Employee Handbooks
Tips for writing, maintaining and enforcing your rules

By Laura J. Brown

Employers sometimes take an ad hoc approach when dealing with job performance issues. For example, a company might decide it needs an absenteeism policy after hiring a young staff member who calls in sick every sunny Friday.

But reactionary policies can be flawed and poorly reasoned—that’s why it’s a good idea to create an employee handbook. A handbook is an attempt to codify your practices so you can apply them fairly to all employees. Employee handbooks can also reduce conflict in your company by spelling out everyone’s rights and responsibilities.

Yes, You Do Need One!

You might think your company is too small to warrant an employee handbook, or that it’s exempt from employment-related lawsuits, but think again. Lawsuits alleging wrongful employment practices are the fastest-growing area of civil litigation today, and small businesses are no exception. Any organization that employs two or more people should have its policies and procedures written down and reviewed by an attorney.

Here are some common reasons some business owners think they don’t need an employment handbook:

“Our employees are like one big family. Even if they were terminated, they wouldn’t sue us.” Discrimination lawsuits have spread like wildfire in the past 20 years, and small businesses aren’t immune. During the hiring process, most employers don’t anticipate problems with an employee. Rather, issues tend to surface after the employment relationship begins. For example, what starts as a personality conflict or constructive criticism can escalate quickly into a situation involving a disgruntled employee. To protect your company, follow the policies outlined in your employee handbook, conduct annual performance reviews, document all disciplinary actions, maintain accurate records, and avoid emotional confrontations.

“We only have a few employees, so the laws don’t apply to us.” It’s true that a few federal statutes require a minimum number of employees before they apply; however, that’s not true of all federal laws. In addition, state statutes and case law generally make no size distinctions. Be aware of both federal and state laws that affect your organization, regardless of the number of employees.

Where to Start

Building an employee handbook from scratch can seem daunting, but resources are available to help you. Dozens of books and computer programs offer templates that allow you to create a customized handbook with little effort. 

Assemble information. If you’re starting from scratch, gather all of your existing policies on pay, hours, vacation, benefits and employee reviews. You might be surprised at how much has already been done. If your rules are unwritten, commit them to paper. If you already have an employment handbook, decide which sections should be revised or omitted. Look for holes in your existing handbook that should be patched by your new one.

Seek a local attorney’s advice: This step is crucial, since laws differ by state and county. Present your policies to an attorney who possesses a sound knowledge of employment law. Have the attorney make sure your handbook complies with local, state and federal laws.

Distribute it. If the handbook goes on a shelf to gather dust, your work has been for nothing. Your employees need to read and understand it, and you must enforce its policies consistently. You might wish to communicate your policies at various times— when people begin employment, when you significantly change policies and when you’ve experienced significant turnover in staff. Some policies— such as those addressing sexual harassment and equal opportunity— should be reviewed with employees every year.

Here are some general policies that an employee handbook should include:

Benefits. Explain the rules about vacation pay, sick pay, unpaid leave, health insurance and other benefits you offer.

Communication and electronic media. Establish the extent to which employees may use the telephone and electronic tools such as the Internet and e-mail for personal use.

Discrimination. State that your organization will not discriminate against job candidates on the basis of race, gender, age or disability.

Hours. Outline normal working hours for full-time employees, rules that apply to part-time employees, and how employees may qualify for overtime pay.

Pay. Tell employees how often they will be paid, and the reasons for various payroll deductions.

Personal conduct. Address the type of conduct you expect of all employees. Include any specific prohibitions, such as those against smoking or drinking alcohol.

Sexual harassment. Emphasize that harassment in any form won’t be tolerated and could result in discipline, including firing. Provide employees with at least two avenues for reporting perceived harassment. Explain that employees won’t face retaliation for reporting it.

Workplace safety. Establish procedures that require visitors to check in and be escorted through the building. Include a statement prohibiting weapons on your property and inform employees that violence or threatened violence will not be tolerated.

Update Regularly

If you already have an employee handbook, how old it is? When was it last revised? Have your practices changed since then?

Employment law is constantly evolving. Legislators make new laws every year, and courts frequently modify the way existing laws are interpreted. For example, the Fair Labor Standards Act was amended recently to redefine which workers qualify for time-and-half pay when they work more than 40 hours.

As a result, it’s important to review your handbook every two to three years and revise it to comply with the law, if necessary. An employee handbook that isn’t followed anymore might actually cause more damage than it prevents. Courts could consider the out-of-date book an employment contract and hold your company liable if its policies and procedures haven’t been followed.

Reap the Rewards

Having a set of guidelines can also make your job easier. Employees know where to find answers to simple questions about benefits and workplace policies, and you can look to the book for guidance when more complex questions arise. Your attorney has reviewed the handbook, so you can have confidence that your policies are in line with local, state and federal laws. In the end, you’ll spend less time making policies and more time putting your company first.

Share this article: Email, Slashdot, Digg, Del.icio.us, Yahoo!MyWeb, Windows Live Favorites, Furl
Add this article feed to: RSS, My Yahoo, Newsgator, Bloglines

Read Comments [0]