If it isn’t written down, it didn’t happen –part 1 (Handbooks)

We used to live in a society where workers needed protection from unscrupulous bosses.  This gave rise to the unions and to Federal, State, and local governments enacting laws and acts to protect the rights of the employee.  Now the pendulum has swung far the other way and employers must guard themselves against the employee who feels that they have been wronged, whether there is just cause or not.  This “wrong” can take the place of wrongful termination, harassment, discrimination, or unequal pay or advancement. 

To protect yourself and your company I want you to remember one little phrase – If it isn’t written down, it didn’t happen.  Let’s start at the beginning. 

Do you have an employee handbook?  If you answered yes, good for you.  If you answered no, go sit in the corner and think about what you have done.  An employee handbook is more than just a collection of rules about your company.  It is written documentation of your rules (no ambiguity) and assuming you have employees sign a form that states that they received and read the handbook, it is documentation that your employee knows and agrees to follow the rules.  This is your first line in defense in the event of an employee lawsuit.  Common reasons for a lawsuit include sexual harassment and feelings that you were passed over for a promotion (usually due to discrimination).   Most scenarios that could lead to a lawsuit can and should be spelled out in your handbook so there is no question regarding what the employee is required to do, who they are supposed to report problems to, and what the company will do to try and resolve the issue.  I have lots of people say that they don’t have a handbook because they don’t want to be tied down to a set of rules and be inflexible.  If this is your attitude, you are giving up a lot of legal protection for some ambiguous flexibility.  Handbooks are written to allow to inform employees and reduce misunderstandings revolving around common concerns yet with the flexibility to change as times and needs change.  The only catch is that what is in the handbook must be applied equally to all employees to retain the legal protection that a handbook provides.  Some of the components that a typical handbook should contain include:

·         A company statement

·         A disclaimer (that this handbook is not a recognition of employment NOR the sole repository of employment information for the company)

·         A statement of company rules (safety, disciplinary action, computer policy, etc)

·         Benefits (insurance, holidays, PTO/vacation/sick time, etc)

·         Wage & hour (schedules, salary vs. hourly, promotions/pay increase policies, etc)

·         Sexual harassment & discrimination policies & how to report violations

·         Government notices (FLSA, FMLA, Right to work, COBRA, etc)

Once you have created your employee handbook, have it looked over by an attorney who specializes in employment (NOT your cousin Vinny who is a divorce attorney) for items that are either illegal or would restrict your rights as an employer.  Be sure and have your employee sign that they have received and read the handbook.  It is also advisable to have certain excerpts from the book as additional documents to sign that they have been read and understood.

Focus1 provides outsourced services in the areas of Human Resources (HR), Benefits Administration, Payroll, Workers’ Compensation (WC) and Safety.   We focus your employee needs so you can focus on your business.