The Bridge Connection

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assist you in preparing your handbook at a reasonable cost.  Contact Dr James Bridges at james@thebridgeconnection.com for further information

Managers of organizations often question whether or not they should have an employee handbook.  Many of you attending this seminar may be asking the same question.  By your visiting this site  you are at least interested in finding an answer.  Those of you who have one may be asking how important is this to the effectiveness of your organization and just how much do you really need.

Should all organizations have a written employee handbook?

 There are no legal requirements to have and distribute an employee Handbook.  With that said, have you ever been involved in an Equal Employment Opportunity (EEOC), National Labor Relations Board (NLRB), Office of Federal Contract Compliance (OFCCP) or similar complaint or even a discrimination jury trial? If you have you know the importance of having written rules and procedures distributed to your employees.  If not, talk to someone in an organization who has been through this ordeal and you will quickly find out the answer.  According to Donald J. Spero, Esquire:“The base point  at which an employer should consider publishing a handbook is where the employer has a sufficient number of employees to be covered by such protective legislation as Title VII of the 1964 Civil Rights Act ("Title Vll") or theFederal Age Discrimination in Employment Act ("ADEA"). These statutes apply to employers who have "...15 or more employees for each working day and 20 or more calendar weeks in the current or preceding calendar year."  (http://www.floridamediation.com/articles/spero/1999_Employee_handbook.html)

For these organizations, the answer to whether you need an employee handbook is fairly clear.  Yes, you need an employee handbook, but you should consider the discussion below when making the final decision of what to include and the wording, if you choose to proceed.

 Smaller organizations which do not fall in the category mentioned above should also consider the feasibility of  an employee handbook considering the following discussion. 

What are some benefits and possible detriments of having an employee handbook?  What should I consider in making this decision? 

During this part of the seminar we will discuss the benfits and

detriments and whether you should develop a handbook on your own or

use the internet to buy a template.

There are both benefits and detriments to a handbook, but overall

most employers who consider them decide to have one, either

because they have thoroughly researched the reasoning for them or just

because they think everyone else has them and they should.

 As benefits handbooks may:

• Develop clear standards that help reduce employee disputes     
• Demonstrate a commitment to equal treatment of personnel
• Reduce the chances of unintentional illegal behavior.
• Inform new/old employees of the company’s policies
• Promote consistent management

• Develop clear standards that help reduce employee disputes 

In most organizations employee disputes are inevitable, especially as the size of the

organization grows. People will be people.  Through a variety of reasons and situations, some

of these employees will be dissatisfied with their treatment within the organization.  This

dissatisfaction may be a result of the internal actions/inactions of the organization or may be

cause by external forces such as family unrest and problems.    In any case, the organization

should not disregard this dissatisfaction but deal with the problem(s) and seek a solution. 

Failure to do so will lead to further problems leading often to outside forces such as the legal

system and governmental enforcement agencies such as the EEOC to become involved

Organizational rules/standards are essential, whether written or not, to help settle these

disputes.  Without rules/standards, an organization will soon be in chaos despite what

management does or does not do. 

In most unionized organizations, there is usually a formal progressive disciplinary system to

deal with employees who break the established rules/standards such as absenteeism, abuse of

leave, poor job performance, etc. This disciplinary system is generally negotiated during

contract renewal period.  In non-unionized organizations, this procedure is left to the

management of the organization. In many cases where unionization occurred, management got

what they deserved because they did not handle their employees fairly and equitably.

An example of a rule/standard is an organization’s policy toward the use of personal email and

internet usage during work time. A standard policy should be in place to deal with employees

who do not adhere to this policy.  How do your organization deal with these employees?  What

disciplinary action(s) do you take?  How flexible are you? These standards must be well thought

out in terms of organizational objectives, fairness, and equity. When these standards are

applied differently for each employee, employee disputes and unrest will occur.

As we progress during this seminar, hopefully you will identify areas where you need to

establish cleared standards within your organization.

