23 Oct Human Resources
Employee Handbook:
According to the US Small Business Administration (www.sba.gov)
“An employee handbook is an important communication tool between you and your employees. A well-written handbook sets forth your expectations for your employees, and describes what they can expect from your company. It also should describe your legal obligations as an employer, and your employees’ rights. This guide will help you write an employee handbook, which typically includes the topics below. “
The employee handbook should be written with their individual needs in mind but also in accordance with the local, state and federal laws. Since this document is clearly of imminent importance every company should look to make sure that they cover all the necessary subjects. Below this the Small Business Association’s list of major topics that should be included in the employee handbook:
- Non-Disclosure Agreements (NDAs) and Conflict of Interest
- Anti-Discrimination Policies Statements
- Compensation
- Work Schedules
- Standards of Conduct
- General Employment Information
- Safety and Security
- Computers and Technology
- Media Relations
- Employee Benefits
- Leave Policies
Sample Employee Handbooks for reference:
http://www.nfib.com/documents/pdf/faststart/model-employee-handbook.pdf
http://www.shrm.org/templatestools/samples/pages/employeehandbook.aspx
http://humanresources.about.com/od/handbookspolicies/a/sample_handbook.htm
Human Resources Policies & Procedures
Employee policies and procedures should be developed in such a way that it encompasses the individual workplace needs but they also need to follow the local, state and federal laws. Each workplace is different and therefore their policies should reflect the company’s size, employee needs and company philosophy. When writing their policies and procedures handbook a company should hire a lawyer who is familiar with state labor and employment laws to review their handbook for legal accuracy and compliance. According to CFS, Creative Financial Staffing, the continuation of using outdated policies is a common error that many companies make. Policies should be reviewed every year to ensure they are compliant with current laws.
According to BLR, a business and legal resources consulting firm…
“Employers should exercise caution when developing handbooks and related policy statements. To avoid implied contract claims, employers should issue only general statements of policy in employee handbooks and should always include an explicit statement reserving the right to alter, amend, or change any handbook policy at any time and for any reason.
North Carolina is an “employment-at-will” state. Therefore, an employer may generally terminate an employment relationship at any time and for any reason. (Caution: A collective bargaining agreement, employment contract, existing law, or recognized public policy may place further limitations on an employer’s right to summarily terminate an otherwise at-will relationship.) ”
One of the biggest policy decisions of small businesses is determining if someone is a contract hire or an employee. It is helpful to think about each person you meet and determine who has control over their work. Ultimately, you will need to refer to the IRS guidelines to help narrow down your decision.
The IRS uses three characteristics to determine the relationship between businesses and workers:
- Behavioral Control covers facts that show whether the business has a right to direct or control how the work is done through instructions, training or other means.
- Financial Control covers facts that show whether the business has a right to direct or control the financial and business aspects of the worker’s job.
- Type of Relationship factor relates to how the workers and the business owner perceive their relationship.
Human Resources Reference Materials:
North Carolina Office of State Human Resources
http://www.oshr.nc.gov/
Handout on the North Carolina’s Top 10 Employment Laws: http://nr.nlh1.com/downloadablePremiums/NC10MostCr.pdf
North Carolina Department of Labor:
BLR information on North Carolina hiring laws
http://www.blr.com/HR-Employment/Staffing-Training-/Hiring-in-North-Carolina
CFS Handbook tips – The good, bad and critical policies
Small Business Association Guide
http://www.sba.gov/sites/default/files/files/resourceguide_3127.pdf
Internal Revenue Services
http://www.irs.gov/uac/Newsroom/Tax-Tips-if-You-Are-Starting-a-Business
Mitch McDowell
Posted at 14:56h, 28 OctoberAlicia,
I couple of years ago, I interviewed the field compliance officer for the IRS. I asked him, “what are the main two things that get small businesses into trouble?”
He said the number-one event was violating the independent contractor vs employee guidelines. Number-two was not correctly processing payroll withholding.
Thanks,
Mitch
asmcpa@yahoo.com
Posted at 16:41h, 28 OctoberMitch, great quote from the IRS. I have NO doubt about those too being high liability areas.
Maria-Elena Surprenant
Posted at 22:49h, 29 OctoberGreat post-I sometimes wonder how many businesses around the area I live are using outdated employee handbooks, let alone in the nation. This is truly eye opening. Also, I never realized that “one of the biggest policy decisions of small businesses is determining if someone is a contract hire or an employee.” The above resources are a great place to reference and look into this. Thanks for sharing!
Maria-Elena
asmcpa@yahoo.com
Posted at 16:58h, 30 OctoberI feel sure that many companies don’t have updated emplyee handbooks. One of my employers never had one at all.
Adam Renkiewicz
Posted at 12:10h, 03 DecemberThis is a very informative piece because it doesn’t just speak to corporations, it speaks to small businesses. No matter how many people you employ there needs to be guidance on what you expect from them. In the military they have standard operation procedures and the corporate world has the same idea, because it entails conduct that is expected.
asmcpa@yahoo.com
Posted at 21:15h, 03 DecemberThe clearer we communicate the better!
Alicia