Way alter the provisions of this handbook. Nothing in this Employee Handbook or in any other human resource documents, including benefit plan descriptions, creates or is intended to create a promise or representation of continued employment for any Employee. Nonemployee compensation was previously located in Box 7 of the 1099 -MISC form and is now located in Box 1 on the new 1099-NEC form. This handbook details the changes for the file specifications for both ‘original’ records. May 16, 2013 Congratulations on even having an Employee Handbook! Many small businesses try to go without, which ends up being a mistake. A current and labor law compliant Employee Handbook is an asset. It welcomes new employees, answers commonly asked questions and establishes standards for consistency and accountability; it proves what the employee should.
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Effective Employee Handbook Examples
For an employee handbook to serve its purpose in the most effective manner, there are a few critical parts that need to be in place. These parts are separate sections that cover many of the potential issues that an employer must face to manage their employees in the best possible way. Below are employee handbook examples that outline these sections.
Company Values
This is typically the very first section in an employee handbook. It will be the first chance for the employee to learn more about the company from the perspective of its operators. It creates an opportunity to build excitement in the company and builds a relationship with your employees from day one.
There are a few essential subsections within this section, and these include:
- Company History
- Company Culture
The next section provides the employee with a precedent of what is expected of them. This section will build on the previous section and use the values as a foundation for creating rules of expected conduct.
In this section, the employer is allowed to define what is and is not acceptable for their employees. This creates vital guidelines for your employees so that they understand their expectations. Additionally, it can become a safety net for the employer in the instance that an ethics violation occurs. If the violation results in legal action against the employer, it can offer protection because it was clearly defined that these actions were unacceptable.
Federally Mandated Policies for Employee Reference
The employee handbook is not just a tool to guide an employee on how they should act. It also works as a quick reference for employees on the policies of the company. Some of these policies are required by the U.S. Department of Labor. Others are programs and policies instituted by the employer that needs to be made available for quick reference by the employee. Below are a few examples of policies that should be covered in this section.
The EEOC and non-discrimination policy in your employee handbook should be defined clearly. This states that your company will not discriminate based on age, sex, religion, disability, race, children, sexual orientation, or genetic information. Most importantly, it states that there will be no retaliation for reporting such indecencies.
This federally mandated policy states that if your company has greater than twenty employees, and you offer health benefits, the employer must provide the option to continue the benefits regardless of termination, and cuts in the hours of the employee.
This is another federally mandated policy that states that employees are entitled to twelve workweeks of leave within twelve months if they have one of the following conditions:
Birth of a Child, or if they need to care for a newborn within its first year.
If the employee adopts a child or becomes the foster parent of a child, within the first year of this event.
If the employee has a spouse, child, or parent who has a severe medical ailment.
There is also a provision stating that an employer must supply twenty-six workweeks of leave in a 12-month period if the employee to care for a military service member if that member is the spouse, child, parent, or next of kin to the employee.
This policy was signed into law in 1990 and states that the employer must provide reasonable accommodations to employees with disabilities. It also states that the employer cannot discriminate against their employees based on a disability.
This is yet another federal law that establishes compensation practices for your employees. It covers items such as minimum wage, overtime, hours worked, recordkeeping, and protections for children under child labor laws.
This list is not a comprehensive example of all of the policies that should be made clear to your employees, but it does reveal some of the most important laws that an employer must follow. Putting these policies into the employee handbook will give your employees peace of mind and a sense of security about their workplace. It will also work to remedy any compliance issues for your business that could result in fines, penalties, or even jail time.
In addition to the numerous federal policies that are required to operate your business with employees, it is a great idea to have an additional section with policies specific to your business needs.
In the modern business world, your employees will inevitably work hand in hand with technologies to make their job possible. Guidelines should be established for these devices to ensure that they are not used in a manner that is inconsistent with company standards or values. It would be wise to define retaliation for breaking any of the rules in this section if a fireable offense has occurred.
Sensitive Information Policy
This policy is all about protecting the valuable intellectual property of your business. The employee will be interacting with confidential information, secret processes, and other data that is proprietary to your firm. Creating a non-disclosure policy can protect your company from employees with malicious intent.
Employment Compensation
This section of the employee handbook is sure to be one of particular interest for any employee. It will cover essential items relating to the employee's salary. There are a few things that should be defined for the employee in this section. Examples of these include:
Pay Period
This is the perfect spot to state the pay interval for your employees. Typical pay schedules are weekly, bi-weekly, or monthly.
Overtime
Overtime is generally defined in the United States as anything over 40 hours worked in one workweek. It also includes an increased pay rate.
This section should also include a provision that overtime is only available to non-salary employees and also should cover any special situations for overtime as required by local unions.
Timecards
Timekeeping is the unit of measure to determine how much work the employee has performed. This section should show acceptable methods for recording time, as well as what procedures should be followed in correcting any possible inaccuracies in a timecard.
