As an employer that values their employees, you should make sure they have all the information they require to understand your company, their roles within it, and their legal rights.
One excellent tool for informing your staff about company policies, practices, and expectations is an employee handbook.
Employee handbooks are a great way for small business owners to fulfill their legal obligation to advise staff members of their rights and protections under local, state, and federal laws.
In light of this, here are the six steps you ought to adhere to when creating your personal employee handbook:
- Describe your company and the handbook’s objectives.
- Give the required legal details.
- Establish guidelines for pay, hours worked, and vacation time.
- Talk about safety procedures and guidelines.
- Set expectation for the workplace.
- Add a disclaimer
- Describe your company and the handbook’s objectives.
Introduce yourself and the mission of your company first. Describe the company’s history in brief. Talk about your business philosophy and the culture you’ve tried to establish. Next, include a brief explanation of how staff members are expected to use your handbook during their employment with your organization.
For instance, you are the owner of a small chain of restaurants. You may share the history of your first restaurant’s opening, its growth, and the changes that have occurred to its culture and ideals. The handbook isn’t only a helpful guide for onboarding and training, therefore explain that to your new team members.
- Give the required legal details.
Employee handbooks serve as safeguards against allegations of noncompliance with federal and state labor laws. Governments at both levels typically mandate employers to furnish specific information to their workforce, including the following:
- Policies on paid time off (PTO) or unpaid leave: The specifics of your PTO and paid sick leave policies hinge on your business model and the applicable state regulations. For instance, New York state mandates employers with net incomes exceeding $1 million to offer 40 hours of paid sick leave annually, while those earning less must provide 40 hours of unpaid sick leave yearly.
- Family and Medical Leave Act (FMLA) compliance: Businesses covered under FMLA are obligated to provide 12 weeks of unpaid leave per calendar year to employees dealing with serious health conditions or caring for a family member with such conditions.
- Notification of other legally mandated leave policies, such as those for military service, disability, voting time, or bereavement.
- Anti-discrimination policies: It is imperative to incorporate anti-discrimination policies into your handbook, along with any additional state non-discrimination statutes applicable to your business. This not only ensures legal adherence and shields against future grievances but also underscores your commitment to fostering a secure, inclusive environment. Title VII of the Civil Rights Act prohibits employers from discriminating based on race, color, religion, sex, national origin, or membership in a Native American tribe.
- Workers’ compensation: Employers are responsible for securing workers’ compensation insurance, which covers medical expenses and cash benefits for employees injured or ill due to job-related factors. Your handbook should clearly articulate the workers’ compensation protocols dictated by state and federal laws, as well as the procedures for employees to file claims when necessary.
- Establish guidelines for pay, hours worked, and vacation time.
Now, let’s delve into the core content of the employee handbook, which delineates the information employees are likely to consult regularly.
Time Management, Attendance, and Leave
Provide a comprehensive explanation to both full-time and part-time staff members regarding how their time is monitored and the expected hours of work per shift and week. Outline your overtime policy, clarifying which employees are exempt from mandatory overtime and which are not. If your company utilizes Homebase, include instructions on utilizing our online timekeeping system to ensure accurate hour tracking.
Discuss your attendance protocols, including policies regarding tardiness and the threshold for disciplinary action or termination due to unexplained absences.
Detail your time off procedures and ensure employees understand how to request time off. If there are distinct guidelines for sick leave and vacation time, elucidate the process for each type of leave in detail.
Wage Practices
Elaborate on the pay structure applicable to different employee categories in this section. If bonuses are offered, elucidate the criteria for earning them and the distribution process.
Inform employees that taxes will be deducted based on federal and state rates, along with any other relevant deductions such as those for health insurance or 401(k) contributions.
Include a clear payroll calendar to communicate payment dates and frequency to employees.
Employee Benefits
For standard benefits like health insurance or retirement plans, delineate eligibility criteria and enrollment procedures. Specify that part-time employees or those working below a certain threshold of hours per month may not qualify for certain benefit packages. Additionally, provide a list of documents required for benefit enrollment, such as forms for health insurance registration.
