Friday, December 7, 2007

Does my company really need an Employee Handbook?

If you have more than 15 employees, it is careless if you don't have one. Fifteen employees is the threshhold concerning liability regarding discrimination claims. Other benchmarks include 20 employees for age discrimination, 50 employees for Family Medical Leave, and 100 employees under the WARN act.

An employee manual can create many advantages in litigating employment discrimination claims because in the handbook you can clearly ask employees to contact the appropriate individual before a claim is permitted to be litigated. In other words, an employee handbook, if properly constructed can give you additional save guards. These safe guards have been clearly delineated in a Supreme Court Ruling called the Farragher defense, which states that employees normally must give employers an opportunity to cure the discrimination they are experiencing.

Additionally, an employee handbook is a simple way of communicating an employer’s expectations and requirements to employees. While it is best to combine the delivery of the handbook with an oral discussion of key policies, the handbook’s collection of written policies provides employees with a place to go when they have questions. Moreover, employee morale is positively influenced when there is prior notice of what is required and even-handed application of those requirements. It is the presence of written rules and consistent application of them that can help employers prevail on such claims deriving from FMLA, Unemployment Compensation, and Discrimination.

Although in Florida, an employee handbook is not a contract, Courts, and more specifically, Jurors, will generally require the employer to follow its own policies and procedures. As such, don't make policies and procedures you do not intend to follow. Explain to the employee that their job is an "at will job" and make sure you require employees to acknowledge in writing that they have received a copy of the handbook.

In any event, before finalizing your employee handbook, you should have it reviewed by an Employment Law Attorney.

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