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 North Carolina (NC), 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 one to effectively communicate company policies, procedures, and employee benefits. An employee handbook can serve as a valuable resource for employees, HR departments, and managers by consolidating important information and reducing the need for repetitive inquiries. In NC, as in other states, employers often ask employees to acknowledge receipt of the handbook to ensure they are informed about company policies. However, it is crucial for employers to draft the handbook in a way that does not inadvertently create a contractual agreement, which could potentially alter the at-will employment relationship. At-will employment allows for termination of employment by either party without cause, and employers must be cautious not to include language in the handbook that could be interpreted as providing for termination only for cause. Additionally, employers must avoid language that could be seen as limiting employees' rights to engage in protected, concerted activities, such as discussing wages, working conditions, or criticisms of the employer, as these are protected under the National Labor Relations Act (NLRA).