As a small business owner, you need to inform your employees of your policies, procedures and expectations. Employees should also be aware of their rights and protections under state and federal law.
This information should be integrated into a document called the Employee Handbook. An employee handbook is not required by law, but it is a simple and effective way to communicate this information.
This article describes:
- What is an employee handbook?
- Are employee handbooks required by law?
- What to include in your company policy
- How to Create an Effective Employee Handbook
let’s start.
What is the Employee Handbook?
When a new employee joins a company, they are usually given a guide called an employee handbook or manual. The employee handbook contains valuable information about your company. This includes our mission statement, values, policies and procedures.
It can also include employee rights that the employer is legally required to provide.
Providing an employee handbook helps employees better understand the business and what is expected of them. We also help you meet your legal obligations as an employer.
Are employee handbooks required by law?
We are not legally required to provide an employee handbook. However, state and federal laws require employees to be provided with information about paid time off (PTO), sick leave policies, workplace rights, and protections.
The Equal Employment Opportunity Commission (EEOC) and the Family and Medical Leave Act (FMLA) outline certain workplace rights and protections. This should be communicated to new employees in the employee handbook.
Disclaimer: This article was not written by a legal professional and should not be considered legal advice. Contact an employment attorney or HR expert Answer legal and compliance questions.
Why Small Business Employee Handbooks Matter
Employee handbooks help establish a consistent approach to workplace policies. It can prevent misunderstandings and conflicts and even increase employee retention.
It’s important to tailor the employee handbook to your company’s specific needs and culture. A one-size-fits-all approach is ineffective.
using tools like Home Base HR Pro Helps you create employee handbooks efficiently. Our certified HR experts can provide handbook examples and even create a template for your business.
I will also send labor law warningso you know when to update the policy.
What to include in your company’s employee handbook
When creating your employee handbook, make sure you cover the basics new hires need to know. It should include everything from business values and culture to policies and procedures. This helps team members understand what is expected of them.
Remember to include information about your rights as an employee. We are legally obligated to tell you this.
Here is a list of key sections that should be included:
- Mission statement and business backstory: This helps new hires understand the company’s goals and values.
- Purpose of the handbook: Explain why the handbook is important and how employees can use it in the future.
- Equal Employment Opportunity Statement: This shows that your business does not discriminate based on race, religion, or gender identity.
- Employee Rights: This includes legal privileges under laws such as the Fair Labor Standards Act and the Americans with Disabilities Act.
- Workers’ Compensation Policy: This should outline how employees make claims in the event of a workplace injury.
- Workplace policies and procedures: This includes roles and responsibilities, wages and compensation, PTO and sick leave, etc. Also include workplace safety procedures, disciplinary and termination procedures.
- Voluntary Employment: Let employees know if they have agreed to a voluntary employment contract. Employees may be dismissed or terminated at any time for legal reasons.
How to Write an Employee Handbook: A Step-by-Step Guide
As a business owner, you need to lead your employees to success. As part of that, we provide a clearly written and comprehensive employee handbook.
But where do you start? Here’s a six-step process to follow when creating your own employee handbook:
1. Describe your business and the purpose of the handbook
Introduce your business and explain why the handbook is important. Please take the time to share a brief history of your company, your business philosophy, and the culture you’ve worked to create.
For example, let’s say you run a small cafe chain. You can share stories about when and why you opened your first cafe, and how your business has grown and evolved since then.
Also, let new teams know that this handbook is not just for onboarding and training. It also serves as a valuable resource that you can use to find answers to your questions about vacations, policies, and entitlements.
2. Provide all legal information
Including information about paid leave, non-discrimination policies, and worker compensation in employee handbooks is not only legally required. It also shows your commitment to your employees.
Paid and sick leave policies vary by state, so be sure to include the state-specific laws that apply to your business. Also, if your business is subject to the Family Medical Leave Act (FMLA), you must provide employees with serious health conditions or family members with serious health conditions 12 weeks of unpaid leave per calendar year. . .
Homebase has a team of HR professionals available to answer all your employee handbook questions.
Along with state-specific anti-discrimination laws, an anti-discrimination policy should also be included in the handbook. Not only is this legally required, it also helps create a safe and inclusive environment for your team.
