A small business owner has a lot on their plate. Hiring employees, serving customers, managing finances, and keeping the business moving can leave very little time for reviewing every policy and procedure in an employee handbook.
That is why it can be tempting to take an employee handbook from a previous employer, find a template online, or borrow policies from another business and simply replace the company name.
It may seem like an easy way to save time and money.
But an employee handbook is not just a collection of standard workplace rules. It can create expectations, establish policies, and in some circumstances become an important part of an employment relationship. If the handbook contains policies that do not actually apply to your business, you could create problems that are much more difficult and expensive to fix later.
For small businesses, having an employee handbook that actually fits the company can be an important part of sound employment practices. If you operate in Georgia and need help understanding your employment obligations, speaking with employment lawyers in Augusta can help you evaluate your specific situation.
A Handbook Written for Another Business May Not Fit Yours
One of the biggest problems with copying an existing handbook is simple: the handbook was written for someone else’s business.
A large company may have hundreds or thousands of employees, dedicated human resources staff, and the resources to offer benefits and leave programs that a small business cannot reasonably provide.
A five-person business operates very differently.
Yet it is not uncommon for a new business owner to take an employee handbook from a previous job and use it as the foundation for their own company. The owner may assume that because the language appeared in a legitimate handbook, every business should use the same language.
That assumption can be dangerous.
Employment laws often depend on factors such as employer size, the type of employer, the employee’s circumstances, and the particular benefit or policy involved. A policy that makes sense for a large employer may be unnecessary, inapplicable, or simply unsuitable for a smaller company.
That is why a small business employee handbook should be developed around the actual business instead of copied from another employer.
The Problem With Promising Benefits You Are Not Required to Provide
Consider something as sensitive as leave.
A business owner may copy language about maternity leave, medical leave, family leave, or other employee benefits into a handbook without understanding when those policies are legally required.
The problem becomes much bigger if the company then follows that policy.
Suppose an employee asks for a benefit described in the handbook. The business owner provides it because the handbook says the employee is entitled to it. Later, another employee asks for the same benefit.
Now the owner may find themselves asking a difficult question:
“How do I tell the second employee no?”
That is the kind of situation that can arise when a business adopts policies without first determining whether those policies are appropriate for the company.
Federal employment laws also have specific coverage requirements and exemptions. For example, the Family and Medical Leave Act, commonly known as FMLA, does not apply to every employer or every employee. Other federal and state employment laws have their own requirements.
The important point is not to assume that every policy in a handbook applies to every business.
Your Handbook Can Create Expectations
Many business owners think of an employee handbook as an internal document that can be changed whenever they want.
That may be an oversimplification.
The language in a handbook can matter because employees may rely on the policies communicated to them. Depending on the circumstances and applicable state law, promises or representations contained in employment documents can create legal issues for an employer.
This is particularly important when the handbook describes benefits, procedures, disciplinary practices, leave policies, or other employment conditions.
For businesses operating in Georgia, state employment law can affect how particular handbook provisions are interpreted and enforced.
If you are unsure about an employment policy or how it may affect your business, consulting an employment attorney in Augusta, GA can help you understand the legal considerations before a dispute develops.
Copying a Handbook Can Create Compliance Problems
Another concern is that an outdated handbook may contain policies that no longer reflect current law.
Employment law changes. Federal regulations change. State requirements change. Businesses change.
A handbook that was appropriate several years ago may not be appropriate today.
Copying an old handbook can therefore introduce multiple layers of risk:
- Policies may reference laws that do not apply to the business.
- Employee benefits may be described incorrectly.
- Leave policies may not reflect current requirements.
- Workplace procedures may be inconsistent with how the company actually operates.
- Outdated terminology may create confusion.
- Policies may contain promises the company does not intend to make.
- Policies may conflict with one another.
A handbook should support the way a business operates rather than force the business to operate according to a document written for somebody else.
Why Small Businesses Should Have Customized Policies
The goal of an employee handbook is not to make a small company look like a large corporation.
The goal is to establish clear and appropriate expectations.
A customized handbook can address the policies that actually matter to the business. It can explain workplace expectations, compensation practices, time-off procedures, employee conduct, disciplinary procedures, and other relevant policies while avoiding unnecessary provisions that do not fit the company.
This is where professional legal guidance can make a difference.
An attorney can help identify which provisions are required, which are recommended, and which may create unnecessary obligations.
The same principle applies when reviewing an existing handbook. If a business owner already has a handbook, the answer is not necessarily to throw it away and start over. A legal review can help determine which provisions should remain, which should be revised, and which should be removed.
Businesses that need broader legal assistance can also review the firm’s attorneys in Augusta to identify the appropriate legal professional for their needs.
Saving Money at the Beginning Can Cost More Later
One reason business owners use copied handbooks is understandable: they want to control expenses.
Small businesses have budgets. Every expense matters.
But legal documents are one area where saving a little money at the beginning can create a much larger problem later.
If a business owner spends time dealing with an employee dispute because a handbook contained an inappropriate promise, the cost can extend well beyond the price of having the handbook properly prepared.
There may be attorney fees, lost management time, employee disruption, and the potential cost of resolving the underlying dispute.
A handbook should therefore be viewed as part of the business’s legal infrastructure, not simply another document to download from the internet.
What Should a Small Business Owner Do?
Start by looking at the handbook you currently use.
Ask:
- Was this handbook written specifically for my business?
- Do all of these policies actually apply to my company?
- Are the benefits and leave provisions accurate?
- Does the handbook reflect how the company operates today?
- Have the policies been reviewed as employment laws have changed?
- Are we actually following the policies we have written?
- Does the handbook create promises that the business does not intend to make?
If you cannot confidently answer those questions, it may be time to have the handbook reviewed.
The objective is not to create the longest possible handbook. It is to create a useful document that accurately reflects the company’s practices and legal obligations.
Your Employee Handbook Should Fit Your Business
There is no universal employee handbook that works perfectly for every employer.
A five-person business should not automatically use the same handbook as a company with several hundred employees. Different businesses have different needs, different benefits, different workplace structures, and potentially different legal obligations.
Copying an employee handbook may feel like an efficient shortcut, but it can create obligations and expectations that a business owner never intended to make.
For small businesses, the better approach is to create employment policies deliberately and review them before they become a problem.
A properly prepared small business employee handbook should be more than a collection of borrowed policies. It should be a document that reflects the business, supports consistent workplace practices, and takes applicable employment laws into account.
If you are unsure whether your current handbook actually fits your business, getting legal advice before an employment dispute arises can be far less complicated than trying to fix the problem afterward.
This article is for general educational purposes and is not a substitute for legal advice. Employment laws can vary based on the facts, employer, employee, and jurisdiction.