Key Provisions to Include in Employee Handbooks

For many Virginia employers and employees, the employee handbook is often treated as an onboarding formality — a “one look” document that neither party will likely ever revisit. But that approach is risky from an employment law perspective. In employment litigation, employee handbooks are often key evidence used to evaluate whether an employer followed its internal policies, complied with federal and state law, or inadvertently created contractual obligations, among other issues. A well-drafted employee handbook can establish expectations, prevent disputes, and demonstrate compliance with employment laws. Below are key provisions our Richmond employment lawyers often recommend employers include in their employee handbooks.

At-Will Employment Disclaimer

Virginia is an at-will employment jurisdiction, meaning that employers can generally hire and terminate employees for any reason or for no reason. The presumption that an employment relationship is at-will can be overcome by an employment contract. It can also be undermined by a poorly drafted employee handbook that creates the appearance of an employment contract. As such, employee handbooks should contain an at-will disclaimer that:

Clearly states that employment is at-will
Emphasizes that the handbook is not a contract
Clarifies that no policy alters an employee’s at-will status unless contained in a separate agreement

While Virginia courts are generally disinclined to treat employee handbooks as contracts, certain language can create the impression that continued employment is promised absent cause for termination. Accordingly, you should consider speaking to a Richmond employment lawyer to draft an effective at-will disclaimer.

Equal Employment Opportunity (EEO) Policies

EEO policies incorporated into employee handbooks serve a twofold purpose — apprising employees of their right to be free from employment discrimination and providing employers with potential defenses to employment discrimination claims. EEO policies should prohibit discrimination and harassment based on federal law, including Title VII of the Civil Rights Act, the Americans with Disabilities Act, and the Age Discrimination in Employment Act. Employee handbooks should also incorporate the provisions of the Virginia Human Rights Act, as those protections are broader than those available under federal law.

Discrimination and Harassment Complaint Procedures

Rote recitation of the protections of federal and commonwealth law may not be enough to mitigate the risk of employment discrimination lawsuits. Most employers would be well-served by going the extra mile and including a clear anti-discrimination and harassment policy and procedures for reporting the same. Key components of an anti-discrimination policy and reporting procedure may include:

A clear definition of discrimination and harassment (including sexual harassment)
Multiple avenues and clearly defined procedures for reporting complaints
A commitment to prompt, thorough, and unbiased investigations
A strong anti-retaliation statement

Inclusion of such policies can help root out unlawful employment discrimination and rebut allegations that employers created a hostile work environment. For more information on drafting robust anti-discrimination policies and preventing workplace discrimination, please contact a Richmond employment lawyer.

Wage and Hour Policies

Wage and hour claims, including those based on Fair Labor Standards Act (FLSA) misclassification, are among the most common and costly in employment litigation. A well-drafted employee handbook should thus address such matters before they escalate into legal disputes. Generally, wage and hour policies should include:

Clear categorizations of employees as FLSA-exempt and FLSA-non-exempt
Overtime policies (including approval requirements)
Timekeeping procedures
Prohibition of off-the-clock work

With wage theft claims on the rise and increased legislative and regulatory scrutiny of the treatment of low-wage employees, employers should exercise particular caution when drafting wage-and-hour policies.

Leave Policies

Virginia employers are not yet required to provide employees with paid leave (more on that below). However, most employees are nonetheless legally entitled to take unpaid leave under the federal Family and Medical Leave Act (FMLA), which allows for up to 12 weeks of job-protected leave within a 12-month period. Leave policies in employee handbooks generally should address:

FMLA eligibility and procedures
Employer-offered paid leave (if applicable)
Obligations for notice and medical certification
Use of paid leave in conjunction with unpaid leave

Readers should note that Virginia law will require most employers to provide paid family, medical, and safe leave beginning in 2028. Contact a Richmond employment lawyer for more information about how to prepare for this change.

Procedures for Reasonable Accommodations

The Americans with Disabilities Act (ADA) requires employers to provide reasonable accommodations for qualified employees and applicants with disabilities. And because the Equal Employment Opportunity Commission requires employers and employees to engage in an “interactive process” to work out reasonable accommodations, employee handbooks should:

Outline the process for requesting accommodations
Define each party’s role in the interactive process
Assure confidentiality of medical information

Failure to engage in a documented, good-faith interactive process is a frequent basis of disability discrimination lawsuits, making ADA provisions and compliance therewith especially important in employee handbooks.

Code of Conduct and Disciplinary Procedures

A code of conduct sets expectations and provides a consistent framework for addressing performance issues. Codes of conduct typically touch on:

Attendance and punctuality standards
Workplace violence, threats, and zero-tolerance policies
Drug and alcohol use
Harassment and bullying (beyond statutorily protected categories)
Conflicts of interest (i.e., self-dealing, vendor relationships, etc.)
Confidentiality of employer information
Use of employer property
Expense reporting and reimbursement
Data privacy and cybersecurity practices
Dress code and grooming standards
Political activity in the workplace
Use of social media
Workplace romances

In addition to setting expectations for employee conduct, employee handbooks should also outline disciplinary procedures should an employee be accused of breaching the code of conduct. If disciplinary procedures are progressive, state what employees can expect at each stage. If certain breaches result in immediate termination — e.g., gross misconduct — state how such disciplinary procedures are to operate.

Draft an Employee Handbook That Covers All Your Bases With Help From a Richmond Employment Attorney

The best way to craft an employee handbook tailored to your business and that covers all your bases is to work with an experienced attorney. To get started, please contact a Richmond employment attorney at Pierce / Jewett by calling 804-502-2320 or using our online contact form.