What is an Employee Handbook?
The employee handbook is one of the most important communication tools between you and your employees. It also helps supervisors and managers to manage the workforce. A handbook tells employees what the company expects from them and what they can expect from the company, for example:
- “What are my working hours?”
- “Who do I complain to about my supervisor’s sexual advances?”
- “Am I eligible for Holiday pay?”
- “What is the dress code?”
A well-written employee handbook will answer these questions and more. It is always safer to rely on written procedures rather than common practices of the business or unwritten procedures.
Employee Handbook
Do you have $317,000 to throw away on a workplace lawsuit?
Don’t make the mistake of thinking an employee handbook is not important. It takes only one time to realize that, and then it may be too late. Did you know that according to the latest data from Jury Verdict Research, the median award for all types of discrimination claims increased 46% in the past year, from $216,575 to $317,032? Retaliation verdicts also rose 51% from $146,050 to $221,250. Additionally, the average amount of damages awarded by juries in workplace related issues is $650,000. Unfortunately, employers won only about 42% of employment lawsuits in the past year.
It is crucial for all size companies to reduce the risk of lawsuits by creating a legally compliant employee handbook. The handbook will address all areas of policy and procedure and may limit or even avoid punitive damages. Employee manuals should address everything from clear, precise vacation policies to strict compliance procedures.
Employee handbooks should contain the following:
- Clearly defined mission statement
- Attendance and tardiness
- Work hours
- Time off
- Pay schedule
- EEO statement
- Family Medical Leave Act provisions (for employers with 50+ employees)
- Sexual harassment policy
- FMLA
- Drug and alcohol policy
- Social Media Policy
- Benefits
Avoid Lawsuits
Bold disclaimers should be included in all employee handbooks as well as a clear explanation of “at-will” employment (if applicable). Court decisions have even created rights for employers to limit an employees’ access to the court system and restrict them to the arbitration process. It is always safer to rely on written procedures rather than common practices of the business or unwritten procedures.
Power of the Written Word
The employee handbook can be one of the most important communication tools between you and your employees. It also helps supervisors and managers to manage the workforce. A handbook tells employees what the company expects from them and what they can expect from the company, for example:
- What are my working hours?
- Who do I complain to about my supervisor’s sexual advances?
- Am I eligible for holiday pay?
- What is the dress code?
A well-written employee handbook will answer these questions and more. Make sure your handbooks are updated regularly, as regulations change often. An outdated employee handbook can be as dangerous as not having an employee handbook at all.
Call us today at (877) 356-6175 or e-mail us for assistance with developing or updating your employee handbook. We can help!
