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10 Most Common Handbook Mistakes Revealed

An employee handbook formally delineates company expectations regarding performance and conduct, summarizes the relationship between employer and employee, and provides general information about the organization as well as the benefits and services the company offers. But are you making the most out of this valuable tool or just making mistakes? Download this paper to find out.

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Employee Handbook Wizard™ Frequently Asked Questions
  1. What is an employee handbook?
  2. Are employers legally required to distribute employee handbooks?
  3. Who needs an employee handbook?
  4. Does having an employee handbook mean I am creating a contract with my employees?
  5. How can employers make it clear that employees are at-will?
  6. What is the Employee Handbook Wizard™?
  7. Why do I need an employee handbook?
  8. What's included with the Wizard?
  9. What is the Online Employee Access feature?
  10. Who is supposed to complete the Employee Handbook Wizard™?
  11. How long will it take me to create my handbook?
  12. Why should I choose Handbook Express versus the step-by-step handbook option?
  13. How much does it cost?
  14. Why do I have to pay a maintenance fee?
  15. What policies are included within the Wizard?
  16. Is it easy to update?
  17. What is the Handbook Wizard Management Center?
  18. How can I learn more?





1. What is an employee handbook?

An employee handbook can be thought of as a guide to the employer-employee relationship. In addition to establishing ground rules for conduct and performance, an employee handbook can describe company programs and benefits and communicate general information about the organization and its operations.

The contents of an employee handbook can span a range of topics, including:

  • Welcome message explaining the handbook's purpose
  • Company history, mission, values and goals
  • Anti-discrimination policies relating to equal employment opportunity, sexual harassment, and affirmative action
  • Use of company property, such as email, Internet, phone, and voicemail
  • Compensation information, including employment classifications, work hours, overtime, and pay procedures
  • Standards of conduct
  • Descriptions of company benefits, such as health insurance, paid time off, leave of absence, and retirement plans
  • Safety and emergency procedures
  • Training and professional development opportunities
  • Information on hiring, screening, promotion, transfer, separation, and rehire
  • Handbook acknowledgement form
  • Employment at-will disclaimer

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2. Are employers legally required to distribute employee handbooks?

Employers are not legally required to dispense employee handbooks; however, employers may be required to have certain policies in writing. Some state and federal laws require employers to communicate their compliance with EEO laws, leave of absence, and workers' compensation. An employee handbook is the ideal outlet for communicating such policies.

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3. Who needs an employee handbook?

This requirement may vary by state; however, all employers should consider creating and distributing employee handbooks. Some states have laws and labor codes requiring companies with one or more employees to have written policies in place on issues such as sexual harassment, paydays, and equal employment opportunity. To be sure you've got your bases covered an employee handbook is the ideal place to communicate this requirement.

In reality all employers should consider publishing a handbook if they have a sufficient number of employees to be covered under legislation like Title VII of the Civil Rights Act, the ADA, or the ADEA.

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4. Does having an employee handbook mean I am creating a contract with my employees?

Policies should be written as guidelines that explain typical circumstances. The fact of the matter is employers cannot be expected to think of every circumstance, so don't try to. Language that is overly specific may be interpreted as such. For instance, listing the types of behaviors that may warrant disciplinary action may be a good idea so long as the policy states that such a list is not exhaustive.

Your policies should avoid statements such as:

  • The company will only or will always do something
  • Promises of job security
  • Terminations will be made only for cause
  • Inclusive lists relating to standards of conduct or discipline

In place of these limiting words, employers should use language such as generally, typically, may, etc. so that managers have flexibility in interpreting and applying policies. The handbook should also state that management discretion will be taken in applying polices. In reality all employers should consider publishing a handbook if they have a sufficient number of employees to be covered under legislation like Title VII of the Civil Rights Act, the ADA, or the ADEA.

