Although no state or federal law requires an employer to have an employee handbook, there are many policies and procedures the law does require employers to communicate to employees. Many employers use an employee handbook to describe the employer’s history, mission, values, policies, procedures, and employee benefits. A well-written employee handbook also answers many routine questions employees may have and avoids using additional time and resources of employees, the human resources (HR) department, or managers in answering those questions.

Employers often require each employee to sign a written acknowledgment of receiving the employee handbook—but must be careful not to have the handbook construed as an employment agreement, which might change the employee’s status from an at-will employee who can be fired or terminated at will to an employee who can only be fired or terminated for cause.

Employers must also be careful to avoid overly broad statements in the employee handbook that restrict the ability of employees to discuss wages and other terms and conditions of employment—including criticisms of the employer—which are known as protected, concerted activities.

In Kentucky, as in other states, there is no specific state or federal law mandating that employers provide an employee handbook. However, employers in Kentucky are required to communicate certain policies and procedures to their employees, which can be effectively done through an employee handbook. Such policies may include, but are not limited to, anti-discrimination policies, safety and health regulations, family and medical leave entitlements, and wage and hour laws. While employee handbooks can serve as a valuable resource for outlining an organization's mission, values, and employee benefits, Kentucky employers must be cautious not to inadvertently create a contractual relationship through the language used in the handbook. To maintain at-will employment status, which allows for termination without cause, the handbook should include a clear disclaimer stating that it is not an employment contract. Additionally, employers should avoid language that could be interpreted as restricting employees from engaging in protected, concerted activities, such as discussing wages or working conditions, as these are rights protected under the National Labor Relations Act (NLRA).