Designing Employee Handbooks

1. Designing Employee Handbooks Legal Limitations

2. Employment At Will • Employees shall not be considered permanent employees. • All employment is at-will. • Employees may have their employment discontinued for any reason.

3. Not a Contract • Nothing in this employee handbook shall be construed as an employment contract.

4. Changes in the Handbook • Management may make changes in the employee handbook at any time.

5. May vs. Must • “May” statements provide more flexibility than “must” statements. • For example: management must complete performance appraisals by March 1 might cause legal problems if that “must” is not obeyed. “May” is much better.

6. Sexist Language • Be politically correct in your language • Refer to sales people rather than salesman • Refer to Workers’ Compensation rather than Workmen’s Compensation

7. Posters--Federal • OSHA—It’s the Law • Employee Polygraph Protection Act • Fair Labor Standards Act • Equal Employment Opportunity Notice • Department of Justice Notice—Anti-discrimination

8. Posters--Idaho • Workers’ Compensation Notice • Idaho Unemployment Insurance • Discrimination • Minimum Wage

9. Safety • For companies with 11 or more employees, make a provision for safety administration

10. Separate Recordkeeping Files • Medical records: workers’ compensation claims, exams, and drug and alcohol tests • EEO-1 reports for companies with 100 or more employees • Reference checks • Immigration files • The rest

11. Length of Time to Keep Records • I9 Form: 3 years • Pension-related files under ERISA: 6 years • Wage rate tables under the FLSA: 2 years • Records detailing exposure to toxic substances: Employee’s tenure plus 30 years

12. Fair Labor Standards Act • Overtime • Time-and-a-half • Independent contractors

13. Independent Contractor Definition20 IRS Rules • Set the hours of work? • Dictate the methods by which the task is to be completed? • Pay an hourly wage? • Supply materials, tools? • Furnish space, telephone secretarial services? • Set fixed geographic limits on the work?

14. Independent ContractorsBenefits • Don’t have to pay Social Security, Unemployment Insurance, Workers’ Compensation. Contractor does this on his/her own. • Don’t have to deal with city, state, and federal income taxes. Contractor does this on his/her own.

15. Independent Contractor Limitations • Lose employer control of contractor • IRS penalties for paying a contractor when you really have an employee

16. Top Twelve Handbook Updates—1. Workplace Violence • Provide employees with reporting opportunities, counseling avenues, and general guidelines on how to act when there is a threat. • Source: Nationalreview.com

17. 2. Benefits Provisions • Monitor changes in benefits plans—particularly health benefits • Obama Health Care Plan--Employers who choose to offer employees health insurance can receive tax cuts of up to 35% of premiums this year, and up to 50% in 2014. More than 60% of small employers will be eligible for these tax cuts.

18. 3. Employee Free Choice Act (still a bill) • Make sure to update bulletin board solicitation in the handbook. Ban all outside solicitation to be consistent.

19. 4. Text Messaging • Texting and Driving • Harassment • Retaliation

20. 5. Social Networking II--Advantages • Networking • Goodwill • Idea generation • Customer complaints and praise • Recruiting

21. 5. Social Networking III-Disadvantages • Sexual Harassment • Time Management and Productivity • Security • Privacy—Confidential Information • Accuracy • Defamation • Discrimination

22. 6. Location Monitoring • Restrict used of GPS, RFID due to privacy and discrimination concerns • Check http://www.computer.org/portal/web/csdl/proceedings/h#4 for problems and policy statements

23. 7. Adverse Weather/Other Closings • How affect employee compensation for both exempt and nonexempt employees • H1N1

24. 8. Family Medical Leave Act • Military Families—Up to 26 weeks of leave to handle injured or ill military member of the family • http://www.slideshare.net/mdibi/ada-fmla-update

25. 9. Americans with Disabilities Amendments Act of 2008 • Eased definitions of handicapped—creates nonexhaustive list • Sitting, bending, caring for oneself • Functions of the immune system, normal cell growth, bladder functions • Common sense standard—not scientific • http://www.slideshare.net/mdibi/ada-fmla-update

26. 10. Respectful Workplace Policy • Jerksatwork.com • Mybossismichaelscott.com • Defining respectful workplace behavior separate from harassment policies because harassment is illegal and disrespect is not

27. 11. Genetic Information Nondiscrimination Act • Genetic information should be added to the list of protected classes • Update wellness programs to protect genetic information

28. 12. Charities and Tax-Exempts • Revised IRS Form 990 asks whether employer has whistleblower, conflicts of interest, and document retention and destruction policies. • Same form asks about executive compensation procedures

29. Sample Handbook Statements • Society for HR Managementwww.shrm.org (have to be a member) • Bureau of National Affairs’ HR Library (http://library.boisestate.edu/indexes/) Have to be on Boise State campus • Federal government page with exampleshttp://www.business.gov/business-law/employment/hiring/employee-handbook.html • Several state exampleshttp://easyemployeehandbook.com/ • Nevada Handbook • http://dop.nv.gov/emphand.pdf • Generic samplehttp://www.fhba.com/docs/Employee%20Handbook%20Sample.doc • Many university examples http://www.hr-guide.com/data/023.htm