Most employee handbooks do a decent job covering the basics: attendance, dress code, harassment policies. But when real-world challenges crop up, it’s often the missing policies that leave businesses scrambling.
Think about the gray areas: social media missteps, workplace romances, blurred remote work boundaries, or off-duty conduct that suddenly becomes very public. These are the kinds of messy, real-world situations that catch businesses off guard, and they’re hard to navigate without clear policies in place. Relying on “We’ll deal with it if it happens” isn’t a strategy—it’s a liability.
Here are several overlooked policies that could make a real difference and save you from a world of legal trouble.
Social Media and Online Conduct Policies
An employee’s personal social media post can quickly become a problem for their employer.
Imagine this: A new administrative assistant at a PR firm goes out for dinner with friends at a popular restaurant hotspot. The assistant is displeased with their table location and the length of time it took to receive their food. Sitting in her car before she heads home, she posts a sarcastic rant on social media about the restaurant. What she wasn’t thinking about is that the restaurant is one of her firm’s valued clients. The post makes its way back to them, and suddenly, the PR firm is in full damage control mode. Without a clear social media policy, situations like this can escalate quickly and put client relationships at risk. In this case, the firm had to issue an apology and have a serious internal conversation with the employee about professional conduct—none of which would have been necessary with better guidance upfront.
Your social media policy should outline:
- What constitutes appropriate and inappropriate online behavior
- Guidelines for identifying oneself as a company employee
- Prohibitions against cyberbullying or harassing coworkers
- Confidentiality expectations around company information
- Consequences for policy violations
While you can’t control everything employees post online, clear guidelines give you the recourse to respond when issues arise.
Workplace Dating and Nepotism Policies
Workplace relationships are more common than you might think. One in six U.S. employees went on a date with a coworker last year, and over half have dated a colleague at some point. Yet many businesses have no formal policy in place. Without clear guidelines, workplace romances, especially those involving supervisors, can lead to favoritism complaints or discrimination claims.
Consider implementing policies that address:
- Disclosure requirements for romantic relationships
- Prohibiting relationships between supervisors and direct reports
- Guidelines for conduct if a relationship ends
- Clear procedures for handling favoritism or bias complaints
Similarly, policies around nepotism, when family members work together, are just as important. They should outline how to manage working relationships when relatives are on the same team, particularly if one holds a decision-making role. Clarity helps you avoid conflicts of interest and maintain fairness across your organization.
Off-Duty Conduct and Substance Use Policies
Just like social media activity, employees’ off-the-clock behavior can reflect on your business, especially at public events or in situations where they’re visibly connected to your brand. Setting expectations in your employee handbook helps protect both your company’s image and your employees’ understanding of what’s considered acceptable.
Off-Duty Conduct
Picture this scenario: A group of employees sign up for a local charity golf tournament. Everyone is enjoying the day, but one employee has a few too many drinks. By the end of the afternoon, they’re doing cartwheels and dancing on the green in a company-branded golf shirt—cheered on by others and, of course, caught on video. The clip ends up online. It’s mostly harmless, but it doesn’t exactly scream professionalism, and your logo is front and center.
Even if the behavior isn’t offensive, it still influences how your business is perceived. Off-duty conduct policies help you draw the line between personal time and public representation.
Your handbook should cover:
- Expectations for public behavior when attending events as a company representative
- Guidance on wearing company-branded attire at social events
- Clarification on how off-hours behavior can impact professional reputation
- Steps leadership may take if public behavior reflects poorly on the company
Substance Use
Alcohol or drug use, whether on the job or during a company-sponsored event, can pose serious safety, legal, and reputational risks. In some states, recreational marijuana use is legal, for example. Regardless, employers still have the right to set boundaries around workplace use and impairment. A substance use policy ensures everyone understands the expectations, supports a safe work environment, and provides a framework for addressing violations fairly.