Employee Benefits
This crucial section of your employee handbook defines the benefits that are available to your employees. This section is vital because, for most employers, the benefits package is the other half of the coin in securing the best candidates for the job. The benefits offered by any given employer will vary from company to company, but there are a few that are typical for most employment situations.
Health Insurance
Health insurance offered by the employer has become a hot button issue that plays a significant role in the decision of an employee to join an organization. This section is the perfect opportunity to define who qualifies for this benefit, how the premiums are paid, and what, if any, the employer's contribution to the insurance premium is.
Retirement
The retirement programs for your company should be outlined in this section. Retirement plans such as 401k and IRA's should be described here. Additionally, this is an excellent spot to define criteria and limits for any employee contribution match plans that may apply to your company.
Employment Leave and Vacation
Vacation and leave for the employee should be stated, so they know: Japanese folk music.
- When they accrue vacation days
- How many vacation days they can accrue
- Requirements for using their vacation days
- If their vacation time rolls over from one year to the next
- What types of leave they are entitled to
- Conditions that must be met to utilize their leave
Covering these topics here will potentially eliminate any confusion on the part of the employees in the future.
Holidays
Your business should define which of the national holidays your company observes. It is also a good idea to define if employees are paid for holidays and any additional compensation paid for holidays that are worked.
Special Leave Conditions
As your company starts to build its workforce with more and more employees, you will inevitably be forced to handle a situation regarding jury duty and military leave. Using this section to stipulate company guidelines about these two events before they happen is a great way to solve an issue before it becomes a problem. It will also give the human resources department a reference when making decisions based on these scenarios.
Employee Grievances
This last major section of your employee handbook will provide a means for your employees to handle any issues they may have. Stating acceptable methods for the handling of policy violations, general grievances, and other issues is a great way to let your employees know they have a voice. This will allow them to direct their attention to the proper channel so that the situation of interest is resolved most appropriately.
Signature Page
An essential part of the employee handbook is the signature page. This is what makes all of the sections mentioned above valid and protects your business from disputes. The signing of this page will prove that the employee was given a handbook with plainly stated guidelines. The signature should also be an acknowledgment that any issues or discrepancies they had with the manual's policies were addressed and taken care of according to their needs.
An employee handbook is a compilation of your company's policies and protocols, as well as employees' legal rights and obligations. Read why you need one and how to create it.' />In “Resources to Help You Create an Effective Employee Handbook,” we identified key resources to help you create an employee handbook. Now, we cover why you need one and how to create it.
Business In A Box Employee Handbook Pdf
Whether your small business has two employees or 20, you will have certainly created workplace policies, procedures or expectations, either formally or informally. It's essential that your employees know and understand these policies — because you'll run a more effective organization if they do and because you don't want to risk having your company break federal or state laws.
Why Do You Need an Employee Handbook?
An employee handbook is a compilation of all your company's policies and protocols, as well as employees' legal rights and obligations. Having an employee handbook makes it easy for you to communicate rules and responsibilities to employees, so there's no question about what's expected from them — or from you, as the small business owner.
Moreover, a comprehensive employee handbook helps protect your business legally if anyone ever questions whether you've clearly communicated your policies.
Example: If an employee sues you, claiming they were harassed by a coworker, you can point to the employee handbook as evidence that you have clearly spelled out anti-harassment policies in place. (Keep in mind that having worker’s comp insurance is also important to protecting your business in case an employee or customer sues.)
What Goes Into an Employee Handbook?
Like every company, every employee handbook is different. You can't simply photocopy another company's handbook and distribute it to your employees. A good employee handbook defines your unique workplace rules and practices, and should be written in a voice that reflects your vision and the culture you've built — or want to build.
That said most employee handbooks include similar topics and types of information. Below is a look at eight common sections in employee handbooks.
1. Company Values and Mission Statement
In order to be successful, your employees have to be in alignment with your company's values, missions, and goals. That's why you need to lay out those aims at the beginning of your employee handbook. All you need to do is provide a statement that encompasses what matters most to you as a company. For example, successful online shoe retailer Zappos names 10 Zappos Family Core Values that it expects employees to aspire to, including “Embrace and Drive Change' and “Be Passionate and Determined.'
2. General Employment Information
A critical component of your employee handbook is the general information about being employed with your company. This will include topics employees care about, such as:
- Hiring policies
- Payment schedule (and payment methods available)
- Full-time vs. part-time hours
- Overtime pay
- Meal and rest breaks
- Leaves of absence
- Performance review procedures
- Safety and security procedures
- Resignation and termination procedures
Keep in mind that some of this material, such as overtime pay rules and workers' compensation coverage, are at least somewhat dictated by federal and state or even local laws.
