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Employee handbooks can be a great way to provide employees with information they need about benefits, vacation days, and a whole range of company policies. However, employers must be careful when creating and updating employee handbooks to avoid unintentionally creating a contract between the employee and the employer.
Even the use of the term "probationary period" can imply that an employee will be entitled to other rights following that period, said Allan Weitzman of Proskauer Rose LLP. Speaking at the Society of Human Resources Management's Annual Conference and Exposition in Washington, D.C., Weitzman suggested that employers instead use the term "orientation" or "introductory period" to avoid the implication that employment status will change.
Weitzman pointed out that using a disclaimer will assist in preventing the creation of implied contracts. The disclaimer should clearly inform employees that the policies and procedures in the handbook are not intended to create a contract, and that the employment relationship can be terminated at will - at any time, for any reason, by either the employer or the employee.
In addition, the employer should include a provision reserving its right to change or discontinue policies and benefits. The disclaimer should be prominently displayed in the handbook, and each employee should sign a receipt acknowledging that they've received a copy of the handbook. Even with a disclaimer, Weitzman cautioned, it's important for an employer to follow the policies in its handbook consistently.
Speaking at the same conference session, Daniel Halem, also of Proskauer Rose LLP, urged employers to plainly state their rules, regulations, and procedures in the employee handbook, and to keep state laws and regulations in mind when deciding which policies to include. Among the rules and procedures employers should consider are:
- Access to personnel records
- Anti-Nepotism or no-spouse Rule
- Searches on employer property
- In-House investigations
- No solicitation, bulletin board and e-mail rules
- Travel policies
- Attendance, punctuality and dependability
- Performance evaluations
- Payment of wages
- Employer property
Halem also encouraged employers to include a policy that prohibits improper pay deductions and creates a procedure for employee complaints concerning deductions.
When creating a policy for confidentiality and communications, it is important to keep in mind that the National Labor Relations Act (NLRA) gives both unionized and non-unionized employees the right to engage in "concerted activities," including the right to discuss the terms and conditions of their employment, Halem said. Therefore, an employer should not make its confidentiality and communications policy too broad, or it may be interpreted as infringing on an employee's rights under the NLRA.
Weitzman also pointed out that some policies, such as an employer's Family and Medical Leave Act (FMLA) policy, must be included in its employee handbook. An employer should indicate in the policy whether it will require employees to apply paid vacation or sick time to their FMLA leave. State family and medical leave laws must also be considered when an employer creates its leave policy.
An employer's equal employment opportunity policy shows the employer's commitment to equal opportunity, and should be located toward the front of the handbook, said Weitzman.
Anti-harassment policies should include sex and all other protected characteristics, specifically state the Equal Employment Opportunity Commission's definitions, give examples of harassing behaviors, and define supervisory responsibility in enforcing and reporting harassment.
It's also important to clearly describe the employer's internal complaint procedure and, Weitzman emphasized, to provide employees with "multiple portals" for reporting harassment, rather than limiting employees to their immediate supervisor. Weitzman also stressed the importance of including a no-retaliation provision, particularly in light of a recent U.S. Supreme Court decision.