Employee Handbook Do’s and Don’ts

General Counsel/Co-Founder Email: tbell@hrpivot.com Phone: 602-363-7435 A Bit About Me Co-Founder of HRPivot - Full Service HR Provider for small and mid-sized businesses Lawyer and MBA - Bear Down! Advise clients on employment law issues, compliance concerns, sticky employee relations challenges General Counsel/Co-Founder Taylor Bell

Items to Include At-Will Statement EEO Policy (if more than 15 employees) Harassment Pay and Hours (including Overtime) Internet and Electronic Communications

Items to Include Marijuana and Other Drugs Paid Sick Time Personnel File Access Social Media Dress Code and Grooming

Statement of Employment You can destroy the at-will employment relationship through promises made in an employee handbook. This is a handbook, not a contract. These policies guide you and your managers through many situations. The policies can be changed at any time - you will be informed if they do. The Company is committed to complying with all applicable state and/or federal laws and intends to make all employment decisions accordingly. You are an “employee-at-will.”

EEO - Equal Employment Opportunity This policy should comply with national, state, and local anti-discrimination laws. It should include protections based on race, religion, creed, color, sex, age, national origin, disability, military service, and other protected categories that may include marital status, sexual orientation, gender identity or transgender status. It doesn’t have to be complicated: Equal Employment Opportunity We do not discriminate against employees or applicants for employment for any reason.

Policy Against Harassment Anti-harassment: Your harassment policy should be comprehensive, effective, and realistic. It should define harassment, set forth avenues for reporting it up through the executive level or board of directors if the boss is the alleged harasser, and offer a degree of confidentiality and support. It also needs to include an anti-retaliation statement. It’s important that this policy reach beyond sexual harassment to include people in every protected category. Anti-harassment: Your harassment policy should be comprehensive, effective, and realistic. It should define harassment, set forth avenues for reporting it up through the executive level or board of directors if the boss is the alleged harasser, and offer a degree of confidentiality and support. It also needs to include an anti-retaliation statement. It’s important that this policy reach beyond sexual harassment to include people in every protected category.

Policy Against Harassment We are committed to providing a work environment free of unlawful harassment. The Company will not stand for this type of behavior and violation of this policy may likely lead to your termination. Specifics Company policy prohibits sexual harassment, and harassment based on pregnancy, childbirth or related medical conditions, gender, race, religious creed, color, national origin or ancestry, citizenship, physical or mental disability, protected medical conditions, marital status, age, sexual orientation, sexual identity or any other basis protected by federal, state or local law, ordinance or regulation. If you believe that you have been unlawfully harassed, you must submit a verbal or written complaint to the HR Department as soon as possible after the incident. The Company cannot fix that which it does not know about.

Pay and Hours (Overtime) Here, your pay practices, including when the workweek begins and ends, payroll periods, and deductions from pay should be included. Your policy should include your overtime rules when non-exempt employees are entitled to work overtime and any pre-approval procedures that are required. The purpose of this is to eliminate confusion around what is likely the most important aspect of the job to your employees.

Electronic Communication A well-drafted policy will remind employees that your company’s computers and networks exist for business purposes and prohibit using work computers for specific personal activities. It should clearly state that there is no expectation of privacy on work computers and that security is not guaranteed. EXAMPLE: The Company reserves the right to inspect computers or related equipment, as well as employee email content or files and folders used for work purposes at any time.

Drugs and Alcohol Seems trickier than it actually is! Define what is considered substance abuse and what types of substances are covered under the policy. Outline the process the company will take for determining reasonable suspicion for testing, the procedures for allowing the employee to remain at work or be sent home, and the penalties for infractions of the policy. Affirm that employees who disclose medical issues or request accommodations relating to a disability will be protected from discrimination and retaliation.

Drugs and Alcohol Example We have a no-alcohol, no-drugs policy at the workplace. Violation of this policy may lead to discipline, up to and including termination. No employee is permitted to consume, possess, sell, transfer, or purchase alcohol, illegal drugs, narcotics or controlled substances (including but not limited to medical marijuana), while on the job, in company vehicles, or on company property (either immediately before or during your work hours). Testing The Company reserves the right to require employees to take a drug or alcohol screening test when the Company has a reasonable suspicion to believe the employee is impaired at work.

Paid Sick Time This law requires employers to notify employees of the policy, so include in the handbook to cover that base. State how many hours they accrue and at what rate (based on how many employees you have). State when they can begin using accrued hours after being hired (up to 90 days) Be sure to inform if hours roll over or if they are paid out at the end of the year (and what happens to them at termination). Include notification expectations.

Personnel File Access Employee personnel files are the property of the company, though most employees do not realize this. Include this policy to avoid future issues if an employee requests to see the contents of their file. State that their file is company property and that they can request to view their file under the supervision of management, if deemed appropriate.

Social Media An employer cannot control what employees write or post online on their own devices and with their own accounts. However, you can inform employees that what they write and exchange shapes what others think about the Company and them as employees. This means that certain posts can affect their ability to remain employed at the company. i.e. Harassing posts, lude behavior that can be viewed by customers, bad-mouthing the company or company employees. Make it clear that they do not speak for the Company online, so do not appear to do so unless given express permission.

Dress Code and Grooming This is designed to again avoid confusion and make difficult conversations less difficult. Be clear and direct with what is expected. Do not include a laundry list of acceptable and unacceptable items EXAMPLE: Dress Code and Personal Hygiene Appropriate attire is required. In the office, we request business casual clothing. In the warehouse, please ensure your safety by wearing jeans or work pants, steel toed boots, and required PEP at all times. Any employee who does not meet the standards of this policy will be required to take corrective action, which may include leaving the premises to change into compliant attire.

Items NOT to Include Agreements Contractual Language Overly Restrictive Discipline Policy No Flexibility (using definitive words like “must” rather than “may”) Not Making it User Friendly

Any Questions?