Often, the first document a new employee reads is the company handbook. A handbook serves many purposes, among them introducing the employer’s culture, communicating important policies, and setting employee expectations. If approached thoughtfully, a handbook is also a key tool for minimizing exposure to litigation.
However, a poorly drafted handbook may invite litigation or, at the very least, create problems that otherwise might not have existed.
Here’s a general overview of how to draft effective handbooks that minimize your risks, courtesy of James M. Sconzo, Michael G. Petrie, and Jonathan C. Sterling of Jorden Burt LLP.
Initial Considerations
There is no generic handbook that works for all employers. Handbooks vary greatly depending on industry, state, size of the company, and several other considerations.
Fortunately, the most important thing is not that you cover every conceivable scenario in the workplace, but that your policies are sound, employees understand them, and your practices are in line with the rules you’ve drafted.
To make sure your policies accomplish your intended goals, enlist a diverse committee to develop your handbook. Consider using managers and supervisors from different departments, who have different perspectives, as well as representatives from HR.
If you’ve already got a handbook, remember to have a committee review and revise it periodically to make sure that your policies are still meeting your goals. Finally, strongly consider having an attorney review your policies to ensure that they are compliant with ever-changing employment laws.
As a general rule, your policies should give your company leeway whenever possible. You can accomplish that by using permissive language for employer obligations.
For example, you should state, “The employer may terminate an employee for theft.” On the other hand, feel free to use absolute language for employee responsibilities so there’s little room for discretion on that end. For example, you should state, “Employees must report suspected harassment immediately.”
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Core Policies
Discrimination. While many policies are important, your equal employment opportunity (EEO) policy probably should be front and center. Discrimination is a common source of litigation, and if you receive a complaint, the agency or court will examine your EEO policy at the outset. State your commitment to nondiscrimination in all protected areas for both employees and applicants.
Similarly, your harassment policy is essential for defending against legal claims. In some instances, you can defend a claim successfully by having an effective policy in place that the complaining employee failed to follow.
Don’t forget to prohibit harassment based on all protected categories, not just sex. In addition, provide multiple avenues for reporting harassment and include an antiretaliation provision.
Noncompetition. Depending on your industry, you may want to include noncompetition and/or confidentiality policies. Resist the urge to stifle all possible competition, however.
While you have the right to protect your legitimate business interests, California tends to look harshly upon noncompete restrictions, so consider running this part of your handbook (if not the whole thing) by a lawyer.
To protect your confidential information, first define “confidential information” so employees understand what it is and then explain its appropriate use. Finally, require the return of all company property upon termination.
Leave. Make sure that your leave of absence policies comply with the Family and Medical Leave Act and the Americans with Disabilities Act as well as their California counterparts.
Additional Policies
Wage and hour issues. Wage and hour lawsuits are on the upswing. You can help protect yourself against costly litigation by clearly explaining your overtime policies. For instance, if you’re dealing with nonexempt employees, you should consider requiring prior written approval for all overtime and expressly prohibiting work from home.
Information systems. Remind your employees that all technology belongs to the company, and set guidelines for personal use. We don’t recommend a total ban on conducting personal business at work, but it certainly shouldn’t interfere with the employee’s job.
Clearly explain that you may monitor employees’ computer and phone use. Inevitably, you will have employees who are active on social networks. If they choose to post information on sites like Facebook or Twitter, for example, they should never attribute personal statements to the company or disparage the employer.
Miscellaneous. There are dozens of additional areas that you can cover if you so choose. Examples include zero tolerance for workplace violence, attendance, drug testing, and personal appearance policies. Consider the company’s objectives when deciding how detailed you want your handbook to be.
Bottom Line
The handbook is an important guide for your employees. Once you’ve decided on your policies, make sure you enforce them as fairly and uniformly as possible. Remind your employees at the outset that your handbook doesn’t create a contract, and nothing in it should be construed as changing any employee’s at-will status.
Once your handbook is ready for distribution, make sure each employee acknowledges receiving and understanding it. Finally, plan on periodic training to go over the policies in your handbook and provide ample opportunities for employees to ask questions.
Tomorrow, tips for getting the word out about your handbook. We’ll also introduce you to a valuable handbook-creation resource, specifically for California employers.
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20 Must-Have Employee Handbook Policies today!
What about small businesses with only 1-2 employees? I tend to think they should still have a handbook, but I’ve heard arguments against. For example, some seem to worry that having a handbook would box them in and eliminate flexibility.
What about small businesses with only 1-2 employees? I tend to think they should still have a handbook, but I’ve heard arguments against. For example, some seem to worry that having a handbook would box them in and eliminate flexibility.