Why You Should Read
Your Employee Handbook

Very few employees read the Employee Handbook they get when they start a new job, but they should. An Employee Handbook can set the expectations for the employee and also what is required by law for the employer. It often clarifies various obligations the employer has both under the law and which it agrees to take on. Sometimes, an Employee Handbook can be considered an implied contract under New Jersey law, which creates greater employee protection. But you have to know what the Handbook says to benefit from its potential protections.

The New Jersey Supreme Court has found an implied contract may be found if the language in the Handbook contains an “express or implied promise concerning the terms and conditions of employment.” It describes the conditions of employment and by continuing to work, the employee accepts the employer’s offer and required conditions of employment.

An Employee Handbook may change an employee’s “at-will” (in general, termination for any reason or no reason, except for discrimination and retaliation) status due to creating such an implied contract. By putting in writing terms and conditions of employment that include grounds and procedures for suspension or termination, this might create an employment contract enforceable against the employer if it breaches the “implied contract.”

For example, without a clear and prominent disclaimer to the contrary, an implied promise that an employee will be fired only for cause might be enforceable against the employer, even if the employee is at-will. Employees should read their Employee Handbook to be aware of whether such provisions may be present in your own respective handbook. Always keep it “findable” if necessary and if it’s online, print out a copy.

If there’s no “prominent disclaimer,” an employer must abide by the terms of the Handbook and any policy in it must always comply with federal and state employment laws. It may outline disciplinary policies, procedures, and identify any benefits employees may or may not be entitled to during their employment and on termination. It may define reporting procedures for workplace misconduct. This language can create expectations for the employer’s conduct and protections for both employer and employee.

Employees are also expected to abide by the policies for their workplace in the Employee Handbook. Following or ignoring those policies may help or hurt later.

An Employee Handbook is supposed to set expectations of both employer and employee, as well as – potentially – protect each in case of disputes. Most important for both, it may be an implied contract, which can give an employee something more than an at-will status.

Makayla Newman is a law clerk at Kates Nussman Ellis Farhi & Earle. She is a second-year law student at Rutgers Law School in Camden, NJ where she is an Associate Editor for the Women’s Rights Law Reporter.