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 New Jersey, while there is no specific state or federal law mandating that employers provide an employee handbook, it is a common practice for employers to distribute handbooks to communicate various policies and legal obligations. These handbooks typically outline the company's history, mission, values, policies, procedures, and employee benefits, serving as a resource for employees to understand their rights and responsibilities within the company. Employers in New Jersey often require employees to acknowledge receipt of the handbook to ensure that they are informed of company policies. However, it is crucial for employers to draft the handbook in a way that does not inadvertently create a contractual agreement with employees. New Jersey follows the at-will employment doctrine, meaning that, in the absence of a contract stating otherwise, employees can be terminated at any time for any legal reason. To maintain this at-will status, handbooks should include a clear disclaimer that the handbook is not an employment contract. Additionally, employers must be cautious not to include language in the handbook that could be interpreted as restricting employees' rights to engage in protected, concerted activities, such as discussing wages, benefits, and other terms and conditions of employment, as these rights are protected under the National Labor Relations Act (NLRA).