by having an employee handbook in place. The experienced Hill County, TX business law attorneys at Cain & Kiel Law assist employers in drafting employee handbooks that document the company’s policies and ensure compliance with the law. Call our offices at 817-645-1717 for a consultation to discuss your company’s employment law needs.