Did you know, there’s no state or federal law requiring businesses to provide workers with a handbook or manual containing employment policies? Accordingly, some employers decide to forgo having one. Many believe that not having one provides greater protection because employees cannot point to provisions in the handbook as a basis for legal claims.
Such beliefs are misguided. In reality, an employer with a compliant handbook can often use the policies and provisions as defenses to any claims brought.
Consistently applied written policies can:
Help with unemployment claims brought by ineligible individuals by providing a basis for the termination.
Assist with determinations on workers’ compensation claims by setting forth workplace safety rules that were ignored.
Provide affirmative defenses for claims related to harassment, discrimination or the Family and Medical Leave Act (FMLA).
Affirm the organization’s commitment to following all applicable laws.
Fulfill notice requirements of some jurisdictions regarding certain employment policies.
Consider your handbook a tool to:
Welcome new employees,
Serve as a roadmap for procedures related to pay and leave,
Give managers rules to apply equally to every employee,
Establish notification and reporting procedures if there is harassment or discrimination,
Promote the employer’s brand as a great place to work.
Besides lessening legal risks, an employee handbook can lower workers’ job-related stress, turnover and daily complaints by providing guidance and setting expectations regarding pay, leave and other benefits.
Rather than viewing an employee handbook as the “rule book” that only benefits employers, shift focus to how beneficial one is to employees’ engagement, retention and morale. All of these benefits further decrease the chances of management dealing with disgruntled and litigious employees.
What if you do not have an Employee Handbook?
We live in a time where the internet can deliver free resources to solve many problems. But resist the temptation to type “FREE employee handbook template” into a search engine and spend an afternoon or two creating your handbook. Also, do not copy from another company handbook as it will not be customized to your company.
While you might save money by finding a “fill in the blank” template, doing so increases the risks you are attempting to lessen. You may not know if the template has the latest local, state and federal employment laws. These types of DIY handbooks may not have policies and provisions applicable to: 1) where your business is located, 2) where your employees reside and work, and 3) your specific industry. And as static templates, they could already be out of compliance.
In addition, missing or poorly worded policies can lead to misunderstandings with employees or potentially an expensive lawsuit.
If you do not have an employee handbook currently, consider that it may be time. You do not want to leave this important task up to someone with very little Human Resources experience. HR Consultants are truly experts in this area. They typically create several custom employee handbooks each month and can also educate you along the way as to which policies are required, why you may want one of the optional policies, etc.
What if you already have an Employe Handbook?
If you already have a handbook, remember that it should be updated each year to reflect new changes in the law. Revising your handbook also provides an opportunity to update or add important poicies like work from home or you may need to make changes to benefit policies. Whatever the changes may be, the handbook is a very important tool for communication.
Failing to keep pace with employment law changes or forsaking a handbook altogether can spell disaster for your business, particularly from costly legal claims. In 2020, The U.S. Equal Employment Opportunity Commission (EEOC) pursued nearly 67,500 discrimination charges and secured more than $439 million for claimants. The top 10 wage and hour settlements garnered $294.60 million, according to the 17th Annual Workplace Class Action Litigation Report.
These numbers reflect just a fraction of annual cases and costs from employment-related claims. Employers must embrace every opportunity to lessen such risks, and well-written, legally compliant employee handbooks are a critical first step.
If you do not have the expertise to do this or maybe you don’t have the time, Platinum HR Consulting Group can update an existing handbook. If you want to go it alone, please see below for sections we recommend you pay special attention to.
Workplace violence
Unfortunately, it has become all too common that we hear about a shooting in the workplace.
Make sure you update or add safety policies to your handbook. Start with the basics like a strict no-fault violence and threats of violence disciplinary policy. Your policy should make it clear that any violation will result in immediate termination. You may want to address each type of workplace violence as outlined by OSHA in their guidance and at the National Institute for Occupational Safety and Health (NIOSH). These include:
Criminal intent. The perpetrator has no legitimate business relationship to the workplace and usually enters the affected workplace to commit a robbery or other criminal act. Your handbook policy should assure employees that you have plans for possible criminal acts and are committed to regularly updating prevention measures.
Customer or client. The perpetrator is either the recipient or the object of a service provided by the affected workplace or the victim. The assailant may be a current or former client, patient, customer, passenger, criminal suspect, inmate, or prisoner. Your handbook policy should acknowledge potential violence and offer training for vulnerable employees.
Co-worker or supervisor. The perpetrator has some employment-related involvement with the affected workplace. Usually, this involves an assault by a current or former employee, supervisor, or manager. Your handbook policy should reassure workers that you take every complaint seriously, have processes in place for security during and after contentious discharges or disciplinary meetings, and encourage workers to speak with HR about alarming behavior.
