Does My Oklahoma Small Business Need a Handbook? (And How It Protects You From Lawsuits)

You started a business, not an HR department. The last thing you want is to create policies, procedures, and paperwork. But if you have employees—even just a few—an employee handbook isn't bureaucratic busywork. It's lawsuit protection.

Here's what Oklahoma small business owners need to know about handbooks, what they should include, and how they protect you when an employee relationship goes wrong.

Why Handbooks Matter Legally

Employee handbooks serve several legal purposes that become obvious only when you're facing a claim:

Establishing Expectations

When an employee is terminated for violating a policy, your first question in litigation will be: "Did they know about the policy?" A signed acknowledgment that they received and read the handbook answers that question.

Preserving At-Will Employment

Oklahoma is an at-will employment state—meaning you can generally terminate employees for any reason (or no reason) that isn't illegal. But careless handbook language can accidentally create contracts that limit your at-will rights. Proper handbook language preserves your flexibility.

Providing Legal Defenses

For certain claims, having proper policies—and following them—is an affirmative defense. The most significant example:

Harassment claims: Under the Faragher-Ellerth defense, you may avoid liability for supervisor harassment if you had an anti-harassment policy, a complaint procedure, and the employee unreasonably failed to use it.

No handbook = no defense.

Demonstrating Consistency

When a terminated employee claims discrimination, they often argue they were treated differently than others. Consistent, documented policies help you demonstrate that everyone was treated the same.

What Oklahoma Small Businesses Should Include

Not every business needs a 100-page policy manual. But certain provisions matter regardless of size:

At-Will Employment Statement

Essential. This statement—typically on page one and in the acknowledgment—confirms that employment is at-will and can be terminated by either party at any time, with or without cause or notice.

Without this, Oklahoma courts may interpret your policies as creating implied contracts.

Anti-Harassment and Discrimination Policy

Essential. This policy should:

• Define harassment and discrimination
• Apply to all protected classes (race, sex, religion, national origin, age, disability, etc.)
• Provide a clear complaint procedure
• Promise non-retaliation for complaints
• State that violations result in discipline up to termination

This policy forms the basis of your Faragher-Ellerth defense.

Complaint Procedure

Essential. Employees need to know how to report problems. The procedure should:

• Identify multiple people to report to (not just the direct supervisor)
• Promise prompt investigation
• Guarantee confidentiality to the extent possible
• Prohibit retaliation

FMLA Policy (If Applicable)

If you have 50+ employees within 75 miles, you're covered by the Family and Medical Leave Act. Your handbook must include FMLA information and procedures.

Even if you're not currently covered, including a placeholder policy avoids scrambling when you grow.

Leave Policies

Whatever leave you offer—vacation, sick time, PTO—put it in writing:

• How much leave is available?
• How is it earned and accrued?
• What happens to unused leave at termination?
• What notice is required?

Oklahoma doesn't require vacation payout at termination unless you've promised it. Your handbook determines your obligation.

Attendance and Punctuality

Clear expectations about attendance, call-in procedures, and consequences for violations. This supports terminations for attendance problems.

Discipline Policy

Describe your approach to discipline—but avoid rigid progressive discipline requirements that limit your flexibility. Many employers use language like:

"The company may use progressive discipline but reserves the right to skip steps or proceed directly to termination depending on the circumstances."

Social Media and Technology Use

Modern handbooks should address:

• Company email and computer use policies
• Social media guidelines
• Expectations of privacy (or lack thereof) in company systems

Drug and Alcohol Policy

Especially important for safety-sensitive positions. Consider whether you'll conduct testing, when, and what the consequences are.

Acknowledgment Form

The employee signs confirming:

• They received the handbook
• They'll read and follow it
• They understand employment is at-will
• The handbook isn't a contract

Keep the signed acknowledgments forever.

Common Handbook Mistakes

Creating Accidental Contracts

Language like "employees will only be terminated for cause" or detailed progressive discipline requirements can create implied contracts, eliminating at-will flexibility. Have an attorney review your language.

Promising Things You Won't Do

Every promise in your handbook is a potential lawsuit if you don't keep it. Only include policies you'll actually follow.

Being Too Specific

Handbooks that try to address every situation become outdated quickly and may not cover new circumstances. Use general language that gives you discretion.

Not Updating

Employment law changes. Minimum wage increases. New leave laws pass. Your handbook from 2015 may be dangerously outdated.

Review your handbook annually—or when laws change.

Inconsistent Enforcement

A handbook only helps if you follow it. Selective enforcement undermines the policies and creates discrimination claims.

The Minimum Viable Handbook

If you're a very small business and need to start somewhere, prioritize:

1. At-will employment statement (with acknowledgment)
2. Anti-harassment policy with complaint procedure
3. Equal employment opportunity statement
4. Basic conduct expectations
5. Leave policies (whatever you're offering)

This core document provides essential legal protection without overwhelming complexity.

When to Get Legal Help

Consider having an attorney review your handbook when:

• You're creating it for the first time
• You've grown past 15, 20, or 50 employees (triggering new laws)
• Significant time has passed since the last review
• You've faced an employment claim
• Employment laws have changed

The cost of a handbook review is trivial compared to the cost of an employment lawsuit.

We Help Oklahoma Businesses With Employment Policies

A good handbook is an investment in avoiding litigation. We help Oklahoma businesses create and review employee handbooks that protect their interests while complying with state and federal law.

If you need a handbook or haven't updated yours recently, contact us to discuss your needs.