• Demonstrate a commitment to equal treatment of personnel

In today’s organizations, managers are faced with a myriad of laws, regulations, and

court decisions regarding the equal treatment of employees, especially the protected

groups in terms of race, sex, national origin, etc. especially in those organizations which

come under their jurisdiction. Most of these laws, regulations, and court decisions were

made because employers failed to treat their employees fairly/equitably.  Most managers

are aware of these laws, or at least the should be.  Treating a protected individual

differently is just asking for trouble.

People expect to be treated fairly when they become employed in an organization.  Rules

should be established to ensure that all employees are treated thusly .  In addition to 

these rules, management should foster an atmosphere of fair treatment through their

verbal and non-verbal actions/inactions.  There is a common saying.  Management

should “walk their talk.”  Also, remember the “golden rule: do into those like you would

have them do unto you.” As a suggestion while you are developing this commitment to

equal treatment of employees, one way is to put yourselves in the shoes of the

employee.  How would you feel if you were treated unfairly? From this observation, you

should develop and implement this commitment.

As food for thought, suppose you had a well experienced employee who began to break

a minor work rule. How would you handle this situation?  Would you treat a less

experienced employee differently for breaking the same rule? What flexibility should you

as management have in deciding what to do? These are questions that should have an

answer. 

Also, you need to be cautious not to treat an employee who filed an EEOC, OFCCP,

NLRB, court suit, etc any differently than you would any other employee during the time

of the dispute. Failure to do this may result in charges of retaliation, which complicates

the disputed issue.  Even a change in demeanor or non-verbal behavior can be

construed as retaliation.

From time to time you should evaluate your rules and implementation to ensure

equitable treatment of your employees and that favoritism  or even the perception of

favoritism does not exist.

• Reduce the chances of unintentional illegal behavior.

Most managers do not intend to perform illegal acts.  An employee handbook should provide

the guidelines for preventive measures not only for the managers but for all employees .

Prevention is the best cure.   Appropriate rules and consequences should be put in place and

implemented

Illegal behaviors such as sexual harassment, discrimination of protected groups, fraud,

accounting schemes, etc should have prohibitions and be dealt with severely.  A commitment

by management to condone and forbid such actions is necessary. This commitment should put

a “chill” on these actions.

For example, the Sarbanes-Oxley Act is one piece of legislation that deals with accounting

fraud. You should become very familiar with this Act and include preventive measures and ways

to deal with compliance and violation issues. Methods of “corporate whistle-blowing” should be

encouraged confidentially.

Sexual harassment prevention should be included in the development of the handbook as well. 

Other than a statement that sexual harassment will not be tolerated, measures should include

providing a non-threatening  environment for both males and females. In addition, proceduces

should be developed so as to encourage employees to report instances of sexual harassment

in a comfortable manner.  When dealing with these issues, the one being accused should be

treated fairly as well.

Statements that discrimination based on protected criteria should be included.  Non-threatening

procedures should be included that provide redress and due-process to individuals who believe

they have been discriminated against.  Internal investigations and handling of these grievances

are far better handled within than through external means if process appropriately.

Some of the above prohibitions might be intentional but oftentimes, they are just a level of

misjudgment.  The advice and consent of an attorney is critical in these matters.

If unionized, or there is a possibility of being unionized, there are a myriad of pitfalls.  For

example, there are many pitfalls especially if there is organizing activities.  Most managers are

not aware of some of these illegal activities which can result in dire consequences A wise

manager should seek advice from a competent labor attorney  which can save a lot of

headaches

• Inform new/old employees of the company’s policies

What are the company policies on absenteeism?   What if I get sick?  What about the

health insurance coverage?  If I have a pre-existing condition, will that be covered under

the health insurance?  How about vacation time?  How much vacation do I accrue? 

When may I start taking vacation time?  These are just examples of questions that new

and sometimes older employees  want and need to know.

Many organizations include such basic information in the recruitment process and during

orientation training, but oftentimes there is so much information given that the employee

becomes overwhelmed. The older employee may have forgotten the answers or there have

been changes from the time they started work with the organization. An employee handbook

provides a resource where the employee can go to answer these basic questions or provide a

method whereby the employee may ask specific questions not included.

