Employee Handbooks

What comprises an employee handbook?

Employee handbooks are useful tools for organizations seeking to inform employees and managers of the organization’s philosophy, expectations, policies, and procedures.  They can provide a roadmap to employers on how to handle certain situations that arise at work.  On the other hand, carelessly written handbooks or handbooks that are written and neither fully-implemented nor periodically reviewed can have devastating consequences for employers. 

The handbook provides a central place to crystallize an employer’s expectations of its employees, including standards of behavior.  It imparts a sense of the organization’s vision and culture.  It preserves an employer’s discretion and flexibility in handling workplace issues.  Significantly, it sets forth the at-will nature of the relationship.

Organizations are exposed to great risk in circumstances where handbooks or policy manuals are outdated, not consistently followed, not reflective of the work environment and culture, and not compliant with state and federal laws.  Arbitrary enforcement of policies or ill-defined workplace expectations lead to legal liability in court and a fractious work environment.  A review and examination of handbook policies on an annual basis is a sound employment practice.

So why does your company need a properly worded and legally updated handbook?

You are at legal risk if you do not have up-to-date policies in these areas, among others:

• Sexual and Other Forms of Harassment
• Electronic Communication
• Cell Phone Usage
• Discrimination and Equal Employment Opportunity
• Employment Complaint Procedure
• Family and Medical Leave Act
• Military Leave
• Nepotism and Fraternization
• Wage and Hour Issues
• Employee Classifications under the Fair Labor Standards Act (“FLSA”)
• “Safe Harbor Policy” under the FLSA
• Employee Benefit Programs

The laws change regularly.  For example, in 2004, the federal FLSA was substantially overhauled, resulting in many reclassifications of workers who are exempt and non-exempt from overtime provisions.  The amended FLSA now allows employers to adopt for the first time a so-called Safe Harbor Policy, to minimize exposure when an employer acts in good-faith to comply with the law.  In 2004, Massachusetts recognized “military service” as a protected category under its state discrimination law, now requiring equal employment, discrimination, and harassment policies to reflect this protected category.    In  a Supreme Judicial Court decision, Massachusetts also recently legalized gay marriages in the state, necessitating employers to reexamine benefits offered, leaves of absence, bereavement time, and other policies, to ensure that equal and fair treatment is accorded same-sex and heterosexual married couples. 

New Hampshire has likewise changed the legal landscape.  Since 2006, New Hampshire law requires employers to offer leaves of absence from work to those who have been victimized or otherwise affected by domestic violence crimes.  New Hampshire employers should be drafting policies on this topic, consistent with the new statute.    Effective January 1, 2007, New Hampshire’s Law Against Discrimination  requires an employer with six (6) or more employees to reasonably accommodate qualified employees or job applicants with disabilities, unless the employer can demonstrate that the accommodation would impose an undue hardship on the operation of the employer’s business.  The state law also prohibits a covered employer from denying employment opportunities, compensation, terms, conditions, or privileges of employment to any qualified disabled applicant or employee, if the denial is based on the need for the employer to make a reasonable accommodation to the physical or mental impairment(s) of the applicant/employee.
     
Significantly, as of January 1, 2008, New Hampshire will recognize same-sex civil unions, which will require employers to significantly revamp benefits and other policies in the organization.  Civil unions provide the same rights, responsibilities, and obligations as married couples.  New Hampshire now joins Massachusetts, Vermont, Connecticut and New Jersey, among others, in having this type of legislation.

By having a handbook that reflects your current policies and is consistent with the most recent employment laws, you can be confident that you are following all of the necessary legal mandates and fostering a fair and equitable work environment.  You are also well postured to defend employment lawsuits in court. 

Employment Practices Group provides these services for developing your Employee Handbook:

• Conducts a needs assessment of your organization and/or an Employment Practices Audit, working with your Human Resource representatives and management team that you select.
• Provides you with a questionnaire to guide you through the decisions you need to make regarding the contents of a handbook that works for your business.
• Works with you during the development process to ensure that all the important topics are addressed.
• Evaluates and revises your current handbook, or drafts and memorializes your “unwritten policies,” to be legally compliant and to ensure that they accurately reflect your organization’s current practices and culture.
• Creates an employee handbook that fits for your organization, as well as minimizes your legal risk.