Employee handbooks can be a tremendous resource for both employers and their employees. Carefully written employee manuals bring everyone onto the same page – literally – by clearly outlining company policy, laying ground rules, identifying important objectives, and establishing an overall culture. In general, people thrive when they know what to expect and what is expected of them.
Furthermore, for business owners looking to guard against employment-related lawsuits, employee handbooks provide businesses with an opportunity to set forth clear, concise policies regarding sick leave, personal days, discipline, benefits, work-life balance, inappropriate behavior, compensation, and other important issues.
Getting Started: The Basic Disclaimers
In Arizona, and in nearly every other state, your employee manual should include a disclaimer stating that the handbook is not designed as a substitute an employment contract. Instead, an employee manual is designed to complement an employment contract. A business attorney can help you prepare precise language to protect a company’s rights. The manual should also expressly state that you reserve the right to modify the manual. Finally, a manual should include a page, preferably the final page, where the employee will sign, to acknowledge that he or she has read the manual, understands its contents, and agrees to abide by the guidelines it sets forth.
Employee Rights under State and Federal Law
There are a number of state and federal laws that require employers to inform employees of their legal rights. Many businesses include employee handbook provisions that outline the following state and federal employment laws:
Family Medical Leave Act (FMLA)
The FMLA applies to certain types of employers with 50 or more employees. Businesses that fall under the FMLA must give their workers up to 12 weeks of unpaid leave in a 12-month time period to bond with a new child, care for a sick family member, or deal with the worker’s own health condition. Arizona also provides state family medical leave benefits for state employees.
State-Specific Paid Medical Leave
Some states, such as Arizona, mandate that an employer provide a certain amount of paid sick/medical leave time for employees. Both the nature and amount depend on the size of the employer, and whether the employee is either full or part time. A manual would outline these obligations and when this time can be utilized.
Equal Opportunity Employer
Many employers include a section indicating that their policies are fully compliant with Title VII and Equal Employment Opportunity Commission (EEOC) regulations.
Use of Substances
Another issue is the recent legalization of Marijuana and use of other controlled substances in certain states. A manual would outline the company’s policies for the use of these substances and what a business owner can and cannot do in order to both be in compliance with the law but also protect from potential liability if an employee is working while under the influence.
Workers’ Compensation
Arizona law requires employers to post notices regarding workers’ compensation policies and benefits in conspicuous places. Many employers go one step further by placing this information in their employee manuals.
Common Employer Policies
Each business is different, but many employers include the following information types of information in their employee manuals. These items allow both management and the workforce to efficiently handle conflicts, raise questions, and identify solutions that really work.
- Appropriate Behavior
This can be a comprehensive section to disclose everything from the company dress code and smoking standards to personal relationships between employees, foul language, or outlining procedure if an employee theft occurs. These items are all examples of behavior expectations that can be outlined in a manual.
Harassment guidelines are often included in this section of the employee handbook as well. Whether harassment takes the form of workplace bullying or inappropriate sexual advances, both forms of harassment are distracting and unsettling. Harassment also exposes the employer to significant liability. It is especially important for employees to know to whom in the organization they should report if they are experiencing harassing behavior.
- Compensation
Compensation, vacation time, personal days, sick/medical leave time, health insurance, and other benefits should be very clearly defined. Because compensation is something that often varies from employee to employee, consult with an attorney as to whether compensation details should be included within your employee manual or delivered in separate correspondence.
- Computer/Technology Use
In today’s fast-paced business world, many employees use several different forms of technology on an everyday basis. These devices include computers, smartphones, fax machines, tablets, and more. Employers should never assume that employees understand that this equipment is the employer’s property. The employee manual should make it clear that all communication transmitted on company-owned devices is owned and controlled by the employer.
Conclusion
A well-crafted employee manual supports employers and employees as they begin and continue their business relationship. Continuous review and revision of your employee manual coupled with highlighting the company policies contained within will help create a positive and successful corporate culture for your business.