Your handbook should include:
- The company’s stance on alcohol and drug use during work hours or at work-related functions
- Policies on working under the influence, including legal substances that impair judgment or performance
- Whether drug testing is part of the company’s compliance or safety protocols
- Resources or support available for employees dealing with substance misuse (e.g., EAP programs)
- Disciplinary procedures for violations of the policy
Setting these boundaries ensures your team understands the line between personal freedom and professional responsibility.
Intellectual Property and Confidentiality Agreements
Even well-meaning employees may not fully understand what qualifies as confidential. Without guidance, they could unintentionally share sensitive information that damages your competitive edge.
Think of it like this: A well-meaning employee posts a harmless-seeming photo from their desk to celebrate a project milestone on LinkedIn. In the background? A whiteboard full of client names, sales projections, or product launch dates. They didn’t mean to leak sensitive information, but without clear guidance on what qualifies as confidential, that post could expose proprietary data to competitors, violate client trust, or even break a non-disclosure agreement.
Your confidentiality and IP policies should cover:
- What constitutes confidential information or trade secrets
- Handling of sensitive customer and client data
- Ownership of work created during employment
- Non-disclosure agreements for key roles
- Restrictions on using company info after employment ends
That kind of awareness is equally important in a remote setting, where casual oversights are harder to catch.
AI Usage and Data Protection Policies
We all know that artificial intelligence tools have become common in the workplace, but employee handbooks haven’t always kept up. Without guidelines, employees may unknowingly expose sensitive data in their AI prompts or create compliance issues.
As an extension of your confidentiality policies, your AI usage guidelines should include:
- Whether employees may use only company-approved AI tools
- What company data is off-limits for use with AI
- Rules for verifying the accuracy of AI-generated content
- Clarity on who owns AI-created materials
- Approval protocols for external use of AI-generated content
A clear AI use policy can help prevent everything from plagiarism concerns to data breaches—especially in regulated industries.
Termination and Resignation Protocols
If you’re the one responsible for letting someone go, you already know that it’s never just a quick goodbye. A disorganized exit process can lead to missed equipment returns, forgotten system access, and gaps in documentation that expose your company to legal and security risks.
Your handbook should clearly explain:
- Required notice periods for resignations
- Procedures for returning company property
- Final paycheck timing and process
- Expectations for exit interviews
- Non-compete and non-solicitation clauses (where enforceable)
- Your policy on providing references and employment verification
When everyone understands the rules of the road, on the way in and the way out, you reduce the risk of misunderstandings or legal disputes.
Remote Work Boundaries and Expectations
Because remote and hybrid work have become the norm for many businesses, all of your workplace policies should be reviewed to ensure they still apply and provide adequate guidance. Many companies are still winging it when it comes to putting their guidelines in writing. If that describes your company, it’s time to put some documented structure behind the flexibility.
Your employee handbook should outline:
- Availability expectations and core work hours
- Home office security and privacy standards
- Reimbursement policies for remote work expenses
- Protocols for using and maintaining company equipment
- How productivity is measured
- Etiquette for virtual meetings
Keeping Your Handbook Updated
Remember, handbooks aren’t a one-and-done document. As the workplace evolves, so should your policies. Outdated handbooks can create legal risk by giving employees outdated guidance, or worse, conflicting information.
If you haven’t explored tools that automatically keep your handbook current as state and federal laws change, check out our recent webinar on the Smart Employee Handbook Builder, part of our Commonwealth Compliance Center. It’s a simple way to stay compliant without the constant manual updates. If you’d rather handle updates manually, just be sure to schedule regular reviews so your team isn’t relying on outdated information.
Commonwealth Payroll & HR Can Help You Get It Right
We understand that building and maintaining a strong employee handbook can be a lot to manage, but you don’t have to do it alone. CommPayHR’s experts will help you build policies that not only protect your business but also support a healthy workplace culture. Our all-in-one HR platform makes it easy to share updated handbooks and track employee acknowledgments, so everyone stays informed. Make sure your employee handbook covers all the bases and works as hard as you do. Contact us to get started.
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