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Austin TX Business Law Blog

Wednesday, February 24, 2016

Reasons for Employee Handbooks

According to the Small Business Administration, what topics should employee handbooks cover?

While it is not legally required that every small business have an employee handbook, it is highly recommended for companies with more than a few employees. Employee handbooks work to standardize expectations for both employers and employees, and offer the company legal protection. Since employee handbooks set forth company policies clearly in black and white, they can help to keep friction and disputes to a minimum.

What Your Employee Handbook Should Cover

So that everyone understands the rules of the road from the first day of employment, employee handbooks typically cover standards that must be met by both employees and employers, including:

  • Non-disclosure agreements (NDAs) and statements concerning conflict of interest
  • Anti-discrimination policies: compliance with equal opportunity laws, including the Americans with Disabilities Act; information about discrimination and harassment
  • Compensation information: wages, overtime, performance reviews, raises, time-keeping records, breaks, bonuses and workers' compensation
  • Employee Benefits: including health insurance, retirement plans, wellness programs
  • Work schedules: work hours, attendance, punctuality, flexible hours and telecommuting
  • Leave Policies: vacation, sick leave, holiday, bereavement, family medical leave, jury duty, military leave, leave for voting and court cases
  • Conduct standards: code of dress, legal obligations, ethical behavior (avoiding harassment), privacy rules, particularly in activities under government regulation

In addition, employee handbooks should provide employees with an overview of the business and its general policies, including:

  • Hiring practices:  job postings and employment eligibility
  • Referrals, probationary periods, transfers, relocations, union information
  • Resignation and termination procedures

Safety and Security

As the owner of the company, you are responsible for creating a safe and secure workplace for your employees, meaning the premises should comply with Occupational Safety and Health Administration (OSHA) laws. Your employee handbook, therefore, should state clearly that all accidents, injuries, safety hazards and safety suggestions should be promptly reported to management.

In addition, the employee handbook should make abundantly clear that employees also have a responsibility to maintain a safe and secure work environment -- keeping pathways unobstructed, turning off appliances when not in use, and being committed to securing electronic information on their computers.

If you are starting up a new business or taking over an established one, you should consult with a firm of skilled and experienced business attorneys to make sure that you proceed in a legal, ethical, and efficient manner.


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