4 minute read
Are Employee Handbooks Still Relevant?
By Jeff Farnsworth, CAMEx, CCAM-PM.ND
I recently received feedback from an employee regarding a process outlined in our company’s employee handbook. Despite the handbook being periodically revised and distributed over the past 33 years, this was the first instance I knew of where an employee had referenced it. Upon investigation, it was discovered that a recent revision to the handbook, made approximately 10 months ago, contained a well-defined process regarding calculating paid time off (PTO), which our payroll company was not adhering. Rectifying this oversight incurred costs for legal consultation and extensive communication with our payroll vendor to adjust PTO calculations for all hourly employees retroactively. Without the employee’s diligence in flagging this issue, our company could have been exposed to significant compliance risks and a misrepresentation of our commitment to employee welfare, potentially leading to legal consequences.
What are some reasons why employee handbooks are not only relevant but also critical to a management company’s success? Let’s explore:
Lack of HR and Legal Resources
Many organizations, particularly those in common interest management, may lack the resources for dedicated human resources teams or legal oversight of employment practices. Even larger companies often face challenges prioritizing such expenses over more immediate needs. Nevertheless, maintaining an up-to-date employee handbook is not just a necessity but a strategic move that can bring significant benefits. It serves as a valuable reference tool during challenging situations, helping to prevent potential violations of fair employment practices, and fostering a positive work environment.
California’s employment laws are complex and evolving, underscoring the necessity of a comprehensive handbook that aligns with state-specific regulations, such as wage and hour laws, anti-discrimination policies, anti-harassment policies, and leave entitlements. Beyond being a resource for employees, supervisors, and company owners, regular legal review of the handbook ensures compliance and protection for the entire organization.
The Rise of Remote Work
The rise of remote work further necessitates handbook revisions to clarify job duties, workplace definitions, telecommuting benefits, and associated risks. Failure to define boundaries may lead to frustration and unintended legal exposure. A well-crafted handbook establishes policies and procedures and reflects organizational values, fostering a positive workplace culture and hopefully reducing grievances. The Department of Labor encourages employers with hybrid remote work options to use electronic postings for their remote workers. If 100% of your employees work remotely, electronic postings are required so that employees can be aware of their rights. This may be done using scheduled email blasts or hosting up-to-date disclosures on an intranet site like Microsoft’s SharePoint or Delve.
California’s employment laws are complex and evolving, underscoring the necessity of a comprehensive handbook that aligns with state specific regulations, such as wage and hour laws, anti-discrimination policies, anti-harassment policies, and leave entitlements. Beyond being a resource for employees, supervisors, and company owners, regular legal review of the handbook ensures compliance and protection for the entire organization.
Third-Party Exposure
Another layer to consider is third-party exposure. As community managers, we are responsible for educating our clients on their role as an employer and the importance of maintaining employee handbooks if they employ staff members. Failure to provide adequate protections and benefits to employees, such as sick time, can result in legal repercussions for both the association and its management company. Simply by assisting our boards with managing their payroll services, the managing agent may be perceived as a secondary employer and unknowingly exposed to increased risk. Many of our boards do not realize they are responsible for posting mandatory labor law posters on-site where their employees can reasonably access this information. Most associations do not enlist the services of an attorney who specializes in employment law. As budget season approaches, these are great conversations to have with your clients who have employees. By ensuring clear communication and legal compliance, we mitigate risks and support a positive work environment for all parties involved.
The Manager’s Role
As managers, we have a crucial role in supporting our boards in fulfilling their HR responsibilities and promoting work-life balance through clear guidelines and policies. By prioritizing the creation and maintenance of employee handbooks, we uphold legal compliance and foster a positive work environment. Now more than ever, having an employee handbook is a crucial part of running a successful business, and common interest developments are no exception. Our active involvement in this process is key to its success.
