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Employee Handbooks and Essential Workplace Policies for Small Business

Presented by Elizabeth Milito

http://www.nfib.com/employeehandbook



The NFIB Small Business Legal Center is the voice for small

business in the courts and the legal resource for small business owners nationwide.

While the information provided in this webinar is intended to be accurate, it should not be considered legal advice. The Legal Center cannot be held responsible for

any errors or omissions.




Today’s Agenda

• Introduction to Employee Handbooks

• Key Sections of a good Employee Handbook

• Conclusions




What is an Employee Handbook?

• Compilation of formal and informal rules

• Tool to explain your business’s procedures and how your business will handle any problems that arise

• Method for ensuring that everyone on the team knows what is expected of them

• A way to concretize and place your business’s culture in writing




A Good Employee Handbook

• Orients new employees to your business

• Informs employees of your expectations

• Answers employees’ frequently asked questions

• Tells everyone the rules of the game before problems develop




A Bad Employee Handbook

• Describes procedures that the employer doesn’t actually follow

• Reflects employer’s dreams for the business, rather than reality of how the business actually operates




Who needs a handbook?

• It depends! • Consider:

• Firm culture • Turnover • Size Remember – All policies, procedures and

practices should be consistent for all employees, whether in writing or not!




Key Items to Consider Including In Your Handbook

• Introduction • At will employment policy • Equal opportunity employment policy • Anti-discrimination and anti-harassment

policy • Company property and privacy policy • Employment classification and overtime • Leave policy • Safety policy • Termination and Discipline Policy • Drug and Alcohol Policy




Do’s and Don’ts

DO: • Describe your business’s history and philosophy • Set the tone for the rest of the handbook DON’T: • Describe your business as a family • Use religious language




Employment At-Will Policy

• Definition: an employer can fire the employee at any time, for any reason or no reason at all, so long as it is not an unlawful reason

• At will employees are also free to quit at any time




Employment At-Will Policy Continued

State directly in your

handbook that:

• Employment is at will

• Employees don’t have employment contracts




Equal Opportunity Employment Policy

• Workplace discrimination is forbidden by law

• You understand and abide by these laws




Anti-Discrimination and Anti-Harassment Policy

• Zero tolerance for harassment

• That includes racial, religious and other types of harassment – not just sexual




A good anti-harassment policy…

• Makes it clear that you won’t tolerate unwelcome sexual or other discriminatory comments or conduct

• Spells out specific procedures for handling complaints

• Is followed to the letter




A bad anti-harassment policy…

• Isn’t followed to the letter

• Is too general or too specific

• Doesn’t alert employees as to what is prohibited and what is allowed




Company Policy and Procedures

• Dress Code • Payday • Company Property • Privacy • Personnel Files




Company Policies and Procedures: Dress Code

• There is nothing inherently illegal about having a dress code

• But watch out for: • Dress codes that have

discriminatory effects

• Charging employees for cost of uniforms




Company Policies and Procedures: Payday

• Consult state and local law for: • Wage payment

requirements

• Time frame for paying wages

• Information that must be included on paycheck stubs




Company Policies and Procedures: Company Property

Choices:

• Business use only

• Business use with limited personal use

• Best policy depends on your business’s individual needs




Company Policies and Procedures: Privacy

• Make sure you’re clear about what the company expects

• Privacy laws are relatively new and vary a lot from state to state

• Consult with an attorney if you’re unclear about what your state requires




Company Policies and Procedures: Personnel Files

• Keep confidential • File should accurately reflect each

employee’s personal information • Check state and local law to see if you’re

required to grant employees access to their personnel files




Employment Classification and Overtime Rules

• Almost all businesses in the U.S. are subject to the Fair Labor Standards Act

• Must pay all non-exempt employees overtime pay – 1.5 times regular hourly rate

• For more information, consult Department of Labor Web site – http://www.dol.gov/dol/topic/wages/overtimepay.htm -- and/or NFIB’s Guide to Wage and Hour Law


http://www.dol.gov/dol/topic/wages/overtimepay.htm

http://www.dol.gov/dol/topic/wages/overtimepay.htm



Leave Policy

• Family and Medical Leave Act policy: Required under federal law if your business has more than 50 employees: some states also require smaller businesses to grant leave

• Consider requiring employees to exhaust accrued paid leave at same time they’re on FMLA leave

• For more information, visit

http://www.dol.gov/esa/whd

/fmla/index.htm




Leave Policy

Other leave policies to include: • Sick • Vacation • Jury duty • Voting • Military leave • Holidays • Leave of absence




Safety

• Include: • Name of accident contact person • Location of safety posters • Section on accident reporting (if

you have company vehicles) • Describe industry-specific guidelines,

such as OSHA standards and regulations




Discipline and Termination Policies

• These policies can be binding!

Don’t:

• Over explain the policy • Include steps you’re not going

to take every time

Do: • Consult with an employment

attorney about this section (if you include one)




Drug and Alcohol Policy

• State commitment to providing a drug-free workplace

• Describe your drug testing policy (if you choose to test for drugs)

• If you choose to, describe your policy on helping drug abusers here




Other Policies to Include

• Attendance Policy

• Work Performance

• Benefits




Acknowledgment of Receipt

• Remind employee what at will employment relationship means, and that nothing in the handbook changes that relationship

• Include two copies: one for you, one for the employee

• Have employee sign and date both!




Revising Your Employee Handbook

• Review (and if necessary revise) your employee handbook once a year

• Distribute new handbook at that time to all employees

• Date handbooks and any revised policies

• Number policies by chapter to make revision easier




Five Essential Policies

1. A disclaimer – handbook is NOT a contract 2. At-Will Employment 3. No Discrimination/No Harassment Policy 4. Company Property/Internet and Privacy 5. Code of Conduct – attendance, dress code,

drug and alcohol, etc.




NFIB Has a Model Employee Handbook

• NFIB Model Employee Handbook is available FREE to NFIB members.

• (866) 678-NFIB




Five Mistakes to Avoid

1. Failing to review and update

2. Adopting a form handbook

3. Including policies that aren’t followed

4. Being too specific

5. Not having a lawyer review




Help is Available!

• NFIB Employment Law Hotline provides NFIB members FREE legal advice on employment law.

• (866) 678-NFIB

(have your NFIB Member Number handy)

Contact us at:

[email protected]


mailto:[email protected]



Additional NFIB.com Resources

Should Those "Unwritten Rules" Be Documented Policy? http://www.nfib.com/business-resources/business-resources-item?cmsid=49903

Do You Know How to Legally Protect Your Business? http://www.nfib.com/business-resources/business-resources-item?cmsid=35881

Dress Codes Do's and Don'ts http://www.nfib.com/business-resources/business-resources-item?cmsid=45954


http://www.nfib.com/business-resources/business-resources-item?cmsid=49903























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