In California, Employee handbooks can be an important tool to protect employers from employment law liability.  A properly drafted employee handbook can maintain management discretion, clearly communicate the employer’s expectations, and provide significant protection against discrimination, harassment, retaliation and wage and hour lawsuits.  Every employer, no matter how small, should consider creating and maintaining an employee handbook.  However, employee handbooks can get employers into trouble, if they are not careful.  It is better for an employer not to have an employee handbook at all, then to have an employee handbook that (i) is not drafted or at least revised by a qualified employment law attorney, (ii) is not updated in concert with such an attorney every year or two, (iii) provides little flexibility to management, and/or (iv) contains policies that are not judiciously followed by the employer.   Employee handbooks, if created and used correctly, can be very beneficial to employers.  However, if a handbook is ill conceived, neglected or abused, it can defiantly cause more problems for the employer than it solves.  –Adam K. Treiger