Workers Compensation Insurance is a type of insurance paid by employers to protect employees in the event of work-related injury or illness. The handbook should clearly outline the worker’s compensation policy outlined in state and federal law and how employees can file claims when required.
3. Establish clear guidelines for compensation, working hours, and vacation
Let’s dive into the most important part of the employee handbook: the section that employees refer to frequently.
time tracking, attendance, vacation
Whether you work full-time or part-time, you need to explain to your employees how they are tracking their time. Also, one shift and how many hours per week is he expected to work?
You should also outline your overtime policy. This includes employees who are exempt from overtime and those who are not.
It’s also important to discuss attendance guidelines and tardiness policies. Outline how many unexplained absences are allowed before disciplinary action or termination occurs.
You should also provide details about your vacation policy. Make sure your employees know how to submit requests. If you have different policies for sick leave and vacation hours, be sure to categorize each type of process.
home base offer Live HR guidance So there is no need to get lost or confused about compliance issues. You’ll also be notified when laws change at the state or federal level, so you can be sure you’re always following regulations.
compensation
This section should explain how the pay structure works for each type of employee. If you offer bonuses, explain how team members will earn them and how they will be distributed.
Inform staff that your taxes are deductible based on federal and state rates, and that you have other applicable deductions such as health insurance and 401(k)s.don’t forget to include Salary This allows employees to know when and how often they will be paid.
employee benefits
If you offer benefits such as health insurance or a pension fund, be sure to explain who your employees are and how they can enroll.
Part-time employees may not be eligible for benefits packages, so be sure to provide a list of required documents for registration.
If your business offers benefits, you should mention them.Benefits include flexible working schedule Or child support. It also includes access to education, wellness programs, Health Savings Accounts (HSAs) or Flexible Savings Accounts (FSAs).
Other perks include student loan assistance, dedicated time off for volunteer work, career development opportunities, and employee discounts and rewards.
Safety practices and protocols
Every business has its own safety concerns. Regardless, there are some common practices that should be included in your safety guide. First, it’s important to have a clear drug and alcohol policy to keep your workplace safe.
Clarify that employees are not permitted to use recreational drugs while on the job, even if they operate in a state where recreational drugs are legal.
The safety guide should also explain how employees maintain a safe work environment. And how to comply with Occupational Safety and Health Administration (OSHA) standards.
This may require additional training or certification. So make sure your employees have access to the resources they need to complete these requirements.
It’s also important to have clear policies against sexual, verbal, bullying, and other forms of harassment. Define what harassment looks like and the consequences of violating the policy.
In addition, the law requires employers to establish complaints procedures for harassment. Make sure employees understand how to report harassment and provide a step-by-step protocol to follow.
Also consider adding information about your state’s anti-harassment training requirements. If your state requires it, please include instructions on how to complete those programs.
5. Establish expectations at work
It is important to clearly outline expectations for employee behavior while on duty. The handbook should contain policies and procedures related to work schedules.
It should also include workplace behaviors such as punctuality, dress code, breaks, language use, team collaboration and customer service.
Explain the reasons behind your policies and relate them to your company’s values. This will help create the type of company culture you want.
The handbook should also detail the disciplinary process for employees who do not follow the policy. Use clear and straightforward language to explain how the disciplinary process works. Also include the number of warnings the employee receives before termination becomes an option.
It’s okay to use a generic example situation to illustrate how the disciplinary process works. However, avoid providing too much detail or referring to real events. Being too specific can create unintended loopholes that employees can exploit.
For example, restaurant staff may be misled when you say that working 24 hours a day is illegal.This may cause them to stay attendance at work At work after the shift. This allows you to work more overtime without notifying you or your boss.
6. Provide a disclaimer that policies are subject to change
After the new team member has read the employee handbook, have them sign a form acknowledging their understanding.
Remember to add a disclaimer to clarify that the handbook is not a binding employment contract.
It is also important to include Company policy This may change in the future. Please note that there may be actions or rules that apply to conduct that are not expressly stated in the current handbook.
This allows you to maintain some control and flexibility when unforeseen circumstances arise.
