The previous post outlined how and why you should adopt a defensive mindset. It is significantly easier to adopt the policy that prevention is more valuable than a cure. Still, as a business owner, this requires well-reasoned and deliberately crafted documents, handbooks, and contracts. Today, we will address the value and purpose behind an employee handbook and what should be included. It continues our previous discussion regarding what to do internally to protect your business from external threats.
Creating a Handbook
Everything we mentioned in the last blog (Part 1) heavily relies on the employer and employee (or contractor) understanding the expectations and the parameters in which they can operate. Having an employee handbook that anyone can access is critical because it defines and outlines your policies. Creating the policies is only one part of the equation. The handbook must be updated, reviewed, and discussed at regular intervals. Most importantly, Leadership needs to embody it for it to be effective.
Give your employees time to read, ask questions, and sign it during onboarding. This is the meeting of the minds principle that makes contracts powerful. Contracts for employees and independent contractors are fundamental. The terms of the agreement should all be documented and properly stored. The contract should include their responsibilities, their compensation package (including benefits for employees), how long the contract will last (contractors), and even how disputes will be handled when they surface.
Before we elaborate on what else should be included in one, it is equally important to establish what isn’t. An employee handbook is a crucial document that you should have, but it is also not all-encompassing. For instance, you (and potentially your attorney) will discover a need for non-disclosure agreements (NDAs), non-compete agreements, and non-solicitation agreements. These are separate documents that work to different ends. Although it is beyond the scope of this piece to discuss each one, know that there are additional layers of protection that exist outside of a handbook.
Here is a list of things that should be included when you create one because they center on policies and laws:
- Anti-discrimination including harassment, retaliation, discrimination based on gender, race, religion, and/or orientation
- Because Florida is an “at-will” employment state, you should identify that this is the nature of your working relationship
- Company values
- The Family and Medical Leave Act (FMLA)
- Employee Conduct (e.g., dress code)
- How to request time off and sick leave
- Who to contact if they have any questions, concerns or wish to file a formal complaint
Signs of an Ineffective Handbook
There are multiple layers of conflict resolution before something escalates to litigation, and you should utilize them. If an employee violates your discrimination policy and creates a poor environment for someone else, what actions should they take? Who should they report it to? What should they expect to happen when they do report it?
People would be more inclined to take legal action against your company when these policies and procedures don’t exist. Or perhaps they do exist and have no confidence that appropriate action will be taken once they report an incident.
Another Layer of Protection
After reading this blog series, we hope you have a deeper understanding of taking the proper steps to prevent costly issues later. The analogy we began with stemmed from building a fortified position because these people anticipated possible threats and took appropriate actions to create something that safeguarded them from the unknown. As a business owner, an infinite number of things exist outside your control but never overlook how much power you still possess. Although you will never exhibit complete control over an employee’s actions, you can establish systems, procedures, and processes that isolate you from the threat of litigation. Failing to take action equates to someone who knows a threat could come but doesn’t take the time to put up castle walls.
You are not alone in this battle. A relationship with a business law attorney who understands your values and mission can assist you with contract formation and review. Contracts are only valuable when they are enforceable, and the attorneys at Trembly Law Firm possess the analytical tools and experience to assist you. Contact our office today to schedule your consultation.