Where applicable, highlight other benefits in your handbook, including:
- Flexible work arrangements
- Childcare, education, or wellness stipends
- Health savings accounts (HSAs) or flexible spending accounts (FSAs)
- Assistance with student loans
- Dedicated time off for volunteering
- Opportunities for career development
- Employee discounts and incentives
- Talk about safety procedures and guidelines.
The safety concerns in your workplace can vary widely depending on your industry, from operating hazardous machinery in a warehouse to wearing appropriate footwear to prevent slips in a restaurant kitchen. Nonetheless, here are some general safety practices to incorporate into your safety manual:
Policies on Drug and Alcohol Usage
To ensure workplace safety, it’s important to establish clear guidelines regarding drug and alcohol use. For instance, make it explicit that employees are prohibited from consuming alcohol or marijuana while on duty, even in states where recreational drugs are legalized. Additionally, you can specify that employees suspected of being under the influence may be sent home without pay by managers or supervisors.
Some workplaces may also implement drug or alcohol testing policies. If applicable to your business, ensure that your policy adheres to relevant state laws and:
- Define a consistent set of rules applicable to all employees to avoid biased testing practices.
- Inform employees that testing will only occur with their informed consent.
- Clarify the procedures for reasonable suspicion drug testing, where applicable.
Safety and Injury Prevention Policies
Provide comprehensive explanations of what employees must do to uphold a safe work environment and comply with Occupational Safety and Health Administration (OSHA) regulations. This may involve additional training or certifications, and if necessary, provide employees with the resources needed to complete them.
Inform employees of their right, as per OSHA regulations, to report unsafe workplaces, incidents, or injuries. This includes the ability to request a workplace inspection if conditions are hazardous or substandard, as well as the right to file a whistleblower complaint if they experience retaliation after reporting an issue.
Harassment Policies
Clearly articulate your anti-harassment policies, which should encompass sexual, verbal, and bullying behaviors. Define what constitutes harassment and establish the consequences for policy violations.
Furthermore, employers are required by law to establish a formal harassment complaint process for their businesses. Therefore, provide employees with a detailed protocol they can follow if they experience harassment.
Depending on the state of operation, employers may be subject to anti-harassment training mandates. If applicable, outline these programs and instructions for completion in this section as well.
- Set expectation for the workplace.
Transparently communicate your expectations regarding employee conduct during work hours. Your handbook should delineate policies and procedures concerning:
- Adjusting work schedules
- Punctuality
- Dress code
- Regular breaks during shifts
- Workplace conduct encompassing language use, collaboration within teams, and customer service standards
Ensure that the rationale behind your policies is clearly explained, aligning them with your core values. By establishing standards early through your handbook, you enhance the likelihood of fostering the desired company culture.
Outline disciplinary procedures following the elucidation of your company’s values and expectations. Inform employees of the consequences for disregarding or failing to adhere to handbook guidelines. Employ straightforward language to describe the disciplinary process and clarify the number of warnings preceding termination as an option.
While employing common scenarios to illustrate the disciplinary process is acceptable, refrain from excessive detail or references to real-life incidents. Attempting to anticipate every potential infraction may inadvertently create loopholes that employees could exploit unintentionally. For instance, if you inform restaurant staff that performing off-the-clock work is illegal, they might misinterpret and remain logged in at the workplace after their shift, accruing overtime hours without informing their manager.
- Add a disclaimer.
Once your new team member has reviewed the employee handbook, ensure they sign a form acknowledging their understanding of its contents. Include a disclaimer specifying that the handbook does not constitute an employment contract; rather, it serves as an informational manual outlining company policies and is not legally binding.
Additionally, incorporate a statement indicating that certain company policies may undergo revisions in the future, and that regulations may still govern conduct or actions not explicitly addressed in the current handbook. This provision allows for continued discretion and control in the event of unforeseen circumstances.
Bottom Line
SW HR Consulting has been helping companies to build their teams and values for over 10 years. Contact us to find out more about our unique hr outsourcing services and see how our expertise can benefit you.
