Many small companies utilize complex and bloated handbooks that can cause confusion or legal disputes. Small businesses should not use "form handbooks" intended for large companies or companies located in another state. As one example, businesses should not have a "family and medical leave act" (FMLA) policy unless they have fifty (50) or more workers. Similarly, very small companies with under fifteen (15) employees should not discuss the Americans with Disabilities Act (ADA). Massachusetts has its own anti-discrimination laws that apply to employers of six (6) or more. These are a couple examples of the perils of "one-size-fits-all" handbooks. Companies that utilize handbooks must first determine which state and federal laws affect their workplace.
Many companies fail to update older handbooks. If your handbook is not updated regularly, it may not reflect recent changes to Massachusetts and/or federal laws. For example, Massachusetts companies should no longer have a "maternity leave" policy only, as both mothers and fathers are eligible for parental leave at most companies. As another example, Massachusetts has a mandatory sick leave law, but only companies with eleven (11) or more employees must offer paid leave.
Finally, most handbooks correctly emphasize that employment is "at will," but some handbooks mistakenly include policies that imply contractual rights. For example, if you require employees to provide two weeks' or one month's notice, you could owe "notice pay" to terminated employees. Similarly, if your policies provide for appeals or mediation of personnel decisions, this can create contractual rights that are ordinarily unavailable.
Please contact us anytime to review if your employment policies and/or handbook are current and appropriate for your business.