| Why
You Need An Employment Handbook & How To Draft One That
Works
By Mark R. Waterfill
As your workplace grows, most businesses
find that the rules of the workplace need to be consistent
and fair. As recruiting employees becomes more competitive
it is becoming clear that sophisticated employees expect a
company to have an employment handbook. Unfortunately, most
employers eventually find themselves involved in some employee
dispute, whether it is a wage, discrimination or unemployment
claim. In any of these situations, some judge or EEO investigator
or tribunal will ask "What is your company policy on
that?" You know that you better have one. The question
then becomes how to draft the document. This article will
provide insights on how to accomplish the task based upon
my experience in drafting or reviewing two or three handbooks
a month for several years.
1. Survey employees as to what they
would like to see in the handbook. Make this a joint effort.
Ask if there are important rules which are particular to this
company which should be included.
2. Review several models and see what
you like. There many handbook forms. Some allow for easy editing,
some use an outline format or explanations of the purpose
of each policy. Review several before deciding which format
you like.
3. As you begin drafting, remember
the handbook should be timeless. Don't write "If you
need to request a leave, call Donna" because of course
Donna won't be there forever. Don't include a promise of a
wonderful workplace from the President/CEO because that person
won't be there forever, and more importantly, because you
do not want the company President deposed every time there
any type of employment lawsuit.
4. Don't be too specific in areas which
may change from year to year such as insurance. Simply state
that company benefits will be provided in separate information
which will be provided and that eligibility for those benefits
depend upon rules set out by the insurance companies.
5. Make sure that your EEO policy is
quite prominent, at the beginning of the handbook and that
the harassment policy sets out all of the necessary elements.
Those include defining harassment, prohibiting it, setting
out a complaint procedure with at least two people to complain
to, a promise of non-retaliation and a limited promise of
confidentiality. There are many good policies to use as a
model and the US Supreme Court cases of Farragher and Ellereth
make such policies essentially mandatory.
6. Reenforce your company's employment
at will policy with bold type and large letters. Don't contradict
that policy by using Probationary Periods or stepped discipline.
Instead, use an Introductory Period and inform employees that
they may be fired for any reason or no reason, with or without
notice.
7. Set out a clearly defined vacation
and time off policy. Do not allow employees to roll over unused
vacation but instead require them to "use it or lose
it". Decide whether the employees' anniversary date or
a calendar year should be used. Make it clear whether unused
but earned vacation is paid at termination; typically a pro
rata method is used.
8. If your company has 50 or more employees
within a 75 mile radius you are subject to the Family and
Medical Leave Act (FMLA) and need to have an appropriate FMLA
policy. If the FMLA does not apply to your company you should
have a proper unpaid time off policy which applies equally
to pregnant employees. Both policies should set out specific
rules for requesting and receiving unpaid leave.
9. There are many other rules which
may or may not be important depending on the state(s) where
your company is located. It is vitally important that you
have an attorney who specializes in employment law to review
the handbook before it is presented to the employees.
10. Hold group meetings with
your employees and fully explain the new handbook. Your employees
will appreciate having standardized rules to govern the workplace
and you will enjoy knowing that there are simple answers to
employee questions - just look at the book.
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