Is an Employee Handbook a Contract?
Employee Handbooks: Contracts vs. PoliciesMost employment handbooks include language explicitly stating they are not contracts. Additionally, they often emphasize that employment remains "at will," meaning the employer can modify policies at their discretion.
Employers who use employee handbooks should be sure to include this language. This allows the employer flexibility in changing policies from time to time as needed for the business. Implied Contracts in HandbooksIn rare cases, an employee handbook's wording or presentation can create an implied contract. This occurs when a court determines that it was reasonable for an employee to believe a binding promise was made. However, Massachusetts courts seldom find implied contracts in handbooks, especially when the handbook explicitly disclaims contractual intent.
Employer Obligations Regarding HandbooksIgnoring handbook provisions can carry risks. If faced with a wrongful termination claim, employers must provide a legitimate business reason for the termination. Deviating from established procedures, as outlined in the handbook, could be seen as evidence of pretext.
Furthermore, in unemployment disputes, employers challenging an employee's eligibility for benefits must demonstrate consistent and uniform enforcement of handbook policies. Employee Handbooks: Benefits, Enforceability, and Best PracticesMany employers often wonder why they should have a handbook if it's not legally enforceable. However, there are several compelling reasons to maintain an employee handbook:
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Meet Our Employment Lawyers
Emily Smith-Lee is the owner and founder of slnlaw. She is a 1996 graduate of Boston College Law School. She was previously a partner at the Boston office of a large international firm, where she worked for thirteen years before starting the firm that became slnlaw in 2009. She has been recognized as Massachusetts Superlawyer each year since 2013, and in 2018 earned recognition as one of Massachusetts Lawyers Weekly's Lawyers of the Year. She has written a book on employment law: Rules of the Road, What You Need to Know About Employment Laws in Massachusetts, and helped thousands of clients on both the employee and employer side with severance and non compete review and negotiation, wage and hour, discrimination and retaliation disputes, and advice about employment law generally.
Rebecca Rogers: Rebecca is a 2006 graduate of Boston College Law School, and has worked with slnlaw since 2013. She previously worked as an intellectual property litigation attorney for Fish & Richardson in Boston, Massachusetts, and clerked for the Massachusetts Supreme Judicial Court. Rebecca has helped clients with wage and hour disputes, employment discrimination and retaliation claims, review and negotiation of severance and non compete agreements, and advice to both employees and employers about navigating complex employment situations.
Jenna Ordway: Jenna is a 2013 graduate of Quinnipiac Law School, and also earned an LLM in Taxation from Boston University in 2015. She has been affiliated with slnlaw since 2011, first as a law clerk and then as an attorney. Jenna has been recognized since 2019 as a "Rising Star" by Massachusetts Superlawyers. Jenna has helped clients with review and negotiation of severance and non compete agreements, wage and hour disputes, employment and discrimination claims, and advice to small business owners about employment law and other business matters.
Elijah Bresley: Eli is a 2014 graduate of Seton Hall Law school, and has worked with slnlaw since 2020. He previously worked for a boutique employment law firm outside of Boston, and then for the Labor and Employment department of a large Boston firm. He also spent a year clerking for the judges of the Superior Court in Hartford, Connecticut. Eli has helped clients on the employee and employer side with all varieties of employment law issues, including employment discrimination, retaliation, and wage and hour issues, litigation in MCAD and state and federal courts, and advising employers about employment policies and practices.
Sharleen Tinnin: Sharleen is a 2010 graduate of Northeastern University School of Law, and has been with slnlaw since 2023. Prior to joining slnlaw, she worked with King, Tilden, McEttrick & Brink, P.C. on complex civil litigation matters. She previously worked for the United States Department of Justice, and received an "Excellence in Justice" award in 2017. Sharleen has helped clients with wage and hour, discrimination and retaliation disputes, review and negotiation of severance agreements, and litigation in MCAD and state and federal courts on employment related issues.
How We Can Help
At slnlaw, we specialize in providing comprehensive guidance on employment policies, handbooks, and legal compliance. Our team of experienced employment attorneys can assist you in creating and maintaining employee handbooks that align with your business needs while minimizing legal risks. You can use the button below to schedule a call back from a member of our team, or give us a call at 781-784-2322.
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