Neither members nor non-members may reproduce such samples in any other way e. Employee handbooks are make-or-break road maps for organizations, helping to get them where they want to go as fast as possible by setting them on a course away from time-consuming lawsuits. On the other hand, a poorly written employee handbook can create confusion. And it can create liability for an employer where none should exist. For these reasons, the maintenance of an effective employee handbook demands your attention.
A handbook typically has a long shelf life, and mistakes, misstatements and ambiguity can come back to haunt a company when legal problems arise. With these caveats in mind, here are 10 mistakes you should avoid with your employee handbook:. Employee handbooks should directly reflect how your company actually operates, its culture and its expectations. As such, avoid adopting a cookie-cutter handbook straight from a template. Of course, an employer may review a template or the handbooks of similar companies when drafting its own.
Employers often draft new policies as laws change and new situations arise in the workplace. If those new policies are important enough to put in writing, they need to be included in the employee handbook. While you are at it, take out the day probationary period language if your employees are at will. Handbooks also should include a disclaimer that the handbook cannot address every situation that could possibly arise in the workplace in order to give the employer flexibility in addressing unique situations.
No company wants employees to bad-mouth their company on social media for the whole world to see. Employees also have the right to discuss wages and other work issues with fellow employees without reprisal.
Perhaps no policy is more important than an effective anti-harassment policy. Employers should let employees know what harassment is and what they must do about it if it happens to them in the workplace. The employee handbook should describe the procedure employees need to follow to report an incident of harassment, including the specific person to whom an employee should report the harassment, and an alternate person if the person designated under the policy is the alleged harasser.
A policies and procedures manual is a reference tool for managers and supervisors. This tool is much more complete in detail than the employee handbook and should be used for back-up when more information is needed to explain a policy or when a deeper understanding of a process is desired.
As a benefit to management, the manual can contain references to federal and state laws that correlate to each policy. Managers and supervisors then have access to the rationale for the policies, thus providing them with assistance for enforcement. Let our Employee Handbook Builder assist you.
It includes legally binding policies and the most up-to-date state and federal requirements. You may be trying to access this site from a secured browser on the server. Please enable scripts and reload this page. Reuse Permissions. Page Content. If you are currently asking about salary history during interviews, this could be illegal in your state.
Check with your state Department of Labor. As a result, knowing how to track hours is essential. Your handbook should explain how employees clock in for shifts.
Include rules for meals and breaks , PTO, minimum wage, overtime, and fair workweek, for instance. There may be a lot of documents floating around. Protect yourself from outdated or poorly-written policies that were created before current guidelines. State clearly that the handbook supersedes any other rules.
Both of which could contradict official policies or law. At the very minimum, protect yourself by stating that the policies are subject to change. HR systems with electronic signature make this easy. Newly hired employees can read the policies from an internet connected device then sign that they understand and will follow them. See how these HR departments made their employee handbook come alive. Harkening back to Shakespeare.
It is our calling card to be irreverent. To instruct and amuse. And to speak the truth. Talk with your manager. You can talk directly to a VP in another department. Complete with charming pictures of adorable dogs and cats. You can see it here. Certainly, it takes an ongoing effort to keep the employee handbook up-to-date.
This is especially true for small companies without an HR director. In some companies, writing and updating the handbook is a dreaded task. As a result, no one is eager to take ownership and the buck gets passed around. Secondly, printing costs sink tight budgets. This is unfortunate. After all, small businesses need a good handbook as much as larger ones.
Most importantly, know that an outdated handbook can do more harm than good. In addition, it causes confusion. Furthermore, it can be particularly problematic for new hires. Consider this example: Suppose you have a day waiting period for benefits. What if a new employee assumes health benefits start immediately? Because of this, they end their previous coverage before they are eligible. Then they have a major medical expense. You are going to have an angry employee with a mountain of medical bills.
Here is a better scenario: New hires are emailed a link to the employee handbook as soon as they accept the job offer. The email states explicitly that the new hire must read the handbook ASAP.
