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WHEN DOES YOUR COMPANY NEED AN EMPLOYEE HANDBOOK?
ANSWER: SOONER THAN YOU THINK!
By: Kerry E. Dwyer
kerry.dwyer@wilaw.com
414.276.5000
Many employers do not believe they need an employee handbook until they reach some critical mass of employees. Nothing is further from the truth. Under Wisconsin law, as soon as you have one employee, you are subject to a myriad of laws relating to that one employee. Accordingly, a company with even one employee is wise to have an employee handbook.
Above all, your employee handbook should be a tool in which the company communicates its basic expectations and sets forth its general policies. Employee handbooks should not merely be copied from another entity or downloaded off the Internet; rather, they should reflect the reality of your workplace and be “living documents.” As your business changes and evolves, so should your employee handbook. A handbook that describes benefits or policies that a company doesn’t actually follow is dangerous as it can be offered as “proof” against a company that doesn’t follow its terms. For this reason, companies that do have employee handbooks are advised to review them annually to ensure that they remain accurate and useful.
The following is a list of basic provisions that every employee handbook should contain.
1. Welcome.
Before getting to the nitty gritty of the handbook, it is advisable to have a welcome page from the president or owner of the company. This page can simply set out the mission of the company, its history and set the tone of the company.
2. Contract Disclaimer Language.
Every handbook should have language that specifically states it is not creating a contract between the employees and the company. This language should also indicate that the company may, in its sole discretion, modify, change, delete or amend its policies at any time without notice. Companies always want “wiggle room” in their policies so that they can, in their sole discretion, address various employment situations without being bound to specific actions.
3. Employment At-Will.
This section should clearly state that all employment with the company is at-will, meaning that either the company or the employee may terminate the employment relationship at any time with or without cause or notice. If some employees have contracts for specified terms, this section should state that such contracts must be in writing and signed by a specified company official.
4. Equal Employment Opportunities Policy.
It is very important that the company set forth its intent to comply with all laws concerning equal employment opportunities. This section should contain the list of all federal, state and local protected categories and an affirmative statement that the company will not discriminate on the basis of these protected categories. Too often, stock handbooks off of the Internet or from outside companies contain only a list of federally protected categories, and do not contain the categories protected under state law (such as sexual orientation and marital status). This policy should also inform employees as to how and to whom they should report discrimination.
5. Harassment Policy.
This policy should encompass all forms of harassment, not just sexual harassment. Too often, older handbooks refer only to sexual harassment despite the fact that harassment on the basis of other protected categories (such as race or national origin) is equally important to protect against. This policy must also contain a clear reporting mechanism that provides an individual with a minimum of two parties to whom a report of harassment can be made. It should also contain a section stating that the company will not retaliate for claims of harassment or discrimination and reiterate the reporting mechanism for any retaliation.
6. Drugs and Alcohol Policy.
This policy should prohibit the use of drugs or alcohol in the workplace or while on working time and also prohibit being under the influence while at work. The policy may also specifically state that the company may conduct drug and alcohol tests.
7. Employee Records.
This section reminds employees of their obligation to inform the company of changes in pertinent personnel information such as name, address and contact information.
8. Benefits.
Benefits provided by the company should be listed clearly and accurately. The company should state its policies with respect to any of the following benefits: health and dental insurance; life insurance; 401(k) / pension plans; flexible spending plans; tuition reimbursement; holiday pay; vacation pay; sick pay; funeral leave; personal leave; jury duty; voting leave; and military leave. If a company does not have such benefits, they should not be mentioned in the handbook.
9. FMLA Policies.
If a company has 50 or more employees, it is regulated by both the federal and state family and medical leave acts. Accordingly, it must have a policy that outlines its obligations under these acts. Again, Wisconsin employers must be sure that their policies do not merely reflect federal law, but also describe the benefits under state law. In addition, under Wisconsin law, if a company has 25 or more employees, it must state its policy concerning leaves of absence even though the company is not bound by the state (or federal) FMLA.
10. Workplace Conduct.
A company should set out its general rules concerning attendance and punctuality, guidelines for appropriate conduct, progressive discipline, solicitation and distribution, safety and smoking. These policies should be flexible to ensure that the company is not bound by a system of progressive discipline and may impose any discipline, including termination, as it deems appropriate.
11. Open Door Policy.
An open door policy or other grievance policy is advisable to remind employees of the means by which they may make an employment-related complaint. Also, employees have a sense of fairness if they are able to talk about adverse employment decisions or other workplace issues with a higher level of management.
12. Technology Policy.
Companies need technology policies that specify the rules and regulations concerning the use of their business systems. These policies should include explicit disclaimers that an employee has no expectation of privacy in the company’s phone, computer, e-mail and Internet systems.
13. Acknowledgement of Receipt of Employee Handbook.
This form is extremely useful in proving that an employee received an employee handbook. It is also a good place to reiterate the contract disclaimer and employment at-will language.
While this list is not all inclusive, and there are many other policies that a company may need to add to its handbook, it is a good start for any employer regardless of the size of its workforce. Remember, the handbook should be a useful tool to communicate with employees, not a meaningless document that isn’t read or followed.
If this article has inspired you to review and revise your employee handbook, or to draft an initial handbook, please feel free to call Kerry Dwyer at (414) 276-5000 for assistance.
*All information appearing in this article is for informational purposes only and is not legal advice. This article does not create an attorney-client relationship with any reader. Do not act upon any information contained in this article without seeking professional legal counsel.
