California’s strict and complex employment laws make it more important than ever to have an effective employment handbook. Policies that are clearly written and effectively spell out the rights and responsibilities of both you and your employees can reduce your risk of liability and protect your business. But if you don’t get your employment handbook content and processes just right, you could actually leave your organization more vulnerable than if you didn’t have one at all.
A well-drafted employment handbook allows you to:
- Spend less time answering routine questions (thus increasing your productivity and effectiveness).
- Avoid being the “bad guy.” In other words, when the policy is clearly communicated and in writing, it doesn’t appear arbitrary and individualized.
- Protect your company from claims and lawsuits.
Top 10 Employment Handbook Mistakes
Paris told us the top 10 employment handbook mistakes to avoid. These are:
- Overly-detailed disciplinary procedures. Too detailed a procedure could create the expectation of specific rights during disciplinary situations and create inadvertent liability. Alternatively, too much flexibility or deviation from stated policies without adequate training may lead to claims of discrimination.
- Not outlining meal and rest periods. Employees should be advised that if anyone interferes with their ability to take their required meal and rest periods, they must notify their supervisors immediately.
- Not controlling overtime. Be sure to require prior approval for overtime and explain that failure to receive prior approval may result in discipline, including termination. However, employers must still pay overtime if the employee is “suffered or permitted to work” – even without authorization.
- Stating improper or overly-detailed practices. Be careful to always be in compliance with the law; sometimes going into too much detail can create obligations that are either beyond legal requirements or even contrary to them in specific situations.
- Putting caps on medical leaves, which can lead to discrimination claims for disabled workers who could use extra leave as a reasonable accommodation.
- Having a “use it or lose it” vacation policy. These are not allowed in California because paid vacation accrued is considered the same as wages earned and cannot be forfeited.
- Having overly-broad electronic communication policies. Be careful not to restrict communications completely – doing so could be in violation of the National Labor Relations Act rules on protected concerted activities.
- Having an inadequate harassment prevention policy. By law, California employers are required to take all reasonable steps to prevent harassment from occurring.
- Not requiring acknowledgement of the employee handbook provisions. Make sure that every employee returns a signed acknowledgment of receipt of each version of the handbook. This removes the possibility of an employee claiming they did not know of a policy.
- Not reviewing and revising the handbook regularly. The law changes frequently; handbooks need updated to reflect the current legal situation and stay in compliance.
The above information is excerpted from the CER webinar titled “Employee Handbooks in California: How to Reduce Your Legal Risks and Improve Internal Communication.” To register for a future webinar, visit CER webinars.
Attorney Andrea Paris is based in Orange County and specializes in all areas of human resources law, including employee handbooks, wage and hour, discrimination, and sexual harassment. Ms. Paris provides advice and counsel to California employers on ways to manage risk related to employment issues and she defends employers in claims and lawsuits in the areas of wage and hour and discrimination. (www.andreaparislaw.com)