Nov 29, 2009
Do you Need an Employee Handbook?
Lacking an up-to-date, legally-compliant Employee Handbook dramatically increases employer liability, puts business assets at significant risk, and increases the likelihood of a business disruption.
Consider these common Employee Handbook mistakes:
1) Creating Contractual Rights to Employment. When an employee agrees to provide services to an employer for pay – employment is “at-will.” Under the “at-will” doctrine, an employee or employer may terminate the employment relationship at any time, for any lawful reason (or for no reason) without notice. Courts, in most states, however, have found that under certain circumstances, poorly worded employee handbook policies can inadvertently create an implied contract that alters the “at-will” employment relationship.
For instance, companies remissly give employees contractual rights to employment when an Employee Handbook policy states that employment may be terminated for “just cause” or when a policy guarantees certain disciplinary procedures prior to termination.
2) Inaccurately Classifying Employees. Under the Fair Labor Standards Act (FLSA) and other federal rules, employers are not required to pay exempt employees overtime pay while nonexempt employees are required by law to receive overtime compensation.
Incorrectly assigned exempt and nonexempt job classifications can open the door to employee claims and be used against companies as evidence of a violation of the FLSA. Failure to properly pay overtime can result in back pay awards of up to two years, and up to three years if deemed a willful violation.
Businesses should regularly evaluate exempt and non-exempt jobs to ensure proper classification and compliance with Federal rules and existing Company policy.
3) Lacking Procedures to Report & Address Harassment. Employers generally recognize the need to have a policy statement protecting against illegal discrimination and harassment. However, very often fail to include procedures in their Employee Handbook’s for reporting discrimination and harassment. At a minimum these procedures should include:
• Requiring employees who witness or experience discrimination or harassment to report claims to responsible management authorities for investigation,
• Giving employees the option to report discrimination and harassment to a management authority outsider of their chain of command, and
• Stating that all reports of harassment will be investigated and disclosures made only when necessary to investigate an incident or as required by law.
Employee Handbooks are living documents that communicate Federal and State regulations and help to keep employers out of court. According to a survey conducted by a leading insurance company – one in four private small businesses has been sued by a current or former employee.
Employment discrimination cases are filling court dockets nationwide, and appear more more often than any other type of litigation except criminal cases. Civil and criminal lawsuits aren’t cheap. Studies by the U.S. Department of Labor show that businesses often spend as much as $125,000 defending themselves against disgruntled employees. Excepting legal fees, if a plaintiff wins at trial, the average judgment exceeds $500,000 in fines, sanctions, penalties and awards.
YES, you need a custom-built, legally-compliant Employee Handbook!
Thoughtfully prepared, legally-compliant Employee Handbooks are a cornerstone of most successful businesses, and not born from off-the-shelf templates. They are custom-built to address Federal and State regulatory compliance issues, and include policies about Absences/Attendance and Workers’ Compensation, and everything in-between.
Does your business have an Employee Handbook that is – 1) written in easy-to-understand language, 2) describes your corporate culture, 3) provides a history of the Company, 4) states the Company’s goals, ethical standards, compliance with Federal and State laws, etc., 5) reduces turnover, 6) increases productivity, 7) reduces misunderstandings with and between employees, 
reduces lawsuits, 9) sets Company expectations, 10) legally-compliant, 11) reviewed and up-dated annually, 12) etc?
Small and mid-sized business owners are urged to communicate with employees, protect their business operations and assets, and mitigate risks. A wealth of information is available on the Internet, and by referral from payroll services providers, CPAs, attorneys, human resources compliance experts, etc. about where and how to secure a custom-built, legally-compliant Employee Handbook.
YES, you most certainly do need a custom-built, legally-compliant Employee Handbook!
If not NOW – then, WHEN?
Help answer the question about handbook
What is a good font to use for making a handbook?
Hello, I'm working on a handbook for work. The handbook is a guide to resources for the disabled and other information pertaining to disabled individuals. What would be an appropriate font to use and any other info that mightbe relevant would be very much appreciated. Thanks in advance!
About Author
Jeff Tokarz is Managing Partner, HumanResourcesCafe.com (a human resources compliance and performance solutions firm in Rochester, NY and Atlanta, GA)
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Would help to know where you live to be able to answer correctly, also what is the issue with this handbook?