Another important way to protect against implied contracts is by having a strong employment at-will disclaimer. To be effective, a disclaimer should state the following:

  • Nothing in the handbook is to be construed as a contract.
  • Employment is at-will, and either the employer or the employee may, at any time, terminate the employment relationship with or without cause.
  • Written or oral statements made to the employee are not to be interpreted to alter the at-will relationship.
  • Disciplinary procedures in the handbook are advisory and not binding on the employer.
  • Disciplinary procedures may be adjusted or modified at the discretion of the employer.
  • The employer may change any terms or conditions of employment, whether these are stated in the handbook or are established through employment practices.
  • These terms and conditions may be altered in writing only and when signed by specified officers of the organization, e.g., the president.

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5. How can employers make it clear that employees are at-will?

The best way to notify employees of their at-will status is to use disclaimers in employment applications, job offers, handbooks, and other company communications. At-will disclaimers help protect you from possible legal problems stemming from language in company literature that can unintentionally create implied contracts.

All new employees should be given a copy of the employee handbook and asked to sign an acknowledgement stating that the employee acknowledges and agrees that nothing outlined in the handbook is intended to create a contractual relationship or alter the at-will relationship of his or her employment.

In addition to an at-will disclaimer, employers should also:

  • Train all employees involved in the hiring process or in the management of employees to avoid using language or making statements that may be construed as an offer of permanent employment.
  • Include language reserving the employer's right to determine what level of discipline is appropriate in any given circumstance, including the immediate termination of employment, as part of any disciplinary policy. At the end of the disciplinary policy, include a statement that the policy in no way alters the at-will nature of employment.
  • Even though it is a good idea to include a list of conduct that will not be tolerated at the company in the employee handbook, a statement should be included before the list noting that this is only a partial list provided as a reference for employees and that other conduct may result in discipline as well, up to and including the termination of employment.

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6. What is the Employee Handbook Wizard™?

Our exclusive Employee Handbook Wizard™ is designed specifically for small and mid-sized companies to easily create and maintain policies to protect their business. It is a user friendly, web-based tool that provides comprehensive guidance and quick, quality results. What does this mean for you? A professional handbook containing all of the necessary employment policies and guidelines your business requires.

Key Featuers:

  • From the Small Business to the Fortune 500, we've got you covered: We work with thousands of businesses across the country-employers of all sizes and from all industries. We know what our clients want and that's a cost effective, easy to use and high-quality service that can alleviate their headaches and protect their business. The Employee Handbook Wizard™ accomplishes just that.

  • Saves You Time and Money: Traditional alternatives can cost your business thousands of dollars in attorneys and consulting fees. The Employee Handbook Wizard™ is cost effective, easy to use and produces a professional, high quality handbook in no time.

  • Always Current & In Compliance: Our staff of HR experts is constantly monitoring the HR and labor compliance landscape. We work hard for you to make sure that the information provided is always current and in compliance with the law. You can relax knowing that you have the freedom to focus on moving your business forward while our team of experts monitors key changes in employment and labor law, determines which changes may apply to your company, and sends you alerts that help keep you updated and informed.

  • You Control the Output: Download an Adobe Acrobat PDF version of your handbook and have it professionally printed and/or provide online employee access to your completed handbook with your very own customizable webpage. The choice is all yours.

  • Employee Access Online: Have your employees view your completed handbook online by creating your very own employee access portal. Upon completion of the Employee Handbook Wizard™, you can easily set up your own secure website for hosting your employee handbook. Customize your colors, add your company logo, create a welcome message, and request and store electronic handbook acknowledgements.

  • Handbook Management Center: The Employee Handbook Wizard™ is not only a tool for creating your handbook; it is a tool for updating and maintaining your handbook as well. Easily edit existing polices, add you own custom policies or select from our library of over 200 sample policies, track your revisions, store revision notes, and receive and store handbook acknowledgements electronically. You get everything you need to update and maintain your handbook—all in one place!

