Most companies have policies or procedures governing their employment practices, but they're sometimes maintained informally. This can lead to inconsistent application and confusion about employer and employee rights and responsibilities. An employee handbook formalizes those policies so that employees have a written resource to read and reference. Here are some key steps to consider as you create an employee handbook or update an existing one. #1: Know your history. Your company's history, practices, and culture will help set the tone of your handbook and determine what policies to include (see below). Also staying on top of new and changing compliance requirements may necessitate new or updated policies. Think about the information you most need to convey to employees, areas of misunderstanding or confusion, and frequent questions you receive from employees. #2: Identify required policies. Although there's no law that requires a written employee handbook, there are laws that require employers to maintain certain policies in writing. For example, a growing number of jurisdictions require employers to maintain written policies on harassment, discrimination, leave of absence and other time off, and/or workplace safety and health rules. In addition, some state and local laws require employers that maintain an employee handbook to include certain information. For instance, Colorado requires employers with an employee handbook to include a copy of the Colorado Overtime and Minimum Pay Standards (COMPS) Order (or poster). Review all required policies that are applicable to your business and include them in your handbook. #3: Include other must-have policies. Even when there isn't a specific requirement, certain policies are essential for conveying important information. Some examples include: A prominent at-will statement in the beginning of your employee handbook (except in Montana, where at-will employment is not recognized). This statement reiterates that, absent certain exceptions, either you or the employee can terminate the employment relationship at any time and for any reason. Employment classifications, meal and rest periods, timekeeping and pay, employee conduct, attendance, and punctuality. Anti-harassment, nondiscrimination, leave of absence, and workplace safety and health. #4: Know what policies to avoid. Just as important as understanding what policies to include is knowing what policies to avoid