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 Mexico (NM), 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 procedures. These handbooks typically include information about the company's history, mission, values, policies, procedures, and employee benefits. They serve to answer frequently asked questions, saving time for employees and HR departments. In NM, as in other states, employers often ask 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 Mexico 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, the handbook should not imply that employment can only be terminated for cause. Additionally, employers must be cautious not to include language in the handbook that could be interpreted as restricting employees' rights to discuss wages, working conditions, or to engage in other protected, concerted activities, as these are protected under the National Labor Relations Act (NLRA).