The Importance of the Employee Handbook & 2021 Updates

An employee handbook serves as a guide for employees and employers. The handbook is a tool to provide clear expectations and rules.  It defines ground rules and explains what is and is not considered acceptable behavior. Done properly, an employee handbook is a great first line of defense for a variety of legal issues.

However, if an employee handbook is done improperly, it can lead to confusion, anger and lawsuits. The sections contained in the handbook need to be carefully worded in order to avoid those pitfalls.  Generally, laws regarding employees and employees are drafted in favor of the employee so without the protections offered in an employee handbook, the employer is open to more risk.

Although some federal regulations such as Title VII and the Americans with Disabilities Act do not go into effect until you have 15 or more employees, a business of any size can be sued for other employment-related issues.

To minimize your risks, it is important to have a relationship with an employment law attorney who will update you of any federal or state required changes.

Other ways to minimize risks include an annual handbook review. As the world changes, you may need to create new policies that reflect the changes in the law and your employee handbook should reflect those changes.  For example, think of the changes to the workplace over the past few years like health care reform, more employees are able to work from home, working parents and the balance between home and work life, the use of personal mobile devices and so many others.

In addition, the handbook should be reviewed to make sure the documented polices that are included in the book are consistently followed and are a reflection of the culture of your work environment.  If the policies in the handbook are not followed and not a reflection of your work environment, you will have a weak defense if a dispute arises.

Remember–keeping current with employment legislation is essential to protecting your business. 2020 was a big year in employment law.


  1. Remote work policies: If your employee handbook didn’t address this topic before, it most likely does now. As COVID-19 stretches into 2021, your company’s remote work policy should be revised to better reflect the guidelines and expectations while an employee is conducting work at home. The provision should also incorporate data security measures and expectations for all remote workers.
  2. New Protections: In June of 2021, the U.S. Supreme Court ruled that employers cannot fire workers for being LGBTQ+.  If your company has not already done so, you will need to make sure this provision is included with existing anti-discrimination policies.
  3. Employment Leave Requirements: As of January 1, 2021 the Family First Coronavirus Response Act (FFCRA) will no longer require covered employers to provide 80 hours of emergency paid sick leave nor up to 12 weeks of partially paid emergency Family and Medical Leave Act (FMLA) under the EFMLEA provisions. However, your company may voluntarily provide FFCRA leave and claim a corresponding tax credit until March 31, 2021.


Remember, it’s not enough just to update the handbook.  Clearly communicating any change or policy update to all employees is also required. To ensure you are compliant with all federal and state requirements, you’ll want to contact an experienced business attorney to review your specific situation.

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