Top Ten Reasons Your Business Needs an Employee Handbook

With respect to the legal relationship created between an employer and employees, leave nothing to chance, and the less said, is never better. Every employer needs an employee handbook for the following reasons:

1) Clearly set forth procedures for inappropriate behavior. Your employees need to know where to go if they are victims of harassment, discrimination, or other workplace malfeasance. Make it clear that they need to report the incident and how to report it.

2) Set forth your rules for concealed carry. However you view your jurisdiction’s gun laws, you have a right to declare your workplace a safe environment and set forth your rules clearly.

3) Policies on working impaired. Addictions to alcohol, prescription drugs, and medical marijuana are all a reality in the workplace. Set forth the rules regarding working impaired, and drug testing pursuant to statutory guidelines.

4) Paid time off. Make sure your handbook is statutorily compliant with the state, county and local regulations on PTO and wages.

5) Your mission statement and values. Every new employee should understand the cultural values of the company. Make it very clear in the employee handbook.

6) Procedures for asking for time off. There are more than emergency illnesses that require employees to ask for time off. Make your policies and procedures clear in the handbook.

7) Compliance with federal and state laws. Laws like “Family Medical Leave Act,” minimum wage, and age discrimination vary from jurisdiction to jurisdiction. However, you must abide by these laws, and the process of preparing the employee handbook will make you aware of your jurisdiction’s limitations and employer rights.

8) Showcase your benefits. Set forth the rules for participating in company 401(k) plans, healthcare plans, and other benefits that make your company a great place to work.

9) Set forth policies regarding conduct and behavior. Leave nothing to chance. Set forth your company policy on cell phone usage, internet shopping, using company equipment for personal use, and other expectations the company has for its employees.

10) Employee handbook is the best defense against employee claims. If an employee files a suit against the employer for discrimination, harassment, or hostile work environment, and the lawsuit is the first time you have ever heard about it, you may have a defense if your handbook articulates how the employee should have reported the problem, allowing you time to remedy the problem. Often times claims get filed against employers without the employer (or owners) even knowing that the harassment or discrimination exists.

For these and many other reasons, it is important to have your handbook updated or if you do not have a handbook, to get one prepared that is statutorily compliant as soon as possible.

For any further discussion, please reach out to Kerry Lavelle at klavelle@lavellelaw.com to schedule an appointment.