Handbooks: Friend or Foe of the Business Owner?
Often, my initial contact with clients results from something going wrong or an issue with an employee. As part of discussing and remedying the problem at hand, one of my first requests is to see the company’s policy on the matter. In response, I am frequently met with a hesitance level that indicates either they do not have a policy or are not confident in that policy. The client most commonly has a policy, but it is so outdated that it either isn’t legally compliant or doesn’t reflect what the company actually functions.
Why does this matter? Because a handbook loses its utility if it is inaccurate, outdated, or not legally compliant. If done correctly, an employee manual can and should be a resource for the employer. If done the wrong way or without customization, a handbook can come back to bite you.
Imagine you pull a handbook offline and distribute it to your employees. It turns out that a lot of the procedures in the manual do not apply to your company. You then have a dispute with an employee about how his manager handled a matter involving the employee. Armed with the handbook policies, the employee shows up to your office and demands to know why their manager did not follow the company’s guidelines. You are confused and then realize where the disconnect is.
This scenario is not infrequent and can cause a lot of trouble for employers. This is especially true when their handbook policies or actions are not compliant with applicable law. It also leaves many business owners with a bad taste in their mouths for handbooks and general and a misperception that handbooks are the enemy. However, that couldn’t be further from the truth.
Carefully drafted handbooks are an opportunity for employers to communicate to employees the company’s policies and procedures, set expectations, and notify employees of how the company is complying with applicable state and federal laws. Here are a few tips for how you can make sure your handbook is a friend, not a foe:
- Customize, customize, customize! Every company’s needs are different depending on its size, geographical footprint, culture, and operations. While you do not need to reinvent the wheel, you better make sure it fits your car!
- Make sure it is compliant with state and federal laws. Now that employees are working remotely, many are moving to other states, requiring employers who were only ever based in one jurisdiction to examine and comply with other state employment laws.
- Keep it current with yearly updates. Employment law is an area of law that is continuously evolving, and so are company operations and procedures. While yearly may seem burdensome, updates are often quick and easy, barring substantial changes in operations or the law if you start with a good base document.
Ultimately, when it comes to handbooks, they can be a great “friend” to the employer when a company gives them the attention they deserve.
Questions about this or any other legal matter, please contact Sarah at Sarah.Sawyer@offitkurman.com.
Subscribe to Sawyer the Lawyer »
ABOUT SARAH SAWYER
As an experienced business advisor and litigator, Sarah works with business owners to implement policies and practices that keep their businesses running smoothly, helps them avoid expensive legal battles, and fights for them when litigation arises. Sarah focuses her practice on providing her clients with general business advice, drafting and analyzing employment documents ranging from employment agreements and severance agreements to employee handbooks, and litigating all aspects of general civil and commercial disputes.
ABOUT OFFIT KURMAN
At Offit Kurman, we are our clients’ most trusted legal advisors, professionals who help maximize and protect business value and personal wealth. In every interaction, we focus on furthering our clients’ objectives and provide timely services and within budget, all while focusing on the clients’ interests and goals.
Offit Kurman is one of the fastest-growing, full-service law firms in the United States. With over 230 attorneys offering a comprehensive range of services in virtually every legal category, the firm is well-positioned to meet dynamic businesses’ needs, as well as the needs of the people who own and operate them. We also provide representation of individuals and families in diverse matters ranging from estate planning and asset protection to intellectual property structuring and entrepreneurial start-ups. Our International Group provides clients with a broad range of services for transactions and dispute representation for clients worldwide, including Europe, Canada, Asia, Latin America, the Middle East and Africa.
At Offit Kurman, we distinguish ourselves by the quality, breadth, and global reach of our legal services — as well as our unique operational structure, which encourages a culture of collaboration and entrepreneurialism. The same approach that makes our firm attractive to legal practitioners interested in representing clients in the middle market, also gives clients access to experienced counsel in almost every area of the law and in many jurisdictions in the U.S. and abroad
Subscribe and follow us on our Blog, and on Facebook, Twitter, Instagram, YouTube, and LinkedIn. You can also sign up to receive LawMatters, Offit Kurman’s monthly newsletter covering a diverse selection of legal and corporate thought leadership content.
DELAWARE | MARYLAND | NEW JERSEY | NEW YORK | NORTH CAROLINA | PENNSYLVANIA |SOUTH CAROLINA | VIRGINIA | WASHINGTON, DC