Without a handbook, policies are often given in the form of a memorandum.  In time

these memoranda get lost or often trashed.  The handbook can serve as a vehicle to relay

company policies in one place.

The manual should be presented in a way as to let the employee know they are welcomed and

should feel comfortable in the organization.

• Promote consistent management

A written employee handbook, if carefully thought out and written can promote

consistent management which is essential in defending the organization’s actions

legally.  One of the major areas where outside sources such as the courts and

governmental agencies  try to determine is consistency.   Consistency is important so as

to determine whether employees are treated fairly and whether policies are being

followed.

Written policies encourage managers to adhere to pre-determined decisions regarding

situations and how they should be handled in line with legal requirements and

organizational objectives.

This all seems great, but what are the detriments?

You may be asking yourself “this seems like something our organization needs to do, but I am

wondering what are the detriments that need to be considered?” The following comments are

possible detriments to having a handbook, most of which can be reduced or eliminated

with proper phrasing of policies, include discovering that the handbook:

May form the basis of an employment contract

Many organization’s managers want a handbook, but also they want to reduce the possibility

of the handbook being used against them at a future date by their employees. In an

“employment-at-will” state care must made throughout the handbook that the organization

reserves the right to terminate the employee at any time and that the handbook is not an

employment contract .

A properly worded disclaimer should be displayed clearly within the document and signed by

the employee. Even though a disclaimer clause may not guarantee that an employee will not

sue for breach of contract or wrongful discharge, the clause may be a deterrent against such

claims, but if claims are brought, the presence of the clause may be a useful defense against

these claims

The disclaimer should be stated in simple, easy to understand language that

the handbook is not intended to create an express or implied contract of employment.  The

clause must state that all employment with the company is "at-will." This means that either the

employee or the employer may terminate employment at any time for any reason, with or

without notice. In addition, the disclaimer should note the handbook is not intended to be a

complete description of the company’s policies or practices and that the company reserves

the right to revise, supplement, suspend or discontinue the policies at any time.

     To avoid limiting the effect of a disclaimer, employers should be careful not to make

statements anywhere in a handbook regarding the "rights" of employees.

Employers should take particular precautions when adding disclaimers to existing handbooks.  

An addition of a disclaimer should be well publicized to best protect the company, and, even

then,employers should be aware that the disclaimer may not be effective as to employees

who were hired under previous editions of the handbook unless redistributed to all employees

and signed that they received.

Managers should have employees sign an acknowledgment that they received a copy of

the handbook and that they understand their obligations are to read, understand and comply

with the provisions. The acknowledgment should reinforce that the handbook is not intended

to create an express or implied contract and that all employment with the company is at-will.

Must be updated regularly, which takes time and other resources:

Developing the handbook is not a “one time” occurrence, but a continous process. 

Management must be willing the spend the necessary staff time and other resources (i.e

printing costs, etc) to  keep the document up-to-date. If you do not plan to keep the handbook

updated and distributed to all new employees, then you would be better off not having one at

all. 

May limit the company’s flexibility to handle situations on a case-by-case basis.

Because of the need to be consistent and fair, the handbook if not properly worded could limit

the flexibility of management to handle situations differently. For example, you have a highly

skilled, long term employee, who through lack of judgment breaks a  major company rule.  Do

you discipline them as you would a relatively new employee especially if  the results might

include termination?

Practical Tips For Developing Your Handbook:

You have now reviewed the benefits and weighed the detriments of your organization

publishing an employee hand book and you decided to develop and distribute one to each of

your employees. What are the steps and what should you include?  Even if you already have an

employee handbook in place but you feel revisions are necessary, the first step would be to

evaluate your current policies in light of what you will learn from today’s seminar.  You should

make notes on what your current policies are and the reasoning for developing the handbook.

From this evaluation, you should note discrepancies and/or areas which need revision or

additional sections.  You may need to do further research to gather further information.  After all

of this has been accomplished, you may need to draft the proposed changes.

