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Employee Guidebooks – Why They are Important for your BusinessAuthor: Gene Wilson of Pantheos Employee guidebooks are widely used by employers as an efficient way to communicate basic information to employees about company policies and the employment relationship. Certain policies included in an employee guidebook are required by law or provide legal protections to the employer. Other policies in the employee guidebook provide information to the employee about the company, employee benefits, and what is expected of the employee, including workplace conduct, timekeeping, attendance, information security policies, and other important issues. A properly drafted employee guidebook can be a valuable communication tool provided employers take steps to avoid the legal problems that can arise when the guidebook is not properly drafted. Many employee guidebooks are riddled with mistakes that increase employer liability and make it harder for businesses to operate. Here are three of the biggest mistakes: 1) Inadvertently creating contractual rights to employment. In Illinois, the employment relationship is "at will," which means a company can terminate an employee for any lawful reason without notice. This "at will" presumption, however, can be altered by a poorly drafted guidebook which inadvertently guarantees employees certain rights. 2) Inaccurately classifying employees as exempt. Under the Fair Labor Standards Act, employers are not required to pay exempt employees overtime pay, while nonexempt employees are required by law to receive overtime compensation. There are certain categories of employees that companies are not required to pay overtime. An analysis of an employee's job duties is required to determine whether an employee is exempt or nonexempt. Employers often misclassify employees and assume that because an employee is paid on a salary basis that there is no need to pay overtime pay. 3) Neglecting to detail procedures for reporting and addressing harassment. Most employers recognize the need to have a policy to protect against illegal discrimination and harassment. Many employers, however, neglect to include procedures for reporting harassment or discrimination. Employers may also need to revise policies to deal with the increased reliance on technology, such as email, internet usage and office monitoring. Employers should add clear and precise provisions to deal with these technologies that can be abused and misused by employees. Here are some tips: - Specify each type of equipment that will be subject to monitoring, i.e. email, voicemail, internet access systems, hard drives, laptops, PDAs and cell phones.
- Include an acknowledgement form in your guidebook so that employees understand the monitoring policy and consent to each form of monitoring.
- Add provisions requiring employees to use only hands-free cell phones, PDAs or other devices while driving on company time or on route to conduct company business. Although not considered a legal requirement, this provision is essential in reducing the risk of car accidents.
If you are considering the implementation of your first employee guidebook or updating one that is years old, seek out professional advice and counsel. Seeking professional advice will ensure that your employee guidebook details all the necessary provisions, reflects any new labor regulations, and avoids the numerous mistakes employers routinely make. About PANTHEOS Group. PANTHEOS Group provides a variety of professional employer services, including Human Resources, Payroll, Risk and Safety and Benefits. The development of customized employee guidebooks for your business is a key part of their comprehensive list of services. Headquartered in Burr Ridge, IL, PANTHEOS is ready to be your Guardian, Partner and Champion. www.mypantheos.com 877-693-9700 |