Employee Handbooks are essential tools that communicate the policies, procedures, and values of your company. Whether creating one for the first time or updating an existing handbook, remember that handbooks are not static documents. Federal and State legislation, regulation, and judicial decisions can alter the employment landscape in relatively short order, and changes in your company can determine the applicability of various employment provisions. Periodically updating your employee handbook is a great idea. Annual or biennial review will help keep your company up to date and in compliance.
Conforming your handbook to reflect changes in workplace policies or employee benefits is also important. Out-of-date policies or handbooks might support allegations based on nonconformity with written policies. Learn more about how to decide when to review and make updates to your employee handbook.
Events That Should Trigger an Employee Handbook Update
When major events affect the operation of your business or the way your employees work, consider immediately updating the employee handbook.
Changes in Pay Structure
If the company changes employee compensation guidelines for regular pay or bonuses, the handbook should be updated immediately. Incorrect information about pay should never be part of a handbook and is likely to upset employees.
Changes in Laws or Markets
If new laws go into effect at the local, state, or federal level that change how employees must perform their jobs, consider updating the employee handbook.
You should also perform updates when the company begins operating in new jurisdictions that affect how employees work. Beginning operations in a new state or country can greatly affect employees’ responsibilities under the laws they must follow.
If the company begins operating in a new industry or market segment, an update to the handbook is a good idea to reflect any new regulations to follow.
Changes in Expectations for Workplace Behavior
If your company adopts some new social or cultural policies that affect the expectations of behavior for employees at work, these items may require a handbook revision or issuance of a formal policy. New policies regarding behavior should be incapable of being misconstrued. Informality may convey the gist of a policy, but without details, unforeseen circumstances may not fit well within the policy.
Changes in Employee Count
If your company is growing, it may surpass a certain number of employees. Such growth might place the company in new categories requiring deeper attention to different business laws and regulations. Overall company growth can necessitate updates to your employee handbook.
Making Regular Updates in an Employee Handbook
Although you should consider adding new information to your employee handbook any time your business or industry undergoes a major change, regular reviews are also important.
It is advisable to set up an annual review of the rules and language in the handbook. Even if you recently added sections to the handbook to deal with workplace discrimination or the code of conduct for employees, annual reviews are beneficial to reflect evolving norms and protocols as well as current judicial interpretation of existing laws..
Focus Areas During an Annual Review
During the annual review, you can focus on the overall information included, looking for the following:
- Unclear language
- Readability
- Organizational Structure
- Outdated information
- Duplicative information
- Vague or conflicting provisions
Avoid Falling into a Rut with Annual Reviews
Getting a different set of eyes to review your handbook can be beneficial and avoid pitfalls associated with familiarity. Consider letting new multiple people participate in a review rather than the same person year in and year out. An employee who has read the material dozens of times is more prone to gloss over areas that might need improvement. In larger companies, a committee of employees can recommend changes from various perspectives.
Have Legal Professionals Review the Handbook
Consider having your company’s attorneys participate in an annual or biennial review. Counsel can identify issues based on recent legal developments. The reviewers inside the company can focus on ensuring the employee handbook is an effective document and a valuable resource for employees.
Having attorneys help with the review could make you aware of new laws and regulations that might affect your company’s operations. Your attorneys can determine whether such items affect your employees and whether they should be part of any handbook update.
Questions
When legal questions arise about policies you may be updating in your employee handbook, Anderson Jones, PLLC, is ready to help. Our attorneys provide business general counsel services to companies throughout the Raleigh region.
For a consultation regarding any legal questions you have related to your business, call us today at 919-277-2541.