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Answers....Explanations
 

1. Disclaimer

Every Handbook needs a Disclaimer that says the Handbook is NOT a contract of employment.

Yes. Actually, this disclaimer should be in at least two places in your Handbook: At the beginning...and near the end.


2. Employee definition

It's good to define employee classes as "permanent full-time" and "permanent part-time" employees.

NO. The word "permanent" implies a promise of employment which you can't terminate. You don't want to make such a promise, so don't use the word.


3. Probation

Your Handbook should explain your probationary period or new employees.

No. Like "permanent," the word "probation" implies a promise of a lasting job, once the probationary period is completed. Again, you don't want to make this implied promise. So scratch "probationary."


4. Quit notice

You should put this policy in your Handbook: "...we require at least two weeks advance notice before you terminate your employment."

No. If you require an employee to give you advance notice of quitting...you unintentionally may be limiting your "at will" rights. Is this what you want?


5. Sexual harassment

The sexual harassment policy should include a complaint procedure that gives a complaining employee more than one person to whom they can report a complaint.

Yes. In all complaint procedures, designate more than one person to whom an employee can file a complaint.


6. Garnishment

Garnishment is a nuisance, so your policy on garnishment of wages should include this strong warning: "An employee whose wages are garnisheed will face discipline, and possibly termination."

No. Careful. Federal law prohibits discrimination against an employee whose wages are garnisheed for child support. Also, your state law may prohibit you from punishing an employee whose wages are garnisheed.


7. Evaluation, performance review

You should include a policy that says your employees will receive a job performance review (or evaluation) at least once a year.

No. You don't want to obligate yourself to evaluations at certain times. If your supervisors fail to give such evaluations...disgrunted employees may charge you with discrimination. And even wrongful discharge.


8. Overtime

A good policy on overtime ties overtime pay to advance authorization to work overtime, with words like this: "...no overtime will be paid unless authorized in advance by your supervisor."

No. The wage and hour laws require overtime pay for overtime worked...whether or not it is authorized by the employer.


9. Discussion of wages

An employee's wages are confidential, so you want a policy that says..."discussion of wages among employees is prohibited."

No. Labor laws protect the employee's right to discuss any work-related condition with other employees. This includes wages.


10. Misconduct

In your list of examples of misconduct, be sure to include theft of company property.

No. Theft is a legal term that requires conviction in Court. To discipline or terminate an employee for theft unless the employee first is convicted of theft...exposes you and your company to wrongful discharge and defamation lawsuits.


11. Exempt and non-exempt

Your Handbook should clearly define two classes of employees. Exempt and non-exempt. With exempt employees being those who are legally exempt from earning overtime pay.

Yes. Don't confuse "salaried" employees with "exempt" employees. Simply paying an employee a salary does not automatically mean the employee is exempt from overtime pay.


12. Holidays

In your list of holidays with pay, you can include Christmas as the only paid religious holiday.

No. Employees who are not Christian may claim your policy discriminates against them, on religious grounds, by not providing them with a paid religious holiday.


13. Safety

Be strict when it comes to safety, and include a statement like this in your Handbook: "...employees will be disciplined for willful violations of safety rules and procedures."

Yes. Discipline only for willful violations of safety rules. Use unintended violations of safety rules as opportunities to teach and reinforce good safety practices.


14. Authority

Place this disclaimer in your Handbook: "No one,excepting the President of the company, can enter into an employment agreement with the employee."

Yes. This statement decreases the risk that a supervisor and employee will enter into an agreement at odds with the policies in the Handbook.


15. Benefits

In the benefits section, put this clear statement:"The employer can amend or terminate benefits at the employer's discretion."

Yes. This statement makes it clear you're not locked into benefit costs, that you are free to make changes as circumstances change.


16. Romance, relationships

To avoid conflicts-of-interest problems between employees, include a no-romance, no-spouse rule... one that prohibits employees from dating each other, and prohibits employment of spouses and relatives.

No. Life is too complicated for this kind of broad rule. Generally, a no-romance, no-spouse rule is acceptable only if it is justified by a clear business necessity.


17. Pregnancy

You should include a statement like this: "Pregnant employees are to inform us of their pregnancy, as soon as possible, so we can be sure you are assigned to work that is not harmful to you or to your child."

No. This has to be voluntary...for the employee. You must treat pregnant workers exactly as you treat any other workers who might be or could be medically disabled.


18. Adoption

You probably should include a policy that gives the same or similar leave benefits to adoptive parents that you give to natural parents.

Yes. Some states now require it. And the federal Family and Medical Leave act requires it for employers covered by the act.


19. Work week

Describe your normal work week as running from Monday through Friday...or some other four-day or five-day period.

No. Better to define your "work week" (forget the word normal...What's an abnormal work week?) as the seven-day period you use to calculate overtime.


20. Vacation policy

All vacation policies need this statement: "The employer reserves the right to determine when the employee actually takes vacation."

Yes. You need this statement in your Handbook to guard against employees taking vacation when you need them at work...and so you can require taking vacation in slack times.


For Further Explanation

This Handbook Self-Evaluator covers only 20 topics in a typical Employee Handbook...while an Employee Handbook can contain up to 65 or more topics.

For further information and explanations on topics in an Employee Handbook...go to Handbook Help or call Employers of America at (800)728-3187.

This Handbook Self-Evaluator is prepared by the staff of Employers of America.

Employers of America has been helping employers prepare better handbooks since 1981.

Employers of America is a national association dedicated exclusively to assisting employers and advancing the best interest of employers.

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