Episode 124: Employee Handbooks & HR Policies — The Rules of the House

May 26

In this episode

When was the last time someone on your team did something and your first reaction was, "We don't have a policy for that"? That's exactly where Kerri starts in Episode 4 of the HR Foundations series — the policies and compliance episode. This is the fourth episode in a 13-part series breaking down what HR actually is, and it closes out the HR foundations block (mindset → hiring → onboarding → policies). Kerri walks through the five required policies every business needs in writing, the five strongly recommended policies that come right after, how to structure a handbook your team will actually read, and the acknowledgment and review process that turns the document from a Word file into real protection.

If hiring is the front door and onboarding is the whole house, policies are the rules of the house. Without them, every manager makes up their own — and that's where inconsistency, discrimination claims, and wrongful termination exposure start.

Key takeaways

• A handbook is a communication tool that happens to have legal weight — not a legal document. Write it in your voice.

• Policies aren't punitive. They're protective for both the employee and the employer.

• The 5 required policies: anti-harassment/anti-discrimination, at-will statement, EEO statement, pay practices, leave policy.

• The 5 strongly recommended: code of conduct (including social media), attendance & punctuality, performance & disciplinary process, confidentiality & data protection, drug & alcohol.

• Use electronic acknowledgment in your HRIS or payroll system — not pen-and-paper, not Adobe.

• Set a recurring annual review on your calendar today.

• Operate the way your handbook reads. If you don't, you've negated it — and a smart employee will use that against you.

Timestamps

00:00 — Cold open: "We don't have a policy for that"

00:30 — Why a handbook isn't a binder nobody reads

02:20 — Series context — where this fits in HR Foundations (episode 4 of 13)

04:30 — What happens without policies — inconsistency, discrimination, harassment exposure

06:00 — The 5 required policies

11:30 — The 5 strongly recommended policies

16:00 — Recommended handbook structure

19:00 — Acknowledgment workflow & annual review

23:00 — AI tips for drafting policies in your own voice

25:30 — Operate the way your handbook reads (wrongful termination risk)

27:30 — Real client example: the relocation reimbursement gap

29:30 — Resources, next episode preview, and CTA

A few quotable moments

"A policy is not punitive — it's protective. It protects the employee and the employer."

"'We don't have a policy for that' is not a defense. It's just irresponsibility."

"If your handbook reads like a lawyer wrote it, no one is going to follow it."

"Family members still need to know the rules of the house."

Resources mentioned

• The HR Easy Button (book): amzn.to/4cPyrFh

• HR Foundations course (four modules — mindset, hiring, onboarding, HR law): saltandlightadvisors.com/hrfoundations

• Free mini HR Audit: saltandlightadvisors.com/hraudit

• Contact Kerri (fractional HR or full audit): saltandlightadvisors.com/contact

What's next

Episode 5: Compensation & Classification — exempt vs. non-exempt, pay equity, and how to build a compensation structure that's fair and defensible. Subscribe so you don't miss it.

Full transcript

Kerri Roberts (00:00.962): When was the last time somebody did something on your team and you said, we don't have a policy for that? That is what today's episode is all about. Most organizations that I talk to have policies scattered somewhere, right? A Google Drive, maybe something verbally that we've shared in, or maybe something in an email. Or maybe we do have a handbook and it's just outdated. The handbook is not a binder that nobody reads. If that's your perspective on a handbook, you're wrong. That's just not accurate. It's a single document that sets the standard for everyone. For everyone. If there's no handbook, decisions are being made. There are decisions being made every single time something happens, which means inconsistency, which means potential legal exposure. And it means that there's a large portion of your employee population who would like to know what the heck is going on. So that's what we're getting into today. We're talking handbooks and it's not going to be boring, I assure you, and you're gonna walk away knowing much more clearly what to do. So welcome back to another episode of Don't Waste the Chaos. I'm your host, Kerri Roberts. I've been in HR for over 20 years. I was in corporate. Then I went out on my own. I've been out on my own for the last three years. I've worked across industries, sizes of organizations, ESOPs and all kinds of stuff. And I am pulling all of that experience together and pouring it into this series.

(02:20): If you're catching this episode, this is the fourth episode inside of a 13-part series. The first one was around why we're doing all of this — the mindset behind HR. Then we got into hiring, then onboarding, and this week we're getting into policies and compliance — the HR law side of things. Those first four episodes make up my HR Foundations. We're going to be getting into HR operations next, but we have to start with the foundation. If you haven't listened to the previous episodes, I recommend you go back. Another way to tackle the HR foundations: I have my book, The HR Easy Button, on Amazon or on my website saltandlightadvisors.com. Or I've got my course at saltandlightadvisors.com/hrfoundations. Four modules — mindset, hiring, onboarding, HR law — under $400, and every module is a video of me teaching for almost an hour. I also give two to three downloadable tools and resources per module — scripts for tough conversations, termination checklists, termination letter templates. Stick around. Don't forget to subscribe.

(04:30): This week is the one that holds everything in place — the HR law, the compliance, the policy aspect. If hiring is the front door and onboarding is the whole house, then policies are the rules of the house. Without them, everyone's making up their own. Here's the most common thing I hear when I'm talking to small to mid-sized businesses: "We're small, we don't need a handbook, we're like family." And to that I say, I'm so glad it's worked out for you so far. Family members still need to know the rules of the house. I have a 14-year-old, and we have constant rules of the house I'm communicating. Something will go wrong. "We don't have a policy for that" is not a defense. That's just irresponsibility.