Personal relationship. The perpetrator is someone who does not work there but has or is known to have had a personal relationship with an employee. Your handbook policy should encourage workers to use your employee assistance program to address relationship and mental health challenges and provide information on how to access treatment.
DEI
When updating your handbook, look for ways to show your commitment to the ideals exemplified in the diversity, equity, and inclusion (DEI) movement. That includes updating your non-discrimination policy to clearly state your commitment to DEI. Do the same with your discrimination and harassment policies, including your reporting policies. Even if you operate in one of the few states that have passed rules limiting how you can train employees on DEI topics, you can demonstrate your commitment through handbook rules and policies.
Other examples of highlighting your commitment includes policies covering the following:
CROWN Act and grooming updates
One of the biggest changes to grooming policies in the last few years is the loosening of rules on hairstyles. More legislatures are likely to add anti-hair discrimination laws in 2023. Plus, Congress may pass similar legislation sometime in 2023. These laws generally make it illegal for employers (and others) to discriminate against individuals because they maintain a natural or cultural hairstyle. Some versions of the legislation specify protected hairstyles, including braids, dreadlocks, and afros.
California goes further, redefining the commonly used grooming policy phrase “professional” to include natural hair because professionalism was, and still is, closely linked to European features and mannerisms, which entails that those who do not naturally fall into Eurocentric norms must alter their appearances.
Even if you are not in a CROWN Act jurisdiction, consider adopting your own version. Allowing natural hairstyles is one way to highlight your efforts to become more inclusive.
Harassment and discrimination training
The following states require employee and managers to take sexual harassment training: California, Conneticut, Delaware, Illinois, Maine, New York and Washington. Most recently, some states are adding recognizing human trafficking to their harassment training. Even if it’s not required in your state, we recommend the company be proactice and add handbook policies that require employees, including managers, to undergo appropriate training. You should also have an anti-harassment policy in your employee handbook.
Sexual harassment prevention training helps to:
Ensure employees understand what sexual harassment is, that it is prohibited in the workplace, and how it will be handled if it does occur.
Provide a positive workplace where employees feel supported.
Minimize liability and the negative consequences of sexual harassment.
Protect the employer’s right to assert an affirmative defense against hostile work environment claims involving supervisors if certain criteria are met.
Pay transparency
The push for employers to publish pay information or at least allow applicants and workers to freely discuss compensation and benefits has picked up steam. In fact, pay transparency laws that prohibit using past pay as the starting point and openly stating what a position pays are seen as the way to stop past pay discrimination from being perpetuated.
A growing number of states and cities have passed laws that require posting pay ranges so applicants know upfront what pay to expect. For example, new laws take effect in 2023 or took effect in late 2022 in California, Rhode Island, New York state, and New York City. Twenty-nine states and territories plus the District of Columbia also either limit when an applicant must disclose past salary or prohibit setting starting salary based on past salary.
Even if your state does not require pay transparency, eliminating handbook rules that discourage or forbid discussing compensation helps demonstrate your commitment to equal pay for equal work. Plus, dropping those rules makes it less likely your organization will face unfair labor practice charges.
Remote work policies
Unless you do not have any employees working remotely, you need telework rules in your handbook. These rules should be clear and specific and include a list of positions eligible for remote work. Set minimum requirements for being approved for telework.
These can include:
Minimum length of service.
When telework success will be reviewed and renewed or withdrawn.
Expected schedule and permitted working hours.
Being located in an approved state or city for telework.
Meeting minimum requirements for a workspace including broadband access and other equipment.
Provisions for assuring privacy and data security.
Details about expense reimbursement.
Rules for remote meetings, including dress and grooming rules, appropriate backgrounds, and removal of potentially offensive or harassing objects and materials.
If you provide opportunities for telework on a select basis, make sure your policy also states that remote work may be an option as a reasonable accommodation under the ADA.
COVID rules
Be sure to review any outdated COVID-19 pandemic rules you may have added to your handbook over the last three years. Remove any that no longer apply. Check with your state for any COVID-19 health and safety measures still in effect. You can also update your pandemic handbook provisions, labeling them as emergency contingency rules. That way, you can reactivate the rules should cases surge in your area.
Closing
In summary, an employee handbook is an important cornerstone for any business, regardless of size, state or industry. There are many more benefits to having one as compared to not having one. Consider how it might benefit your growing business.
At Platinum HR Consulting Group, we are always here to answer questions if you are curious what it might be like to work with us. Please feel free to contact us through the contact form on our website.
