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 Utah, as in other states, there is no specific state or federal law mandating that employers provide an employee handbook. However, employers in Utah often create handbooks to communicate important policies and procedures, including those that are legally required to be disclosed to employees, such as anti-discrimination policies, safety and health regulations, and family and medical leave entitlements. These handbooks serve to inform employees about the company's mission, values, and benefits, and can streamline HR processes by addressing common questions. When distributing handbooks, Utah employers typically ask employees to acknowledge receipt to confirm that the policies have been communicated. It is crucial for employers to ensure that the language in the handbook does not inadvertently create a contractual obligation, which could alter the at-will employment relationship. Additionally, employers must be cautious not to include provisions that could be interpreted as limiting employees' rights to engage in protected, concerted activities, such as discussing wages or other employment terms, as protected under the National Labor Relations Act (NLRA).