(06:00): What happens without policies? One manager gives three days for a death in the family. Another gives one. Inconsistency claim. You discipline one employee for being late, but another doing the same thing — different manager — gets nothing. Potential discrimination claim. An employee is harassed and you have no harassment policy and didn't do any training. You are liable. Policies are not punitive — they're protective for both the employee and the employer. So let's get into required policies. I'm giving you five — there's more, but these five I think are required for every single company.

(06:30) — Required Policy 1 — Anti-discrimination and anti-harassment. Define what it is. Define how to report it. Outline your investigation process. Then follow it. Must be in writing, communicated, enforced consistently. Title VII, ADA, ADEA — these matter to all of us, even micro businesses.

(07:30) — Required Policy 2 — At-will employment statement. I operate in Missouri, which is at-will. This needs to be explicit in the handbook. Verbal statements alone don't cut it. Written, acknowledged.

(08:00) — Required Policy 3 — Equal Opportunity Employer statement. Brief but required. Applies across hiring, promotions, performance management, compensation, termination.

(08:30) — Required Policy 4 — Pay practices. When and how and what methods you use. How are people going to get paid? Whether they're attached to the purpose of your organization or not, most people aren't doing this for free. How often do you pay? What's your overtime policy? How is time tracked? What happens if a paycheck is wrong? Fair Labor Standards Act compliance — especially for non-exempt employees.

(09:30) — Required Policy 5 — Leave policy. People are going to take off work. Do you have paid vacation? Sick leave? What does your state require? FMLA if you're an applicable large employer — 50+ full-time equivalents. And if you don't know how to calculate a full-time equivalent, you need to do a little research. It's not just how many full-time employees you have. Document what leave looks like even if you're not an ALE — for caregivers, cancer diagnoses, extended unpaid leave. Bereavement, jury duty, military leave, voting — decide the standard before you're asked.

(11:30): Now strongly recommended policies. (1) Code of conduct or workplace behavior. If you don't have a mission/vision/values, this is how we treat each other, our clients, society. Inside of this I recommend a social media policy. I've had clients ask how to handle an employee's post — the first question I ask is what your social media policy looks like. I did a comprehensive training for a public school district right after the Charlie Kirk assassination because an employee made a very lewd comment and people were calling for resignation — they had no policy. I built online modules, a quiz, comprehension acknowledgement, the whole nine yards. (2) Attendance and punctuality. What counts as a tardy? A no-call/no-show? Progressive response? Inconsistency here is one of the most common claims I see. (3) Performance expectations and disciplinary action. Verbal, written, final written or PIP, termination. Employees should know the process before they're in it. (4) Confidentiality and data protection — including a tech policy. (5) Drug and alcohol policy if it's applicable.

(16:00): A handbook is a communication tool that happens to have legal weight. Here's the structure I recommend: welcome and company overview, employment basics (at-will, EEO, classifications), pay and hours (FLSA, overtime, timekeeping), time off and leave (PTO, sick, bereavement, FMLA if applicable), workplace conduct (harassment, code of conduct, attendance), performance and discipline (expectations and progressive process), separation (resignation, termination, final pay, PTO payout terms), and an acknowledgment page.

(19:00): Acknowledgment is your evidence that you gave it and everyone read it. Do not do this manually. Don't even do it in Adobe. Use your HR/payroll system — Gusto, Rippling, ADP, UKG, Paycor, Paychex — or even QuickBooks at the smallest end. Upload the document, get it electronically acknowledged. Communicate any changes. Don't be tricky and update something silently. Annually I review handbooks with clients. Set a calendar reminder right now.

(23:00): Your handbook does not need to sound like a lawyer wrote it. Could a brand-new employee pick it up, read it, and know how to operate? That's the test. Here's an AI tip — same move I mentioned during the hiring episode. Turn on your mic feature, just dump your thoughts about a policy or your company, have AI draft it, then edit into your voice. Drop a Teams meeting transcript on policy discussions into AI and have it draft the policy. Just make sure an HR pro or attorney has oversight to keep it relevant to your state's laws.

(25:30): Here's an example. You discipline an employee for something in the handbook, but they read the handbook and find areas where you don't actually follow it in practice. "You're going to hold me to this but you all don't hold yourselves to your own handbook." Negated. Wrongful termination. I've seen it happen. Operate the way your handbook is written. This doesn't need to be 60 pages. You need clear, current, signed acknowledgment.

(27:30): A real example. A few days ago a client had a new hire moving from the Northeast and they offered "up to $5,000 in relocation." The new hire submitted documentation, some felt odd. They had no policy and the offer wasn't specific. I drafted them a policy and a response: relocation reimbursement covers expenses tied to actually relocating, not first month's rent (you'd pay that anywhere), not your security deposit (that's refundable), not an oil change. If that frustrates them, write the check for $5,000 — it's taxable as bonus compensation anyway. But going forward we need a policy and parameters, signed before the next person submits receipts.

(29:30): If you want to go deeper, I have an hour-long course on this, plus tools and decision trees in my HR Foundations course at saltandlightadvisors.com/hrfoundations. Or pick up The HR Easy Button — I go into this in great depth in a couple of chapters. Or reach out at saltandlightadvisors.com/contact. I also recommend my free mini HR audit at saltandlightadvisors.com/hraudit — it gives you a score and tells you whether you're solid, need attention, or are high risk on these foundational areas. Stick around for next episode — compensation and classification, exempt vs. non-exempt, pay equity, building a compensation structure that's fair and defensible. Don't waste the chaos friends — embrace it. Until next time.

If this episode hit home, you'll love the weekly Monday newsletter — same voice, bite-sized HR insights you can actually use, in your inbox every week: saltandlight.myflodesk.com/saltandlightadvisors