The basic test for determining whether a worker is an independent contractor or an employee is whether the principal has the right to control the manner and means by which the work is performed.
Small businesses can also benefit from providing their employees with an employee handbook. While they're not mandatory, a well-crafted HR handbook is a single source of information that clearly conveys company culture, practices and policies to employees.
Most employers are surprised to learn that California does not require companies to have an employee handbook.
And if your company doesn't have a handbook, managers and employees will need to rely on the company's “institutional memory” to ensure that policies are consistently applied. Work policies and expectations also take on more importance and are more likely to be followed when you codify them in an official handbook.
Most employers are surprised to learn that California does not require companies to have an employee handbook.
While there is no specific law on the federal level that requires employers to create an employee handbook, certain labor regulations may apply if you choose to create one.
California employers have the right to unilaterally change or terminate policies contained in their employee handbooks without having to be concerned about violating an implied contract of employment if they follow certain guidelines.
Most employers are surprised to learn that California does not require companies to have an employee handbook.
While an employee handbook is not legally required of employers, the lack of one can create confusion, as you note, and lead to decreased morale and potential for legal claims. With no handbook guiding them, managers are without rules to rely on.