As an employment attorney in San Diego (http://wblawgroup.com/employment-attorney-san-diego.html), I suggest that every business owner write an employee handbook. This handbook will come in handy is any employees attempt to sue your company. The employee handbook can be used as evidence against the employee, because it proves the awareness of certain business policies.
Please note that you should not attempt to write an employee handbook on your own. It is crucial that you consult a professional. A professional can help clarify any legal jargon that may be confusing to you.
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