Employment Law Updates

AN EMPLOYEE POLICY HANDBOOK – WHO NEEDS IT?

You run a small operation – fewer than 50 employees. The business has been run the same way for years. You have low turnover, and your employees appear to work well together. Why would you need a policy manual? Wouldn’t written policies only serve to make the workplace more rigid and complicated?

Granted, an employee handbook may give the appearance of an employment contract even when it contains a disclaimer explaining that employment is at-will (meaning that employment can be terminated by either party at any time for any nondiscriminatory reason.)  And having policies stated in writing does give your business something to live up to. However, consider the following:

An employment contract may already exist. That’s right, juries in some wrongful termination lawsuits have decided in favor of employees who contend that their employers made oral promises to the employees that constituted an employment contract. If your policies are in writing, you have some leverage against claims that your company made oral promises that are contrary to your written policies. Furthermore, communicating policies orally inevitably leads to inconsistent application, which can translate to charges of discrimination.

Your employees deserve to know what to expect. From a practical point of view, a written policy manual provides your employees with a clear and reliable source for workplace rules. For example, a policy manual answers questions such as “What time does the boss expect me at work?” “When do I get paid?” “What should I wear?” “What holidays are recognized?” “What conduct is likely to get me fired?” “Do I have any recourse when a decision seems unfair?” A manual also clarifies the employer’s expectations, so that when the employee’s conduct falls short of those expectations, the consequences should come as no surprise to the employee. In other words, understanding those expectations gives the employee a better opportunity to succeed in the workplace. Clear policies that are applied consistently also contribute to employee morale and, in turn, increase productivity.

A policy manual benefits the employer as well. For example, a handbook establishes and defines the kind of work environment the employer wishes to build, the prevailing management style, and the spirit of the enterprise. When creating a policy manual, the employer is required to think about what the manual conveys about the employer’s business.

A policy manual also provides an employer with a setting in which to make important statements concerning at-will employment, the authority of the company to change the terms of employment at any time, and the nonbinding nature of published policies. Disclaimers located prominently in the policy manual can also prevent misunderstandings about the nature of the employment relationship that may have been communicated in less formal ways.

A manual can showcase policies of nondiscrimination and anti-harassment. Not only does publication of such policies help prevent discrimination by putting employees on notice, it can also constitute a defense to some discrimination claims and help reduce damages in instances where discrimination occurred.

Finally, a manual helps protect the enterprise by clearly articulating the company’s expectations regarding confidential information about clients, operations, finances and trade secrets; the use of drugs and alcohol; and electronic communications.

Why consult an attorney about your policy manual? You may be convinced that your business would benefit from a policy manual, but you believe you can develop one on your own. After all, you know your business better than anyone else does. However, there are several dangers in writing your own policy manual or adopting someone else’s.

First, whatever is written may be construed as a contract made with the employee. While you want to define your enterprise and the work environment you wish to create, your interests would not be served by unwittingly creating a contract you cannot uphold. An employment law specialist can identify statements that bind your business in ways you do not intend by helping you choose language carefully and inserting the appropriate disclaimers. Additionally, your legal specialist has the experience necessary to analyze the contents of the manual for policies that could lead to sticky real-life situations. A comprehensive legal review will include a search for pesky buzz words that have one meaning in everyday usage and another after an employee has filed a lawsuit. Finally, your attorney can make sure your manual complies with the state and federal laws applicable to your business.

An expensive proposition? The cost may be less than you think, and will undoubtedly pay off in employee relations.

HELICOPTER PARENTS LAND AT HR

Parents who have hovered over their children into their college years are showing up at recruitment fairs and job interviews, and employers are feeling the pressure:  HR managers are reporting that parents are calling companies to ask recruiters to hire their 20-something children; and candidates are stalling on job offers specifically to buy time to consult with their parents, who then call the employer to renegotiate offer packages.  Later, parents will call to protest negative comments on their offspring’s evaluations, or inject themselves into harassment investigations.  In most situations, calls from parents should be handled by reminding the parent that the company has an employment relationship with their “child” and that information surrounding that relationship is confidential.

WHAT A PHOTO IS WORTH . . .

Employers are not legally obligated to keep photographs of their employees on file, yet doing so may help protect against workplace violence.  For example, a local employer recently had to deal with a very serious workplace violence issue involving an employee who had pulled a handgun on another employee.  The employer maintained a copy of the assailant’s driver’s license on file, and was therefore able to immediately provide a photograph of the employee to the police, rather than offering a verbal description.  The photograph was also available to security officers who were subsequently hired to monitor the company property.  If you currently require identification badges or other security measures, consider preserving electronic or hard copies of your employees’ photographs in a readily accessible (but protected) location.  In a time-sensitive situation, it may prevent the need for a thousand words.