If you are questioning some of the companies rules or policies that are in it, or if there is something in their that singles our a specific gender, then you would need to go to you local goverments labor authority. In the United States it would be your local Labor Board… they are the goverment agency that handles employment discrimintation or un ethical employment practices. It does not cost anything to speak with them. If you issue is a legal matter with the handbook, chances are you can find an attorney that will give a free consoltation, try calling around to any attorney that advertises the handle labor issues and seeif they could give a free consultation. usually it is done over the phone. Hope this helps.
about.com has a list of these topics.
just love what you are doing. wish my town would follow transition initiatives (barrie, ontario, canada)
Thank you Rob and all Transition Initiators!
From a Transition Darebin participant,
now inspired to save local food and transport skills.
between 250 and $500 PER COPY…. I wouldnt settle for a days pay… you have to do research and spend a lot more time than just writing.
Think about how much the manual would save the company, and ask them how much it is worth to THEM to have such a manual…..
Be sure you "license" the manual to them so they dont distribute it without you getting paid!!…..
This movement is spreading like water that has fallen on top of a mountain. May we become a resilient society and gentle beings on our planet.
zzzz zzzz zzzzz
I don't think that it is mandatory in any state. However, if you find that there is a problem with them quoting regulations, then whomever is having the difficulties should contact the labor board in MO and find out exactly how to go about getting them or what needs to be done. They would be the agency that would be able to give you the best info for this situation.
or, instead of wind harvesting, perhaps use less energy?
Great video, Rob. But it bugs me a whole lot that the audio is delayed…
Thanks for spearheading this transformative initiative Rob. Its timely and “rather brilliant” in uk tongue. I may be working with mr. alastair lough here in Portland, Maine USA for the local chapter. Cheers (in US tongue) -Daren
Hell,just go to the Store and ask to see one..I don't see why you can't look at it!! It can be public record right?? I don't know…just go ask…
I’m allergic to nuts, this is a terrible scheme!!
Just kidding… this is wonderful (and I’m a pessimist) well done (doing).
Nice work. keep it up. mean time come for social media marketing for esteembpo**com
An Employee Handbook is a collection of all the information needed for a new hire, including a policy and procedures manual.
An Employee Handbook could contain all of the following and more:
P&P manual
Training manual
Emergency Procedures manual
Uniform Agreement
I-9 form
W-4 form
other new hire paperwork
Brandon O'Dell
O'Dell Consulting
bodell1@cox.net
http://www.bodellconsulting.com
Free initial consultations
First of all, ignore the idiot who told you to call the BBB. They are not in the business of adjudicating employer-employee differences and would most likely report you to the company – getting you fired.
A company handbook is not necessarily a binding document. HOWEVER, if this was given to you as an explanation of the terms of conditions of your employment at the time you were hired, it IS. You have a reasonable expectation that the promises presented in the handbook will be fulfilled, and you have a legal cause of action.
In order to protect yourself, remember that raising this is likely to get you fired if you become pushy. If you can get another job soon, or have enough savings to live on while you take 2 – 5 years to press a lawsuit, you probably will end up with a wad of money if you get aggressive and then are fired. This is virtually a slam-dunk lawsuit.
On the other hand, the real point is that you just want to be paid on the terms of the company promises – AND, everyone else subject to the same rules deserves that treatment, too. Lawsuits really are not so much fun and not the reason people take jobs.
I recommend that you consult an attorney, and perhaps pay him $100-200 (maybe a tad more but not much) to write an ANONYMOUS letter on your behalf to the SENIOR managers of the company. The attorney's name will be on the letter, but not YOURS. The letter will be a legal record that you took the trouble to simply ASK for the pay as promised, and NOT include any threatening language. The mere fact you have an attorney sending this letter should imply consequences if the company is stupid enough to refuse the promised level of pay.
Chances are good that all of you will get what you were promised.
And if you do not, chances are you will win a lawsuit for it pretty soon. With YEARS of back pay for holidays!
Draft all information that you deem important, starting from safety to legal to ethical points…..then go through everything and you will discover more that you might want to include….check out the language and make sure it is clear and concise and employees can understand it….finally, put in a clause that all points can and will be edited or changed as your company sees fit….after that, you will know instinctively what to change, add or delete as your company grows and thrives….(your employees inadvertantly give you hints…) also it might not hurt to put that employees who work as a team often come up with info for your handbook…good luck…ours was wrtitten on a wing and a prayer and is so good now….