Employee Handbooks are Essential for Small Businesses
Clients frequently question the value of preparing an employee handbook. Many small business owners do not provide employees with an updated, legally-sound handbook due to the anticipated time needed to develop it and/or the belief that it is not necessary since they have good relations with their employees. Providing all employees with information on the company’s policies and guidelines, employee programs, attendance rules, and other work-related rules is one of the most important tools an employer can utilize to protect the company from employee disputes and legal liabilities.
An employee handbook minimizes misunderstandings and can be used as a communication tool between the company and its employees. A well-written handbook defines the job responsibilities and expectations of employees, outlines the employer’s obligations to its employees, and defines workplace expectations. Further, it sets uniform policies and procedures for addressing complaints, requesting time off, safety protocol, time keeping, and other workplace issues.
An employee handbook is also an opportunity to distribute the company’s employee benefit guide. Employees may not fully understand or appreciate all the benefits being offered to them, either at no cost or subsidized, by the employer. This includes paid vacation time, 401(k) plans, healthcare benefits, medical insurance at reduced rates, short-term disability and paid holidays.
Another significant benefit of an employee handbook is that it confirms and reiterates to each employee that an employee’s rights to employment are “at will,” meaning any employee may resign at any time, for any reason, or for no reason, and that any employee may be terminated at any time, for any reason, or for no reason.
From a liability perspective, an employee handbook can be used as evidence in a court action brought by an employee to demonstrate that certain acts are prohibited by the employer. Many employment, harassment, and wrongful termination claims can be defeated by establishing the rules and procedures of the workplace in the event violations of those rules and procedures led to disciplinary action, including termination.
A company’s existing employee handbook should be updated to address new concerns. As social media accounts become more prevalent, employers should consider adding a policy that addresses what communications are prohibited and the consequences of misuse of social networking related to the workplace. Employers should consider placing limits on posting confidential or proprietary company information, as well as photos taken at the workplace. It is imperative, however, that the policy, both as written and in practice, does not violate any rights given to employees under the National Labor Relations Act. To avoid subjecting the company to liability for claims of invasion of privacy, employers must understand the boundaries and apply the agreed-upon policy in a consistent and thoughtful way.
Attorneys at CMDA regularly counsel clients with developing and updating legally-sound employee handbooks that protect companies from employee disputes and legal liabilities.
Christopher G. Schultz is the managing partner of the Firm and concentrates his practice on representing businesses in many areas of the law. Additionally, he assists clients with estate and elder law planning. He can be reached at (734) 261-2400 or cschultz@cmda-law.com.
CMDA Law
Recent Posts
- Michigan Expands its Earned Sick Time Law and Increases Minimum Wage
- Richards’ Article on Medicaid Estate Recovery Featured in Urban Aging News
- Jim Acho Guest on WJR Morning and Afternoon Shows to Discuss New NCAA NIL Lawsuit
- Jim Acho Files Landmark NCAA Class Action Suit
- Livonia Attorneys Participate in Detroit Mercy Law School’s On-Campus Interviews
Recent Comments
Archives
- October 2024
- September 2024
- August 2024
- July 2024
- June 2024
- May 2024
- April 2024
- March 2024
- February 2024
- January 2024
- December 2023
- November 2023
- October 2023
- September 2023
- August 2023
- July 2023
- June 2023
- April 2023
- March 2023
- February 2023
- January 2023
- December 2022
- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- April 2022
- March 2022
- February 2022
- January 2022
- November 2021
- October 2021
- August 2021
- July 2021
- June 2021
- May 2021
- April 2021
- March 2021
- February 2021
- January 2021
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- July 2019
- June 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- December 2015
- November 2015
- October 2015
- September 2015
- August 2015
- July 2015
- June 2015
- May 2015
- April 2015
- March 2015
- February 2015
- January 2015
- December 2014
- November 2014
- October 2014
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- March 2014
- February 2014
- January 2014
- December 2013
- November 2013
- October 2013
- September 2013
- August 2013
- July 2013
- June 2013
- May 2013
- March 2013
- February 2013
- January 2013
- December 2012
- November 2012
- October 2012
- September 2012
- July 2012
- June 2012
- May 2012
- March 2012
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- June 2011
- March 2011
- February 2011
- October 2010
- August 2010
- January 2010
- January 2009
- September 2008
- June 2008
- May 2008
Categories
- 50th Anniversary
- Allan C. Vander Laan
- Appeals and Litigation
- Appeals and Litigation Articles
- Barbara M. Moore
- Business Law
- Business Law Articles
- Carol A. Smith
- Christopher G. Schultz
- Community Association & Real Estate Law Practice Group
- Community Association and Real Estate Law Articles
- Community Association Law
- Daniel W. Ferris
- Douglas Curlew
- Education Law
- Education Law Articles
- Employment and Labor Law
- Employment and Labor Law Articles
- Estate Planning and Elder Law
- Estate Planning and Elder Law Articles
- Firm News
- Gary D. Klein
- Gerald C. Davis
- Gregory A. Roberts
- Gregory R. Grant
- Haider A. Kazim
- Insurance Defense
- Insurance Defense Articles
- Isa M. Kasoga
- Jacklyn P. Paletta
- James R. Acho
- James W. Taylor II
- Jeffrey R. Clark
- Joel Ashton
- John "Jay" Gillen
- John D Gwyn
- John M. McFarland
- Joshua J. Cervantes
- Kenneth M. Gonko
- Kevin J. Campbell
- Kimberly M. Coschino
- Kristen L. Rewa
- Latest News
- Law Enforcement Defense and Litigation Articles
- Law Enforcement Litigation and Defense
- Linda Davis Friedland
- Litigation
- Margaret A. Lourdes
- Matthew C. Wayne
- Matthew W. Cross
- Michael O. Cummings
- Michelle L. Richards
- Municipal Law
- Municipal Law Articles
- News & Events for Business Law
- News & Events for Municipal Law
- News Archive
- Norman E. Richards
- Owen J. Cummings
- Patrick R. Sturdy
- Plaintiff's Personal Injury
- Plaintiff’s Personal Injury Articles
- Presentations & Articles
- Published Articles
- Ray E. Richards II
- Real Estate Law
- Robert J. Hahn
- Robert L. Blamer
- Ronald G. Acho
- Ryan D. Miller
- Sarah L. Overton
- Shane R. Nolan
- Stanley I. Okoli
- Stephen C. Johnston
- Suzanne P. Bartos
- Timothy S. Ferrand
- Uncategorized
- Utility Law
- Utility Law Articles