3 Costly Employee Handbook Mistakes
Creating a customized, legally sound and easy-to-understand employee handbook can be a challenge. Handbooks must be regularly updated to keep them legally compliant with frequently-changing state and federal laws. According to BLR, “Many employee handbooks are riddled with mistakes that increase employer liability and make it harder for businesses to operate.”
The following are the three biggest employee handbook mistakes according to BLR:
Inadvertently creating contractual rights to employment. Poorly drafted handbooks can violate Ohio’s “at will” policy by stating that an employee can only be terminated for "just cause" or by guaranteeing certain disciplinary procedures prior to termination.
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Inaccurately classifying employees as exempt. Poorly drafted handbook policies on employee classifications and overtime can be used against companies as evidence of a violation of the Fair Labor Standards Act and open the door to employee claims.
- Neglecting to detail procedures for reporting and addressing harassment. Most employers recognize the need to have a policy to protect against illegal discrimination and harassment. Many employers, however, neglect to include procedures for reporting harassment or discrimination.
A small investment in a legally-compliant, employee-friendly handbook can save you thousands of dollars down the road in legal trouble and problems with employee relations.
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