Handbooks are an excellent communicative tool designed to outline a company’s policies and procedures. A well-written handbook can provide your employees with a clear description of job duties, vacation and leave policies, and outlines employee rights.
When was the last time you reviewed your company’s handbook? Do you update it every year? While you may not consider it an annual event, handbooks should be reviewed and updated each year. Federal, state, and local laws change frequently, and if your handbook is out of date, certain practices may be found to be illegal and may be subject to a lawsuit.
A well-written handbook should cover the following:
Non-Disclosure Agreements (NDAs) and Conflict of Interest Statements
Anti-Discrimination Policies
Compensation
Work Schedules
Standards of Conduct
Safety and Security
Computers and Technology
Employee Benefits
Leave Policies
Non-Disclosure Agreements (NDAs) and Conflict of Interest Statements
Employees are not legally required to sign an NDA, however, you may wish to implement a statement to protect company trademarks or industry secrets. You handbook should outline the necessary information regarding your specific policy so that all employees are aware of the agreement prior, during, and post employment with your company.
Anti-Discrimination Policies
Your handbook must include a section on anti-harassment and anti-discrimination policies that comply with the equal employment opportunity laws. This includes the American Disabilities Act. For more information on the ADA, visit their website.
Compensation
Take time to provide a comprehensive outline of all matters of employee wage. Make sure your employees are aware of deductions for state and federal taxes. In addition include information on deductions regarding the company’s benefits plan. Finally, provide answers to the following questions:
- What are the legal obligations for overtime pay?
- When are pay schedules?
- Are there employee reviews?
- Do employees receive shift breaks? If so, how often?
- How does an employee keep a record of hours worked?
Work Schedules
Does your company have a set schedule for employees? Do you provide flexible work-from-home days? Include all information regarding attendance in this section.
Standards of Conduct
If your business mandates that your employees dress or act in a specific way, include this information in your handbook. It’s important to document all employee expectations from the start so there is no confusion after an employee begins work.
Safety and Security
As an employer, you’ll want to create a safe environment for your employees to work. Relay this information in your handbook. Include procedures for reporting an accident, weather emergencies, and any other health-related issues. These reports should be directed to management as soon as they occur.
For more information regarding the legal guidelines for employers, visit OSHA (Occupational Safety and Health Administration) online.
Computers and Technology
If technology is utilized by your workforce, you, as the employer, will want to create guidelines on appropriate use. Outline information regarding ways in which you will track activity and information.
Employee Benefits
In this section, you’ll want to relay all information regarding mandatory and optional benefits.
Mandatory benefits include:
- Social Security Taxes
- Unemployment Insurance
- Workers Compensation
- Disability Insurance
- Leave Benefits
- Family and Medical Leave Act (FMAL)
Optional benefits include:
- Group Health Plans
- Affordable Health Care Act
- COBRA Benefits
- Retirement Plans and Pensions
- Employee Incentive Programs
Leave Policies
Include all information regarding leave policies. These include vacation, sick, and personal days, jury duty, family medical leave, and military leave. Be sure that your policies are documented and align with federal and local laws.
As a consultant, I recommend that employers review their handbooks annually, even semi-annually. For example, the state of California continues to adopt new policies regarding minimum wage and overtime pay.
If you are a small business owner, don’t let this event be a painstaking exercise or avoid the practice altogether. As an expert in the field, I’m happy to review existing handbooks and guide employers through the annual process. All encompassing, there are topics within handbooks that are always subject to change legally. Don’t let your handbook, and your company, suffer due to a lack of preparedness.
