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 Arizona, while there is no specific state or federal law mandating that employers provide an employee handbook, it is a common practice for employers to use handbooks to communicate company policies, procedures, and employee benefits. These handbooks often include information about the company's history, mission, values, and answers to frequently asked questions, which can save time for HR departments and managers. Arizona follows the at-will employment doctrine, meaning that in the absence of a contract stating otherwise, an employer can terminate an employee at any time for any legal reason, and an employee can also leave at any time. To maintain this at-will status, employers in Arizona must ensure that their handbooks do not inadvertently create a contractual obligation, which could be interpreted as altering the at-will relationship. This can be achieved by including a clear disclaimer stating that the handbook is not an employment contract. Additionally, employers must be cautious not to include language in the handbook that could be seen as restricting employees from engaging in protected, concerted activities, such as discussing wages, benefits, or other terms and conditions of employment, as these are protected under the National Labor Relations Act (NLRA).