Best of all, it is affordable and easy-to-use, ensuring that even the most novice of professionals can create legally compliant policies and handbooks with a few clicks of the mouse. Anyone can quickly create professional policies and handbooks in minutes.

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7. Why do I need an employee handbook?

Employers that have written policies in place can help to establish good faith compliance with the law. For example, the Supreme Court has indicated that employers can protect themselves from liability in sexual harassment claims by having a clearly communicated and well-defined sexual harassment policy that includes the types of behaviors that are prohibited, how employees can file sexual harassment complaints, and the procedures the company will follow when investigating claims.

Among various states, policies that are most often required to be in writing include those relating to:

  • Compensation—how employees will be paid and when
  • Equal Employment Opportunity (EEO)
  • Sexual harassment
  • Workers' compensation
  • FMLA

Besides demonstrating due diligence an employee handbook also helps to:

  • Increase consistency. Ensures every employee receives the same information regarding work rules and company practices and promotes consistency by holding all employees to the same standards

  • Increase convenience.Serves as a convenient manner to communicate company policies on state and federal regulations, such as EEO, FMLA, and workers' compensation

  • Save time. A well-prepared handbook will answer at least three quarters of routine employee questions. When employees know to look in the handbook first, it saves management time.

  • Sell the organization. The handbook provides information about what the employer offers their employees. Even if an employee never makes use of a tuition reimbursement program, for example, detailing the company's collection of perks can be a powerful motivator and an effective tool for reducing turnover.

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8. What's included with the Wizard?

When you purchase the Employee Handbook Wizard™ you not only get the ease of use and automation the wizard provides; you also get an assortment of supporting documents and unique features, including:

  • The option to choose the completion method that works best for you

  • Handbook preparation guidance

  • Handbook Wizard Reference Manual, providing you with hints and tips for effectively using the Wizard

  • Handbook implementation guide and checklist

  • Employee acknowledgement of handbook form PLUS electronic versions that are received and stored as PDFs

  • 24/7 online employee access

  • 24/7 access to update, revise and manage your handbook

HR411's Employee Handbook Wizard™ is the easiest and most cost effective way to develop and maintain your employee handbook and protect your business.

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9. What is the Online Employee Access feature?

The Employee Access feature allows you to provide access to your employee handbook online 24/7 for your employees to view as needed. The separate website securely stores your very own employee handbook and can be personalized with your company's colors and logo. In order to use the Employee Access feature, you will be asked to create log-in information for your employees using our Employee Access Set-up Wizard. They will have to go to your personalized website on www.myhandbookonline/yourcompanyname and type in the log-in information you provide them. Once logged in, they will be able to view the entire contents of your completed handbook. With this service, you are able to:

  • Create customized log-in information, ensuring that only your employees will have online access to the handbook.

  • Customize your employee access page by uploading your company's logo and changing the webpage's colors.

  • Edit a greeting page, welcoming your employees to the online handbook portal

  • Access and edit any of your company policies... making changes and updates easier than ever before!

  • Request online handbook acknowledgments that, once signed, are sent directly to your inbox with the date and time of completion.

By creating an employee access account, your newly created or updated employee handbook will automatically be available to share with your employees. This service makes maintaining and updating your policies easy!

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10. Who is supposed to complete the Employee Handbook Wizard™?

The best thing about the Employee Handbook Wizard™ is that you don't need to know the first thing about HR to create a professional, high quality handbook. Whether you are a trained HR Administrator/Manager, a business owner or the "HR Hat wearer", all you have to do is answer some questions and you'll have a professional handbook ready to implement within your business.

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11. How long will it take me to create my handbook?

Depending on the completion method you select, the Handbook Wizard takes anywhere from 30 minutes to about three hours to complete. An Express Handbook is the quicker of the two handbook completion options and will create a best practice handbook based on your number of employees and how you respond to approximately 10 questions. The second completion option will walk you through the Wizard, step-by-step. This method requires you to answer more questions and also allows you to edit policy text while going through the Wizard.

