How a Handbook Can Save You From an HR Headache

By Maria S. Hossain, Of Counsel, Ausley McMullen

We all know what it’s like when you start a new job. You show up to work, a nameless human resources (HR) person shoves a big pile of papers in front of you, and you sign more things than you would if you were buying a house.

But is any of that even worthwhile?

The truth is that providing an up-to-date Employee Handbook to your employees on their first day (and updated copies annually thereafter) helps you, as the employer, and your employees. Handbooks set expectations for job duties, lay out frameworks for HR processes (such as absenteeism, dress code, overtime and bonus structures), and inform employees where to go with complaints. Having guidelines for discipline, Family and Medical Leave Act (FMLA) usage, and accommodations (disability, pregnancy and religious) helps ensure that employers have a structure to refer to in order to treat employees equally and that serves as support in fighting any future claims of disparate treatment that may arise in litigation.

What about a small dental practice with just one doctor and nine staff members? Would they need an employee handbook? While the size of the business exempts the practice from employment litigation claims of disparate treatment under Title VII or under the Florida Civil Rights Act, as well as exempts the business form being required to comply with Americans with Disabilities Act (ADA), Pregnant Workers Fairness Act (PWFA) and FMLA, employers may still be liable for suits brought under Federal Labor Standards Act (FLSA), the Florida Whistleblower’s Protection Act and employment-related torts. Regardless of the size of the office, having an Employee Handbook and using it judiciously is a solid business practice which could help to prevent future expensive litigation.

Keep in mind that as your number of employees fluctuates (for example, with part-time staff, kids working at the office or seasonal paid interns), even adding one person to your staff could open you up to liability under various federal or state laws, which each have different thresholds for the number of employees that would make the laws applicable. Additionally, miscategorizing an employee as a contractor could also lead to costly litigation. That is why it is important to have an employment attorney review your Employee Handbook annually to ensure it remains compliant for your office’s size. Employees should also review the handbook annually and sign a form indicating that they are familiar with any changes made.

While no business likes to spend money if they don’t have to, hiring an employment attorney to draft an Employee Handbook specific to your business needs is the equivalent of having insurance. No one enjoys spending money monthly on insurance, but if you ever get sued, making sure that your HR procedures are legally sufficient will have been a small and worthwhile investment compared to the literal millions that you would otherwise have to spend defending an employment lawsuit.