After making a preliminary draft, you should solicit input from as many of the stakeholders as

possible. If you are the top level manager, getting their input and approval throughout the

process is essential.  If you do not have this approval from top management, you may end up

with a well designed document, but gathering  dust.  You must include them in the process.

If you are unionized, getting union representatives involved is essential as well.  In addition,

careful review of your contract and adherence to your agreements.

Supervisors and other staff and employees should also be consulted.  Include representatives

of any one that might be affected.

Utilize your attorney for wording and other advice

If at all possible and feasible, gather the representatives together and go over the major issues

and invite input.  Be in control of the group but allow and encourage disagreement to a point. 

Conflict is not always bad.  Oftentimes, conflict creates growth if not allowed to get out of

control.  Be aware of “group think” and discourage if at all possible.

You should strive for a consensus on the issues.  Try to avoid the tendency to vote on the

issues, but seek agreement in other ways.  Address the concerns of the group and make

revisions to your proposed handbook in light of this input if you already have one.

Once you have developed/evaluated your current policies and gathered input, you are ready

to prepare the document.  One initial decision which should be made is whether you should

develop your handbook from “scratch” or use one of the templates or software available online

or in retail stores.  Some of the advantages of using this source is that you have an

established format, less time involved which means less money, and you do not have to re-

invent the wheel when looking at legally defensible wording in many cases.

Some of the disadvantages are that the template/software may not be appropriate for your

organization.  For example, you are a small business and you do not have a large benefit

program or your organization is not large enough to be governed by the discrimination laws. 

Another disadvantage is that the template/software may not be state specific and Arizona

may/maynot have additional legislation and regulations that are not included in the language.

Taking these advantages and disadvantages in mind, you must make a decision whether touse the template/software or not.

Another decision is whether you want to tackle this project yourself or have a third party such as a human resources management consultant help you.

Tips:

11. Include the consequences for failure to comply including  suspension/termination

Sample Employee Handbook outline

 Actual employee handbooks and statements may be found online at:

 http://www.hr-guide.com/data/023.htm

 Common sections in employee handbooks include:

 Introduction:

Welcome Letter from President/CEO

Company History

Company Organizational Chart

Statement of Growth, Profit, and Business Plan

Statement of Commitment to Employees

Continuity of Policies-Right to Change or Discontinue

Acknowledging Receipt of Policy Manual

Equal Opportunity

Recruitment

Employee Selection Process

Sexual Harassment

Medical Evaluations and Interviews

Substance Abuse

Smoking

Employment Classifications

Employee Safety

Anniversary Date and Reinstatement

New Hire, Rehire, Relatives, ad Return to Work After Serious Injury or Illness

Performance Improvement

Termination

Employment Disputes

Internet/Email Usage Policy

Making Purchases over the Internet

Internet Access and Administration

Making Purchases over the Internet

Internet Security

Internet Miscellaneous

Compensation:

Equal Pay

Job Descriptions

Workday, Payday and Pay Advances

Overtime Compensation

Meals and Rest Periods

Flextime

Performance Review and Salary Merit Increases

Safety Administration

Shift Premium

Employee Benefits:

Insurance

Vacation

Holidays

Sick or Personal Leave

Leave of Absence and Military Leave

Medical Leave of Absence

Family Leave, Parental Leave and Pregnant Employees

Bereavement Leave

Jury Duty

Voting

Mileage Reimbursement

Travel Reimbursement

Use of Company Vehicles

Conferences ad Meetings

Professional Memberships

Relocation of Current or New Employees

Temporary Assignment Allowance

Educational Assistance

Required Management Approval

Child Care

 Miscellaneous Policies:

 Announcement of New Positions

Confidentiality of Company Information

Inventions and Patents

Conflict of Interest

Grievance Procedure

Gratuities to Government Employees or Officials

Gratuities to Customer or Supplier Representatives

Political Activities

Employee Privacy

Telephone

Dress Code

Kitchen-Break Room

Employee Recognition

Customers

Visitors

Recreational Activities-Sponsorships

Outside Employment

Employer Security

Emergency Closings

Parking

Mail and Shipping

.