3. Anti-Discrimination and Anti-Harassment Laws
It's important to list all of the current federal, state, and local laws that are pertinent to your workforce. These can include equal employment opportunity, anti-harassment, and anti-discrimination laws.
4. Standards of Conduct
Beyond the requirements of law, you probably have your own expectations for how employees will conduct themselves on the job and so you'll need policies geared to specific on-the-job conduct. Such policies may include:
- Dress code
- Drug and alcohol usage policy
- Ethics policies
- Personal technology use
- Social media policy
- Data and customer privacy
- Rules around accepting gifts from clients
- Conflict resolution policy
5. Employee Benefits
As should not be a surprise to you, the employee benefits section is one of the most frequently referenced sections of your employee handbook.
Your handbook likely won't describe all the specifics of, say, your health insurance plan, as those can be quite detailed (and that information can be provided separately). But you probably want to give the basics: When is an employee eligible to enroll in the company health plan and how many options do you offer: types of plans, family coverage? When is the annual open enrollment period?
Business In A Box Employee Handbook Sample
Similarly, you'll want to briefly lay out the other benefits you offer, such as:
- Vacation or paid time off (PTO)
- Any retirement plans you offer and who's eligible
- Insurance coverage you offer, including life insurance and short- and/or long-term disability
- Training benefits, including tuition reimbursement
- Any “soft' benefits you may provide, whether that's flexible scheduling, on-site yoga classes, or free lunches on Friday
Because your employees will often reference this section — who doesn't like to find out about on-the-job perks? — use it to your advantage and help them fully understand all they get as part of working for your company.
6. Confidentiality / Non-Disclosure Agreement / Conflict of Interest
Not every company includes this section, but companies that work in highly competitive industries with trade secrets and concern about employees jumping ship for a competitor may want to have employees sign a non-disclosure agreement or at least include a conflict of interest policy in the employee handbook.
7. Disciplinary Policies
It's important that your employees understand the risks of not following the policies, laws, and procedures that you lay out in the employee handbook.
Consider having a section that explains that they will be held accountable for their actions and behavior. You want employees to see that they’re receiving fair treatment and that all employees are subject to the same disciplinary process.
8. Disclaimer
It's important that your employees don't treat your employee handbook like a contractual agreement between you and them — which would mean they could sue you if the policies and procedures within the handbook aren't upheld. Thus, be sure to include a disclaimer that states the employee handbook is not a contract, to protect you against such concerns.
Pulling It Together
As you start thinking about and planning out your employee handbook, you might realize that you haven't formalized many of your policies or that you still need to consider more thoughtfully what some of your policies should be.
Don't worry — this is completely natural. Many small companies don't think concretely about their policies until they have to explain them in writing.
Here are four steps you can take to begin the process of creating your employee handbook.
1. Start With Your Culture and Values
A good place to start when thinking about your employee policies — whether specific to your attendance rules, your dress code, or your performance review process — is to think about your company's culture and values.
As the small business owner, think about your personal values and what you want to emphasize. Also consider how you can create a value system and culture that will motivate your employees to do their best and stay with your company long-term.
Business In A Box Employee Handbook Letter
The culture you want to create should guide your policies and procedures — so it makes sense to at least draft a basic mission statement before designing your company's employee policies and procedures.
2. Develop Your Policies
With your values clearly identified, then think about creating policies that your employees will embrace. For example, companies looking to attract younger workers often don't want to give the impression of being too strict or overbearing — as it may turn off the millennial workers seeking workplaces that promote flexibility and openness.
That said you might — out of necessity — have to be strict about certain policies. For example, if you run a business such as retail store where showing up to work on time is of utmost importance, you'll, of course, need to specify your attendance rules and perhaps your dress code.
You then may be able to be more accommodating or generous in other parts of your workplace practices, such as by providing your employees with more vacation time.
3. Know the Applicable Laws
Star wars empire at war s. While the employee handbook is not a contract with your employees, it does set their expectations, so you must follow federal, state, and local laws when preparing certain parts of your employee handbook.
Small Business Employee Handbook Pdf
For example, many states have passed “leave laws' that govern how employers must handle certain types of leave, whether that's sick leave or jury duty. They may even have boilerplate language that companies can use to describe those laws to their employees. You should be able to find descriptions of your state's laws online.
You should be able to find detailed descriptions of your state's laws on your state government's website. The Employment Law Handbook by The Lunt Group also provides links to a wide variety of both federal and state legal resources, including a state-by-state breakdown of employment and labor laws.
Business In A Box Employee Handbook Template
4. Look at Other Companies' Employee Handbooks
While you shouldn't copy other companies' policies and employee handbooks word-for-word, it's well worth your time to look through some of them for inspiration or ideas.
You may already have access to other company's handbooks through friends or relatives. Take advantage of opportunities to check out at least a few other handbooks as you're planning out your policies and procedures. You can also find sample employee handbooks through a basic Google search.