The company handbook: It sounds so routine, like something that’s been around forever and just needs a quick and easy update every year or so, a task that a seasoned human resources professional can handle with ease. But considering the rapidly changing legal landscape and the ever-growing number of ways for employers to find themselves in litigation, the complexity of handbook writing becomes clear.
The job, though often difficult, is worth the effort, according to Danielle C. Garcia, an attorney in the San Diego, California, office of the Fisher Phillips law firm. She recently conducted the Business and Legal Resources webinar Employee Handbooks: Key Updates, Drafting Tips, and Enforcement Advice, providing drafting tips and enforcement alerts related to handbooks.
“Statistics do show that companies that invest proper time and resources into their handbooks see decreased litigation or at least litigation that is eliminated much earlier on,” Garcia says. The job begins with a look at the fundamentals.
Mistakes to avoid
When developing or revising a handbook, Garcia warns employers to avoid the common mistakes she often sees. Some of those mistakes include:
- Copying another employer’s policies instead of tailoring the book to the specific business.
- Wording policies so they give employees “rights” that are unintended.
- Trying to solve every problem an employee might have. Employers that try to address every possible problem end up with a handbook that’s “3,000 pages long” and still doesn’t cover everything, Garcia says.
- Neglecting to acknowledge state laws. Employers with employees in different states can include addenda for the different states.
- Failing to follow the handbook, what Garcia calls the “biggest, scariest” problem. “We have these rules for a reason,” she says, and they need to be followed fairly and in a nondiscriminatory way “so that your policies stand tall in front of a judge.”
- Failing to train on the handbook. For example, supervisors need training on harassment policies. If people aren’t trained on the employer’s handbook, “it’s just kind of an empty booklet,” Garcia says.
- Failing to update the handbook often enough. Handbooks need a review at least annually but possibly more often as laws change.
Fixing problems
To avoid the problems that result from handbook mistakes, Garcia suggests asking certain questions:
- When was the current handbook last revised? A sure sign a handbook needs revision is one with policies related to technology and the internet that only address MySpace instead of recognizing the plethora of social media and smartphone apps.
- Who drafted the current handbook? Was it written by an HR person years ago and updated in what Garcia calls a “hotdog” fashion, in which the HR department just throws things on as they come up?
- Who will draft the next handbook? Garcia recommends involving some kind of legal counsel or HR company that specializes in writing handbooks.
- Whose input will be necessary to complete the next handbook? For example, appropriate executives will need to provide input on various policies such as what kind of leave is offered.
- What other information needs to be collected for the next handbook?
- When will the next handbook be issued? Garcia says to keep in mind pending laws that may surface at any time.
Handbook musts
Handbooks can address an array of topics depending on the employer, but Garcia identifies certain “musts,” either because they’re required of employers that have handbooks or because they can protect the employer. Those handbook provisions include:
- The equal employment opportunity policy.
- Antiharassment/discrimination/retaliation policies.
- Leave policies (if applicable), including leave for jury duty, witness duty, voting leave, bone marrow/organ donation, sick leave, Family and Medical Leave Act, state leave laws.
- An at-will employment statement.
- An explanation of the employer’s arbitration policy if one exists.
- A form for employees to acknowledge receipt of the handbook.
- An explanation that employees with Americans with Disabilities Act-recognized disabilities are entitled to reasonable accommodations.
- Wage and hour information related to pay and timekeeping, overtime, and meal and rest periods.