EMPLOYEE HANDBOOKS EMPLOYEE HANDBOOKS

Overview of discussion Purpose Commonly included topics Pros and cons Steps to follow Common mistakes Tips on terminology Trends Questions

PURPOSE Employee handbook ≠ policy and procedure manual

PURPOSE Source: SHRM White Paper 11/1/1996 By Dale Scharinger, SPHR, Reviewed November 2002 Clearly communicate relevant information ◦ Summarized employment policies and procedures ◦ Orientation information for new employees ◦ Legal obligations of employer and employee ◦ Responsibilities of employer and employee to each other

COMMONLY INCLUDE TOPICS Employer information Benefits information Policy information At-will disclaimer Purpose of handbook Safety information Procedure information Employee receipt form Employee responsibilities

Pros and cons of Employee Handbooks PROSCONS Fosters good employee relations Communicates well- defined, standard policies Establishes a common understanding between employee and employer Prevents lawsuits or provides legal defense Leads to workforce dissatisfaction Fosters inflexibility Does NOT guarantee that managers uniformly apply policies Risk of implied contract May prompt or support employee lawsuit

STEPS TO FOLLOW: DON’T REINVENT THE WHEEL Before starting the process, educate yourself on employee handbooks!!! Look at examples from other companies Find handbooks the company has previously used Take advantage of templates (Warning: Use them only as a guide)

CREATING AN EMPLOYEE HANDBOOK: STEPS TO FOLLOW Source: Shrm.org, “How to develop an employee handbook,” 6/1/2009 Step 1: Review and revisions to the current company policies Step 2: Create an outline Step 3: Summarize policies and procedures Step 4: Add each summary according to the outline Step 5: Review the entire handbook Step 6: Send to legal counsel for review Step 7: Select a means of publication Step 8: Distribute handbooks Step 9: Update as necessary

TEN COMMON MISTAKES Creating a handbook that is too long and overly detailed

TEN COMMON MISTAKES Using confusing language

TEN COMMON MISTAKES Neglecting to include anti-harassment & discrimination policies

TEN COMMON MISTAKES Failing to consider federal, state, and local laws

TEN COMMON MISTAKES Inadvertently creating contractual rights (implied contract)

TEN COMMON MISTAKES Inaccurately classifying employees as exempt from overtime (violation of FLSA)

TEN COMMON MISTAKES Neglecting to have a lawyer review handbook

TEN COMMON MISTAKES Failing to regularly update handbook

TEN COMMON MISTAKES Failing to obtain every employee’s acknowledgement that they have received, read, and understand the handbook

TEN COMMON MISTAKES Not educating managers on policy

TIPS ON TERMINOLOGY Consider using the term: ◦ Regular instead of permanent ◦ Introductory period instead of probation ◦ Hourly, weekly, or monthly salary rather than annual salary

TIPS ON TERMINOLOGY Don’t imply that an employee will keep a job by following the stated guidelines Use disclaimers – e.g., “we are an at-will employer” Even if you use a disclaimer, the court may still interpret it as an implied contract

TIPS ON TERMINOLOGY Leave “wiggle room” ◦ “We will provide a safe work environment” ◦ “We strive to provide a safe working environment” Keep it flexible - - realize that your handbook will need to be changed in the future

TRENDS IN EMPLOYEE HANDBOOKS Making handbooks more approachable Acknowledgement forms ◦ Giving an employee the chance to review policies Notification of monitoring policies Inclusion of cell phone policies

EMPLOYEE HANDBOOKS EMPLOYEE HANDBOOKS Questions???