WORKPLACE LAW -
Common Handbook Mistakes

Question:

I saw your article last week about employee handbooks and why they are a good idea for employers. I have a handbook in place for my business, but I’m not sure how good it is. Are there policies or issues I need to watch out for as far as my handbook is concerned?

Answer:

It is great that you already have an employee handbook for your business. As was mentioned last week, handbooks can be a great tool for communicating with your employees, and they can also prevent problems related to the enforcement of your employment policies. However, while a well-drafted handbook is a significant asset for a business, a poorly drafted one can be a liability. The following are some of the most commonly made mistakes when it comes to preparing employee handbooks:

  1. Get the law right. Keep in mind that certain laws must be included in your handbook, and that they must be accurately stated. You also need to know which laws—both state and federal—actually apply to your business. The number of employees you have and the type of work that you do may affect the laws that apply to you. By the same token, you do not want to include policies and laws that do not actually apply to a business such as yours. Some employers make the mistake of using “form” handbooks from other states that do not comply with California law.
  2. Don’t overdo it. Once you get going putting your policies into writing, it can be tempting to write out every little detail of how you intend to run your business. The reality is that situations will arise that you cannot anticipate. Trying to address every potential issue, and to put it in writing in your handbook, will result in a handbook that is simply overwhelming for your employees. Try to focus on what is essential to your workplace. This way your employees will know what is expected of them, without being overwhelmed by a voluminous handbook.
  3. Make sure your harassment/discrimination policy is complete. California law regarding unlawful harassment and discrimination is very detailed, which means that your policy addressing these topics must contain specific information in order to be in compliance. In addition to including examples of what constitutes unlawful conduct, your policy must include a procedure for reporting an incident of harassment or discrimination, including information about how to contact the Department of Fair Employment and Housing and the Equal Employment Opportunity Commission.
  4. Use clear language. In drafting your handbook, you want to be sure that your employees will understand the rules and policies. You should therefore use straightforward language that is easy to understand, and which does not allow for ambiguities that could create problems.
  5. Have your employees sign an acknowledgement. All of your employees should sign an acknowledgement stating that they have read and understand your handbook, and that they agree to comply with its terms. This is true for existing employees who may already be employed when your handbook is created (or revised), as well as for new employees.
  6. Include a disclaimer. Your handbook should include language stating that you, the employer, retain the right to revise, change, and otherwise update your handbook as necessary. It should also inform employees that your policies are really guidelines, and that you have the discretion to apply them in the workplace.
  7. Don’t forget to update your handbook. You should review your handbook every year or two as a matter of course, to ensure that it is still in compliance with the law and your actual business practices. Keeping your handbook updated is essential in ensuring its continued effectiveness.
  8. Have an attorney take a look. There are many different kinds of employment policies, and just as many ways to word them. This means that there is also the potential for a lot of mistakes. It is therefore a good idea to have an employment law attorney review your handbook before you distribute it to your employees.

An employee handbook that is in compliance with all the relevant laws, and which addresses your business needs is a very valuable tool for your business.
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