Even one discrimination lawsuit or employment claim can cost your organization (on average) $160,000 to defend through settlement. With well over 60,000 Equal Employment Opportunity Commission (EEOC) discrimination charges filed each year, it’s imperative for organizations to take protective measures to remain compliant and avoid hefty legal costs and reputational damage.
A comprehensive, up-to-date and legally compliant employee handbook can work as a major safeguard against litigation. An employee handbook not only communicates an organization’s mission, vision, and values, but also consolidates and articulates its key policies, expectations, disciplinary procedures, and the legal rights of employees (and the employer). Our recent article offers actionable tips for developing your first employee handbook. Here, we’ll explore how employee handbooks help you avoid legal headaches, and which common mistakes you should avoid to remain legally protected.
Beyond highlighting an organization’s core values, and promoting the robust benefits and perks available to employees, the employee handbook must also serve a set of practical functions for the employer and employee. Fundamentally, the employee handbook ensures that all employees have equal and transparent access to the same organizational guidance, especially as it relates to policies, procedures, and expectations. This includes articulating the consequences of knowingly violating company policies or failing to meet agreed-upon expectations.
With this in mind, your employee handbook should include the following sections to provide legal protections:
In addition to including the sections we’ve just outlined, it’s also essential to avoid common compliance-related mistakes when drafting your first handbook (or updating an existing one). In each case, these issues are avoidable with the help of qualified HR experts who remain up-to-date on federal, state, and local policies that are applicable to your organization or industry.
Our related article, “Overlooked Employee Handbook Policies – Consider Adding or Updating,” offers additional suggestions on how to embed legal protections in your employee handbook.
Cello HR can help you develop an employee handbook that keeps your organization legally protected while showcasing policies and benefits that support employee well-being. As part of this process, we offer HCM technology to streamline and integrate your hiring, onboarding, scheduling, payroll, time and attendance, and more, into a single consolidated platform. Along the way, our HR consulting and labor law poster printing services ensure that your organization remains strategically on track and up-to-date on all labor law changes that could affect your industry.
Ready to create an employee handbook that protects your organization and optimizes onboarding? Contact us today to start our collaboration.