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Jon Yarbrough's
 "Employment Law Corner" 
courtesy of the 
Asheville Citizen-Times

The Employment Law Corner is the property of the Asheville Citizen-Times to whom we extend our thanks for allowing us to republish the article.    

March 27, 2006:
"
Employers: An Employee Handbook is Your 1st Line of Defense"

 New employees review and sign employee handbook statements. Usually, they also sign individual policies that place extra emphasis on harassment and workers' compensation procedures. Are you missing anything?

Employers may want to adopt policies regarding pre-employment background checks at the post-application/pre-hire stage. Employers may also want to create cell phone usage policies especially since so many cell phones contain cameras and other recording devices. Finally, with $85 billion in productivity lost every year to Internet surfing and e-mailing, you may want an Internet and e-mail usage policy.

Want some good reasons not to update your handbook? Try these:

You enjoy defending a breach of contract claim.

Employment is normally terminable at will, meaning an employee may quit anytime and, likewise, an employer may terminate the relationship at any time. At-will status, however, can be modified with the creation of an employment contract. Poorly drafted handbooks can create unintended contracts. To avoid this problem, be sure your handbook contains a clear and conspicuous disclaimer stating that the handbook "is not intended to create a contract of employment between the company and any of its employees or otherwise alter or modify employees' at-will status."

ou give employees the chance to plead ignorance.

Regardless of whether your policies are clear and distributed to all employees, failure to obtain signatures acknowledging receipt of handbooks allows employees to later claim they never received copies. A written acknowledgment leaves no room for the "ignorance" plea.

You prefer to litigate your FMLA disputes.

If your company is governed by the Family and Medical Leave Act, your handbook should address your company's requirements that vacation and sick time be exhausted before unpaid leave is taken, that employees must provide at least 30 days' advance notice of their need for leave if the leave is foreseeable, that employees must produce certification of their medical condition from a health care provider and that FMLA absences will be calculated using a "rolling calendar" method. If you don't cover these issues in the handbook, you best be prepared to discuss them in court.

You don't care if employees spend all day surfing the Internet.

Employers recognize the need to monitor employees' use of computers, Internet and e-mail. Most electronic monitoring is permitted if you obtain employees' consent. Consent may be implied if the handbook contains a clear provision notifying the employees that you may monitor their communications. I once had an employee argue that since the employer did not have a written policy prohibiting him from viewing what could be best characterized as soft porn while working, that he should not be disciplined. It is better to have a policy so such silly arguments cannot be made.

A related issue is access to employees' personnel files. There's no federal or state law giving employees the right to inspect their own personnel files, but you may want to include in your handbook any policies that govern access to personnel files, such as who has access, under what circumstances, whether specific times are permitted for inspection, and whether such review will be under the supervision of your records custodian.

You don't care if they say you discriminate.

Regardless of effective policies, trained managers and vigilant monitoring, most employers eventually face a charge of discrimination. An equal employment opportunity statement is now considered essential in personnel handbooks. The presence of an EEO statement impresses upon management and employees your position on the issue. Conversely, the absence of an EEO statement in a personnel handbook may give the faulty impression that you aren't concerned about discrimination in the workplace.

Here's the point: the first line of employer defense is the handbook. Given the frequent changes in laws affecting employers, it is important to review and audit your policies and procedures so you too can maintain the effectiveness of your first line of defense.

Jonathan W. Yarbrough is a member of the law firm of Constangy, Brooks & Smith LLC, which is dedicated to representing management exclusively in all aspects of the employment relationship. Contact Yarbrough at 277-5137 or jyarbrough@constangy.com

The Western North Carolina Human Resources Association makes no warranties as to the accuracy of the contents of the information provided in this site and the corresponding links.  The content is for  informational purposes only.  Visitors are strongly encouraged to consult legal counsel on any specific issues.

 

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