Handbook Traps
By: Dennis Gardiner, Partner | email
Have you ever looked through your employee handbook as if you were an employee who might use it against you and your business? This type of auditing can help you avoid innocent statements that can turn into costly lawsuits.
•In your definition of “full-time,” you have: “After the probationary period, you then become a full-time permanent employee.” Here, you’ve promised permanent, never-ending employment that you can never terminate.
•In your maternity leave policy, you have: “Pregnant employees are to notify management as soon as possible...and are required to take a medical leave of absence.” This is a loaded statement, and one that could be considered discrimination. Also, it must be voluntary for the employee to inform you of her pregnancy and need for a leave of absence.
•Your wages policy says, “Discussion of wages among employees is prohibited. Anyone who violates this policy will be terminated.” This violates the national Labor Relations Act (NLRA) that gives employees the right to talk about working conditions, which includes wages. If you are found in violation of this policy, your business can be heavily fined.
•Your categories of employees include wording like: “Salaried employees are not eligible for overtime pay.” Paying an employee a salary doesn’t automatically make them exempt from overtime pay, federal and state rules determine that.
