Businesses are always searching for new ways to reduce liability and insulate themselves from risk, but one of the easiest and least expensive tools is often the one most frequently overlooked. Creating, promulgating, and most importantly enforcing an employee handbook is a simple and efficient way to communicate company policy and expectations to your employees and at the same time reduce your overall liability. A properly drafted and properly updated employee handbook is a multifaceted tool which comes in handy in a number of circumstances, some of which we will dive into here.
The Value of Well-Drafted Handbooks
The first circumstance we’ll discuss is one many employers will face despite their best efforts, because, as the old adage goes, anything that can go wrong will go wrong. Even the most careful and thoughtful employers get sued. Employment discrimination claims are free to file at most federal, state and local agencies, and there are almost no hurdles for disgruntled former employees who want to bring claims against their former employer. This is where a well-drafted and enforced employee handbook comes into play. One of the first things that many agencies, whether it be a FEPA [1] or department of labor, will seek is your employee handbook. While a handbook may not be required under any law, many agencies will look unfavorably upon an employer that does not have one. This is because a handbook is not only a tool to protect your company, but also a clearly...
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