In The News
A Double-Edged Sword
Aug 23rd 2008
Filed Under : industry
A DOUBLE-EDGED SWORD
Beware: Employee Handbooks can cut both ways!
Many employers believe they need an employee handbook with their policies and procedures. The goal is reduce stress and uncertainty for employees, which will lead to a happier and more productive work force. If the handbook is properly planned, written, and consistently implemented, those desired results should follow.
Conversely, if the handbook is not artfully crafted to meet each employer’s specific needs, or consistently applied, an employer could encounter such problems as work force doubts, confusion, loss of productivity, employee tensions, conflicts, dissatisfaction, contested claims, and litigation. If a dispute arises, an employee questions a policy, wants to report discrimination, or poor performance review is given, an employee handbook will be the first place that the employee turns. We can help you avoid the pitfalls summarized above.
Historically employers believed they were protected from any shortcomings in employee handbooks if their employees were all at-will employees. At-will employment means either the employer or employee can terminate the employment relationship at any time, with or without cause. Several years ago the Minnesota Supreme Court ruled that an employee handbook could create contractual obligations between the employer and employee, which can change the at-will employment relationship. Not surprisingly, after that ruling attorneys began reviewing and writing far more employee handbooks.
The policies included in a handbook will vary from company to company, depending on its size, number of employees, and benefits offered. Regardless of the size or complexity of your business, the handbook should contain enough detail to avoid confusion, but not so much as to overwhelm the writer or reader.
The most important items for an employer to include in its policy or employee handbook include:
• A Statement of the company's goals and philosophy
• Working hours
• Statement of nondiscrimination
• Harassment policy
• Procedures and policies for absence from work
• Performance evaluation procedures
• Pay periods
• Safety and accident rules
• Use of company property
• Vacation and holiday policies
• Other key issues effecting the company
There is a wealth of information regarding employee handbooks available online for free or at very reasonable prices. These "one-size fits all" prototypes should only be a starting point in preparing the handbook. There is a vast array of complex laws, regulations, and court interpretations for each policy that needs to be considered before implementing any employee policy or handbook. Many of these online forms contain boilerplate language that may not be applicable to your business, Minnesota law in general, or the current status of Minnesota law, law which seems to change yearly if not sooner.
As your legal counsel we can help create a good first impression of your company in your new employees' minds. They will see you and your company as more professional and may consequently act accordingly. Your new handbook will be an effective tool for addressing employment issues, problems and concerns.
If you have any questions or need our help, please call us.
Joseph G. Thompson
Daniels & Wymore, PLLC
3165 Fernbrook Lane N.
Plymouth, MN 55447
Direct: 763-201-1217
Mobile: 612-812-9120
Fax: 763-201-1216
jthompson@dnwlawfirm.com