Most companies have an employee handbook, but do you know what's in yours? Better yet, when was it last reviewed for legal compliance?
Many small companies have a handbook that was based on (copied from?) another employer's from years ago. While it may have been good at the time, by now it has probably been edited and patched like a quilt, and some of those policies may be downright dangerous. One example is the old "use it or lose it" vacation policy which has been invalid in California for many years. Another is that old prohibition against "employees discussing their salaries", a no-no. Even your non-discrimination policy may be out of date, and may not protect you from administrative fines or lawsuits.
While new labor laws are created nearly every year, small companies routinely neglect to check their handbooks to match those changes. This year we have the added prospect of the Healthy Workplaces Healthy Families Act of 2014, which mandates paid sick leave after July 1st. Even if you already have a sick leave policy, the new rules have probably made it obsolete. Does your policy include part-time employees? Do you allow some sick time to carry over year to year? Do you pay for time off for certain crime victims?
Some employers have rules allowing time off to care for family members under the "Kin Care" law. Those rules may now conflict with the new mandatory sick leave law. Are you set up to track sick leave accrual and use? Do you require a doctor's note for time off? All of these issues are danger zones under the new law.
If you fire an employee for abusing sick leave, you could be accused of retaliation and heavily fined, or the employee might sue for wrongful termination, exposing your company to punitive damages.
Employers and their managers need to know what the new rules are and how to avoid violating them.
Other danger zones in employee handbooks include Internet use policies. Do you prohibit employees from damaging the company's reputation on Facebook? Do you tell them not to complain about the company in front of customers? These may seem like the natural rights of an employer, but the National Labor Relations Board (which no longer focuses only on union shops) has been cracking down on written policies that it sees as having a "chilling effect" on the employees' right to discuss complaints with fellow employees, even on the web.
Finally, do you have an arbitration provision that employees sign? Many employers have chosen not to use arbitration for fear the arbitrator will make a mistake and there'll be no right to appeal. But a properly written arbitration provision can include limited appeal rights, and there may be good reason to use arbitration.
Recent federal and state cases have allowed employers to enforce a ban on class-action lawsuits, which can be very expensive to defend even when very little harm has been done. Employers should consider using arbitration clauses to limit the risk of a catastrophic lawsuit.
And when you look for updated handbooks and policies, make sure they're written for California use. I don't have to remind you that California labor law is … just different.
Storrow can be reached at [email protected].
Many small companies have a handbook that was based on (copied from?) another employer's from years ago. While it may have been good at the time, by now it has probably been edited and patched like a quilt, and some of those policies may be downright dangerous. One example is the old "use it or lose it" vacation policy which has been invalid in California for many years. Another is that old prohibition against "employees discussing their salaries", a no-no. Even your non-discrimination policy may be out of date, and may not protect you from administrative fines or lawsuits.
While new labor laws are created nearly every year, small companies routinely neglect to check their handbooks to match those changes. This year we have the added prospect of the Healthy Workplaces Healthy Families Act of 2014, which mandates paid sick leave after July 1st. Even if you already have a sick leave policy, the new rules have probably made it obsolete. Does your policy include part-time employees? Do you allow some sick time to carry over year to year? Do you pay for time off for certain crime victims?
Some employers have rules allowing time off to care for family members under the "Kin Care" law. Those rules may now conflict with the new mandatory sick leave law. Are you set up to track sick leave accrual and use? Do you require a doctor's note for time off? All of these issues are danger zones under the new law.
If you fire an employee for abusing sick leave, you could be accused of retaliation and heavily fined, or the employee might sue for wrongful termination, exposing your company to punitive damages.
Employers and their managers need to know what the new rules are and how to avoid violating them.
Other danger zones in employee handbooks include Internet use policies. Do you prohibit employees from damaging the company's reputation on Facebook? Do you tell them not to complain about the company in front of customers? These may seem like the natural rights of an employer, but the National Labor Relations Board (which no longer focuses only on union shops) has been cracking down on written policies that it sees as having a "chilling effect" on the employees' right to discuss complaints with fellow employees, even on the web.
Finally, do you have an arbitration provision that employees sign? Many employers have chosen not to use arbitration for fear the arbitrator will make a mistake and there'll be no right to appeal. But a properly written arbitration provision can include limited appeal rights, and there may be good reason to use arbitration.
Recent federal and state cases have allowed employers to enforce a ban on class-action lawsuits, which can be very expensive to defend even when very little harm has been done. Employers should consider using arbitration clauses to limit the risk of a catastrophic lawsuit.
And when you look for updated handbooks and policies, make sure they're written for California use. I don't have to remind you that California labor law is … just different.
Storrow can be reached at [email protected].