Employee handbooks are critical for businesses because they operate as guidebooks. One of the first things an attorney will ask for in the event of an employment claim is your employee handbook.
A well-written employee handbook will offer your organization a defense against employee litigation. A poorly prepared employee handbook, on the other hand, might expose your firm to new legal obligations. As a result, you must be able to demonstrate that your handbook complies with all applicable federal and state legislation.
With these cautions in consideration, here are five typical employee handbook mistakes that put your company at risk of legal liability.
Common Handbook Mistakes that Increase Risk
With the ever-changing plethora of state and local laws, updating and maintaining an employee handbook has become a frequent HR burden for most firms.
Some of the common handbook mistakes that you should know are:
1. Not Having an Employee Handbook
As a business owner, you must recognize the value of having a well-defined employee handbook that establishes employee expectations. Not having an employee handbook puts your organization at risk of causing controversy, significant staff misunderstanding, or even a lawsuit and legal liabilities.
In most states, it is not unlawful to lack HR policies, yet it indicates a business owner's negligence. If you don't have clear employment regulations for your employees, make sure you describe what they are required to do. Managers without a handbook tend to be inconsistent in how they mete out discipline. In case of a legal dispute, it will be challenging to demonstrate that you follow policies consistently if you don't have a handbook.
In the instance of an employment dispute, the opposing counsel will find it simple to win the case by demonstrating that the lack of a handbook reveals a lack of consistent regulations under which employees are treated.
2. Omitting Disclaimers
A disclaimer must be included in a handbook, stating that nothing in the handbook forms an agreement of employment or affects the employee's at-will employment relationship. Handbooks should also incorporate a disclaimer that the handbook cannot cover every scenario that may happen in the workplace. The absence of a disclaimer in a handbook subjects your firm to legal risk.
Disclaimers are significant because they provide you the flexibility to interpret regulations in your own way. Mainly, disclaimers give you some leeway regarding employment concerns that aren't clear, and when your firm isn't sure how the law should be interpreted.
Additionally, a disclaimer safeguards you from allegations that an employee's position was deemed permanent. At-will employment disclaimers state that you have the authority to terminate the relationship at any moment. You won't be able to defend yourself easily unless a handbook has a disclaimer.
3. Adding Standard Operating Procedures (SOPs)
SOPs are thorough protocols that outline how personnel in a company should perform their responsibilities. Including SOPs in your handbook can impose legal risk. The employee handbook should clearly state your company's culture and expectations. As a result, you'll need a handbook that is free from SOPs and aims at providing clear direction for any situation that may arise in your corporation.
For example, if you fire a worker for poor attendance despite your handbook stating that other actions must be taken first, this might be used against you in court. Therefore, it's worth remembering that each organization is distinct, and your handbook should be designed to give you flexibility when dealing with problematic employees.
4. No Explicit Anti-Harassment Policy
Since a firm's anti-harassment policy and practices are fundamental, your handbook needs to effectively communicate and specify what harassment is and what personnel should do if they encounter it. In fact, the handbook should outline the steps to be followed when reporting a harassment case. It should specify who a worker should file harassment complaints to and other individuals if the official authorized under the rule is the accused harasser. You can choose an outsourced HR manager or high-level profile manager to handle complaints in this area.
5. Not Updating Your Employee Handbook
Without a doubt, federal, state, and regional employment rules often change over time, with many of them directly impacting how you must relate with your workers. Updating your policies can be challenging, but failure to do so can cause more problems for your business. As laws, trends, and emerging situations develop, such regulations must be included in the employee handbook. This will assist in avoiding legal risk and even liability.
Employee Handbooks Should Be Reviewed by Experts
Allowing professionals to review your handbook is critical since it will aid in the updating process, making it more pertinent in the event of a lawsuit or other legal concern. Furthermore, because an employee handbook serves as legal guidelines for your company's activities, having it evaluated by an expert ensures that it complies with all applicable employment regulations in your state.
The ideal option is to hire a Professional Employer Organization to provide comprehensive HR outsourcing. A professional employer organization (PEO) is a partnering corporation that embarks on a co-employment arrangement with a company owner, allowing the PEO to share and handle numerous employee-related tasks and liabilities.
It is the best option for HR outsourcing since it will allow you to adopt new and cost-effective approaches to make HR a competitive advantage for your company. With PEO, your company's growth becomes a top priority.
