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 Massachusetts, while there is no specific state or federal law mandating the creation of an employee handbook, employers are required to communicate certain policies and procedures to their employees. These may include, but are not limited to, anti-discrimination policies, sexual harassment policies, family and medical leave policies, and policies regarding wages and hours worked. Employers in Massachusetts often use employee handbooks to convey this information as well as to outline the company's mission, values, and employee benefits. When distributing handbooks, employers typically ask employees to acknowledge receipt to confirm that they have access to the company's policies and procedures. However, it is crucial for employers to ensure that the language in the handbook does not inadvertently create a contractual agreement with the employee, which could alter the at-will employment relationship. Additionally, employers must be cautious not to include provisions that could be interpreted as restricting employees from engaging in protected, concerted activities, such as discussing wages or other terms and conditions of employment, as these are protected under the National Labor Relations Act (NLRA).