The handbook clearly explains the waiting period. The new hire signs their acknowledgment. You could also reiterate the waiting period in the email for good measure. If you have workers in many states, you may need a separate compliance section for each state. Talk to your business attorney or state Department of Labor. For example, if you are based in California, you may need a separate section for workers in specific cities.
In addition, New York state expanded qualified leave beyond the federal law. When your employee manual is outdated, it reflects poorly on your company. Employees have to ask their manager or the HR staff every time they have a question. Unfortunately, incorrect information and informal policies can spread through the workforce.
Certainly, keeping your employee handbook up-to-date is not simply a matter of convenience. It is necessary for legal compliance. If an employee brings a case against your company, you may be held to the standards in your handbook. For more information on small business compliance, see HR Compliance Checklist.
As mentioned in section two, many states have legalized cannabis. Laws are changing all the time. For instance, stable scheduling and PTO payout laws are popping up. The best practice is to assign an HR manager to track changes in employment law. Talk to your attorney, Payroll What is payroll? Payroll is the process of compensating employees for time worked. It involves designing a compensation plan, tracking work time, calculating withholdings, issuing paychecks and submitting payroll taxes.
How do you process payroll? This continues through the onboarding process. If your employees belong to a union, you will need copies of the union contracts. Some positions or shifts may require various levels of certifications, education, training, or experience. This will be applicable when you are scheduling employees.
Employee TimekeepingAccurate payroll depends on accurate employee time and attendance tracking. During onboarding, managers should show employees how to clock in and out of their shifts. An automated employee timekeeping system simplifies payroll processing. Payroll ApprovalsAt the end of the payroll period, the employee time tracking information is sent to the payroll administrator. This includes hours worked by the employee. Other pay information must also be sent.
This includes any supplemental income earned. Supplemental income can include overtime hours, bonuses, and commissions. Taxes and WithholdingAfter payroll is approved, you calculate withholdings. You have to withhold federal, state, and local taxes. Make sure you are using the guide for the correct year. Contact your state department of labor for information about calculating and paying state taxes. Contact your local taxing authority for information.
If you hire a payroll provider or service, they will figure this out for you. Deductions and withholdings must be subtracted from gross earnings. This includes state, federal and local taxes. Deduct retirement contributions and healthcare premiums. In addition to providing employees their paycheck, you must include an earnings statement. Some states require employers provide sick leave accrual information.
Local family leave laws may require documentation. In certain industries and locations, you may have to provide overtime documentation. State reports are usually also reported quarterly. Federal anti- Discrimination What is discrimination?
Equal Employment Opportunity laws define workplace discrimination as unfair treatment based on race, color, religion, sex including pregnancy, gender identity, and sexual orientation , national origin, disability, age age 40 or older , or genetic information. Which federal laws address workplace discrimination? While many states laws mirror the federal statutes, some states have additional protections.
There are also state-specific laws that require anti-discrimination training. Some states equal opportunity employment laws apply to smaller businesses as compared with the federal laws. Also, many states have added or expanded pay equity laws. You want employees to know that your organization will not tolerate discrimination or harassment in any way, shape or form. State and federal legislation brought on by the civil rights movement of the s protects employees from discrimination based on factors not directly related to the quality of their work.
These include but are not limited to:. Even good managers can slip and unintentionally discriminate among employees. Are employees complaining about the perfect, five-star rating one employee received on his review when no one else did?
Regardless, this is a huge area for potential liability, and a strong handbook can be a good defense if charges are filed against your company. Make yours aware of your policies and provide supervisory and leadership training on nondiscrimination. You can use your employee handbook to remind them about employee benefits, including general information and vacation time. Keep things simple and high-level, however. There are no absolutes in business, and a change in circumstances, benefits or policies will mean you need to update your employee handbook.
For instance, you might want to outline your benefit and compensation philosophy without naming specific carriers or plan options. You can also outline how often employees will receive performance reviews without mentioning specific pay increases. Be careful about the details you include. Provide the basic terms of employment and what employees can expect if and when they terminate, including:.
Be sure your employees understand everything in your employee handbook, and require that they sign an acknowledgment of that understanding. Make two copies. Your employee handbook is a manual of information that your employees need to function within your organization.
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