Ask the Experts: Employee Handbooks
By: Haba Yono and Jennifer L. Muse | Honigman
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Q: We’ve heard time and time again in MRLA presentations that we should have an employee handbook. Why are employee handbooks so important, and what should we make sure to have in there from a legal perspective?
A: And, we will say it again—a good handbook coupled with appropriate enforcement of policies and procedures can be a great tool for any employer. An employee handbook has multiple benefits: it can provide required legal notices, set expectations of conduct for your employees, give notice of the “rules of the road” for your establishment, and be used to defend claims in an employee lawsuit. While each handbook will differ to meet the needs of the business, here are the top ten policies Michigan employers should have in their handbooks: At-Will Employment: This policy or disclaimer explains that employment is at will, which means that either the employer or the employee can terminate employment for any reason or no reason at all, with or without notice. This is the default type of employment here in Michigan—but an employer can cross over into a different type of employment arrangement, where the employer or employee can terminate employment for specific reasons only, through words, actions, or formal contract. This policy helps an employer to preserve the default at-will setting. |
Michigan Social Security Number Privacy Act: Michigan has a very specific Social Security Number Privacy Act, which requires individuals collecting such numbers to ensure to the extent practicable the confidentiality of the social security numbers. The Act prohibits unlawful disclosure of the social security numbers, limits who has access to information or documents that contain the social security numbers, describes how to properly dispose of documents that contain the social security numbers, and establishes penalties for violation of the privacy policy. Since employers have the social security numbers of employees for taxes and other purposes, employers should have a privacy policy in place that complies with the Social Security Number Privacy Act.
Equal Employment Opportunity: Employers should use their handbooks to emphasize their commitment to providing equal employment opportunity without regard to race, color, ethnicity, religion, age, sex, disability, weight, height, or marital status.
Prohibited Discrimination and Anti-Harassment: A handbook should make clear the employer’s position on discrimination, harassment, and retaliation. At minimum, the policy should state that discrimination and harassment based on sex, race, color, ethnicity, religion, age, disability, or other protected classification will not be tolerated, define the prohibited conduct, advise retaliation against a reporting employee is prohibited, assure employees that reports will be handled as confidentially as possible, and state that those responsible for discrimination and harassment will be subject to discipline. This policy (and the Complaint Procedure below) not only serves to define prohibited conduct, but also serves as evidence of the employer’s refusal to tolerate such behaviors in discrimination and harassment lawsuits and charges.
Complaint Procedure: Coupled with the Prohibited Discrimination and Anti-Harassment policy above, a detailed complaint procedure not only serves as evidence in lawsuits, but also gives employees power to report prohibited conduct and defines who is responsible for addressing the behavior. The policy should provide employees with several avenues to report prohibited conduct, such as the employee’s supervisor, a high-level member of management, human resources, and a reporting hotline or phone number. A good policy walks through what steps may be taken following such a report, assure employees that their reports will be handled as confidentially as possible, and state that retaliation against employees for complaints made in good faith will not be tolerated.
Workplace Violence: While it might seem common sense, a workplace violence policy further establishes that threats and any form of violence will not be tolerated. Similar to the complaint procedure above, employers should include a procedure for employees to report prohibited conduct.
Weapons: Another excellent policy to have is your establishment’s position on weapons in the workplace. In Michigan, an employer can prohibit weapons in the workplace. A direct policy on this point can prevent any confusion for employees.
Company’s Right of Inspection: A strong defensive policy for any employer is one that reserves the right to open and inspect items brought by employees into the workplace.
Pay Policies and Timekeeping: Give your employees the details on how payroll works and how they should track their time. Provide clear direction regarding hours worked, break policies, advance authorization of overtime work, and paydays. Make it clear that the company prohibits off-the-clock work to help avoid claims of unpaid wages.
Administrative Pay Corrections: Finally, a handbook should include a policy that provides information to employees on who to contact if they believe their paycheck is incorrect.
Weapons: Another excellent policy to have is your establishment’s position on weapons in the workplace. In Michigan, an employer can prohibit weapons in the workplace. A direct policy on this point can prevent any confusion for employees.
Company’s Right of Inspection: A strong defensive policy for any employer is one that reserves the right to open and inspect items brought by employees into the workplace.
Pay Policies and Timekeeping: Give your employees the details on how payroll works and how they should track their time. Provide clear direction regarding hours worked, break policies, advance authorization of overtime work, and paydays. Make it clear that the company prohibits off-the-clock work to help avoid claims of unpaid wages.
Administrative Pay Corrections: Finally, a handbook should include a policy that provides information to employees on who to contact if they believe their paycheck is incorrect.
For larger employers, if the company is covered by the Family and Medical Leave Act, then the employer must include a family and medical leave policy in the handbook. Employers may also consider including policies on drug use and alcohol abuse, computer and network use, expense reimbursement, attendance, social media, vacation, dress code, and discipline. Each employer should apply and customize the policies that meets their specific business needs.
Employees should be required to sign an acknowledgment of receipt of the employee handbook at the start of employment or as a new handbook is released. The acknowledgment should reiterate the employee’s at-will employment, at a minimum, and employers should store the completed acknowledgment with the employee’s personnel file.
Finally, handbooks are only helpful when they are appropriately used and adequately enforced. Managers and supervisors should be trained on the various policies and procedures in the handbook, so that they can properly enforce the policies. Reporting and complaint procedures should be followed, and appropriate steps should be taken each time there is a violation of company policy—whether it is counseling an employee, issuing a written warning, starting a performance improvement plan, or ultimately, terminating the employee.
Bottom line: Handbooks are good for employers, good for employees, and good for your business.
Employees should be required to sign an acknowledgment of receipt of the employee handbook at the start of employment or as a new handbook is released. The acknowledgment should reiterate the employee’s at-will employment, at a minimum, and employers should store the completed acknowledgment with the employee’s personnel file.
Finally, handbooks are only helpful when they are appropriately used and adequately enforced. Managers and supervisors should be trained on the various policies and procedures in the handbook, so that they can properly enforce the policies. Reporting and complaint procedures should be followed, and appropriate steps should be taken each time there is a violation of company policy—whether it is counseling an employee, issuing a written warning, starting a performance improvement plan, or ultimately, terminating the employee.
Bottom line: Handbooks are good for employers, good for employees, and good for your business.