However, it is important to note that it is not necessary to set aside 3 hours at one time to complete the step-by-step Wizard. We realize you are busy so we created the wizard so that you can save your work as you go and pick-up right where you left off the next time you log-in.

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12. Why should I choose Handbook Express versus the step-by-step handbook option?

If you want a professional employee handbook, but don't want to spend 3+ hours creating one, the Handbook Express option may be right for you. After providing some basic information about your company and some details about your benefits programs and timekeeping practices, you will be brought directly to the finished product: a best practice handbook based on your employee size and customized with the information you provided. You can then return to the handbook at any time and make the necessary changes.

Want to be involved every step of the way? Read about policies and make edits while going through the step-by-step version. With the step-by-step Wizard you'll never miss a beat!

13. How much does it cost?

The Employee Handbook Wizard™ is the most complete small business handbook creation tool available. The Employee Handbook Wizard™ is available for a one-time fee of $399.95, plus a nominal charge of $9.99/month after the first year of use. This maintenance fee allows you to continue using the editing tools and online access, and helps us safely and securely store your handbook online.

You can also get the Employee Handbook Wizard™ included with the HR411 ePASS for $149.95/month. Click here to learn more about the ePASS.

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14. Why do I have to pay a maintenance fee?

To continue to provide you safe, secure access to your handbook, we charge a nominal maintenance fee of $9.99/month after your first year of use. This fee allows us to improve the Wizard features, as well as covers hosting and security measures that allow us to protect your sensitive information.

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15. What policies are included within the Wizard?

The Wizard is entirely customizable, so the exact set of policies included will vary depending upon your company's specific needs. However, some of the "essentials" include:

  • Employment at-will disclaimer
  • Sexual harassment policy
  • Equal Employment Opportunity (EEO) policy
  • Disciplinary procedures
  • Leave of absence policy
  • Jury duty policy
  • Employment categories (exempt/non-exempt, full-time/part-time)

Additional policies covered include:

  • Time off benefits
  • Performance evaluations
  • Accident, emergencies, and safety procedures
  • Computer, email, and telephone use
  • Fringe benefits: bereavement leave, retirement plan, health insurance, etc.
  • And much more!

Best of all, you can even add your own unique policies or choose from our library of over 200 sample policies. Upon completing the Wizard, you will have the opportunity to add as many policies as you'd like to your employee handbook. This is especially helpful as your business grows and evolves; if new company policies take effect later, you can add them at any time.

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16. Is it easy to update?

With our Handbook Management Center you can update your handbook easily, any time. We recommend that you update your handbook regularly in order to ensure compliance with changing labor laws and changing company practices.

We make updating fast and easy. You can update any policy you wish anytime by logging into your account and navigating to the Employee Handbook Wizard page. Here, you will find a variety of editing tools which will enable you to: edit existing policies, add your own custom policies, add a policy from our library of 200 sample policies, sort policy and section orders, receive and store electronic handbook acknowledgement forms, and track the revisions you make.

To further aid you in the process of updating and managing your employee handbook, we continuously provide legal updates and alerts through HR411 so you will always be on top of the latest news and trends and can easily make the necessary adjustments to your handbook. Tips on how to update affected polices are always provided.

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17. What is the Handbook Wizard Management Center?

The Handbook Management Center contains all the tools you need to edit, update, and manage your employee handbook. The Management Center allows you to set up online Employee Access, add your own custom or sample policies, sort policy and section orders, track revisions made, store online handbook acknowledgements and get tips on implementing your employee handbook. Everything you need to edit and manage your employee handbook all in one easily accessible place!

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18. How can I learn more?

Want more information? View the Employee Handbook Wizard™ demo, view sample policies or join a Free Educational Webinar.

You can also call any of our specialists who will happy to answer questions. Reach us toll-free at 1.888.MyHR411.