While no federal or state law (in Colorado) requires a private employer to have an employee handbook, there are many benefits to having one, including informing employees of policies and procedures and demonstrating compliance with applicable laws.  There are, however, risks associated with employee handbooks, including the possibility that handbook provisions are deemed contractual in nature.  For example, an employee may argue that certain provisions in an employee handbook created an implied contract for employment.  On balance, for most employers, the benefits of a properly drafted employee handbook far outweigh the risks.

I am a lawyer and an entrepreneur in Denver.  This is the eighth in a series of posts about legal issues affecting startups.