Businesses of all sizes and shapes are “in the business” of conducting trade and commerce. Period. They carry out this simple “mission” by delivering goods, services, or hybrids of both. And, further, by innovating, and bringing those innovations to the marketplace.
One of the foundations of business enterprises are their diverse human resources. Employment law is a field of growing complexity, and is full of risk for employers, concerning compensation and benefits, discrimination claims at the hiring, retention, and termination phases, workplace injury, and governmental regulation at all of the federal, state, and local levels.
And, one of the further foundations of business enterprises is to implement their commercial activities as effectively, efficiently, and economically as possible in order to control their fixed and variable costs, to keep their profit margins predictable, to return a meaningful return on investment to the enterprises’ stakeholders, and, increasingly, to act as responsible stewards to the communities in which they operate. This can occur by the creation and maintenance of regular and routine policies, procedures, and practices, and procedures.
One way an employer can work to lessen its employment-related risks – and to increase its employees’ workplace satisfaction — is to create and maintain an employment handbook. As will be explained below, there are many categories of topics which a handbook can contain.
It is critical for an employer to determine if its manual is to be characterized (in court) as a type of contract. Given the “at-will” nature of employment in many states (including Florida), many employers attempt to distinguish explanatory employment handbooks from fully enforceable contracts. One way to attempt to negate the contractual status of a manual is to state clearly and conspicuously on the cover (and perhaps elsewhere, as well) that the employment handbook is not and is not to be construed as an employment contract. Even better…to have employees sign receipts confirming they understand and agree to the noncontractual nature of the manual.
There is a wide range of topics that can be addressed in an employment manual. The following are examples of categories and topics. Please note that there can be different topics, and more, as well.
• The nature of the employment relationship: example issues – employee classification categories; internships; background and reference checks; personal and family relationships
• Compensation: example issues – wages (including overtime); bonuses (including performance criteria); time reporting; salary and promotion reviews; breaks
• Benefits: example issues – medical insurance; retirement program; workers’ compensation; training and continuing education; licenses and certifications
• Workplace diversity: example issues – equal employment opportunity; anti-harassment and “whistle-blowing” policies and reporting procedures; disabilities accommodations
• Time-off/leave of absences: example issues – vacation and sick leave; family and medical leave; Florida’s statutory domestic violence leave; bereavement leave; jury and witness duty; voting leave; military leave of absence
• Workplace safety: example issues – drug-free testing and drug-free workplace; smoking; workplace bullying; safety (including driving); electronic communications, internet use, social media; business travel
• Workplace expectations: example issues – confidentiality; conflicts of interest; taking of company business opportunities; ownership of intellectual property; attire; resignation procedures
• Use of company assets: example issues – tools; keys; employee and client files; vehicles; computers (all types) and networks; telecommunications devices; “bring your own devices” policies
• Employment discipline: example issues – metrics and criteria; progressive nature; appeals; verbal and written; suspension; termination of employment; opportunity to rehire
Again, this is a partial list of the topics that can be included in an employee handbook to address the current state of employment law and practices. {Please note: This list and the contractual nature of employment manuals can be different or enhanced as to topics and presentation if a company is unionized, and subject to the specifically applicable set of laws.}
It is essential for a business to routinely review and update its employee handbooks and related documents (such as those used in hiring, “employee jackets”, and termination) against a constantly changing array of federal, state, and local statutes, rules, regulations, and cases. A company should make these reviews and updates a standard, second-nature function in order to remain in step with the frequently changing employment “playing field”, to provide its employees a state-of-the-art (better – a “best in class”) work environment, and — “on the other side of the coin” — to reduce its risk of public or private liability for not having complete and compliant employment policies and procedures.
Implemented properly, employee manuals can serve to lower risk (and affiliated costs) to employers and to create workplaces where, because the employees clearly understand their roles, functions, and benefits of employment, better business outcomes thrive.
PHILIP N. KABLER, ESQ. joined Bogin, Munns & Munns in 2014 as Senior Counsel. He has almost 29 years of experience in the practice of law. Kabler adds a broad spectrum of practice areas in the fields of business entities (formations, operations, contract negotiating/drafting/review, transactions, finance, human resources, risk management, asset and equity dispositions), real estate (commercial and residential), banking and the equine industry. For more information, call Philip N. Kabler, Esq. of the Gainesville, FL office of Bogin, Munns & Munns, P.A. at (352) 332-7688, www.boginmunns.com/gainesvillelawoffice.