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February 2006 — Vol. 84, No. 1

SMALL BUSINESS

The what, when and why of

Keeping employees informed

Be sure to convey legally required as well as ‘good to know’ information

By Debra Susca

Freelance writer in Portland

When it comes to communicating with employees, there are “must tell” and “good to tell” pieces of information you should convey.

Certain information is legally required to be given to employees in writing or posted in the workplace. Beyond that, a company’s policies and procedures ideally should be written down in an employee handbook, even though no law requires it. Other kinds of information help orient newly hired employees to the company and outlines their role in it and the company’s strategic vision.

‘Must tell’ information

Under state and federal laws, all employers must give the following important notices in writing to newly hired people:

  • Wage and benefits notice — describes the employee’s rate of pay and hours of employment, the company’s pay schedule, and any benefits the employee will receive, such as vacation time and medical benefits. This should be given at the time of hire.
  • I-9 Form — verifies someone’s eligibility for employment in the United States, as well as their identity. This federal form is intended to prevent employment of people who are not legally authorized to work in this country.
  • COBRA notice — outlines the federal law that entitles an individual to purchase continuing health insurance coverage when they lose coverage because of certain “qualifying events,” such as termination of employment or a reduction in their hours to part-time status. This notice should be given at the time coverage begins.

Legally required communications also include information that must be posted in a common area where employees can read it. Posting requirements depend on the type and size of business.

“For instance, information on minimum wage and overtime is required to be posted in companies of any size,” says Mark Soycher, CBIA counsel and director of human resources services. Other posting requirements, though, apply only to certain types of companies. For example, “The federal Equal Employment Opportunity poster must be posted in any company with 15 or more employees, while a state nondiscrimination and sexual harassment poster must be used in companies with just three or more employees,” Soycher says.

The Human Resources & Safety area at cbia.com includes a chart summarizing the posting requirements. You can obtain individual posters from various state and federal agencies. For convenience, you may prefer to purchase CBIA’s Poster Compliance Kit, which contains all legally required posters.

‘Good to tell’: policies and procedures, preferably in a handbook

Although not required to by law, a smart employer will give newly hired employees an “at-will disclaimer” notice, either separately or in an employee handbook, say CBIA’s experts. The disclaimer protects the employer by establishing that there is no contract guaranteeing employment for any particular amount of time.

It’s also wise, but not mandated, for a company’s policies and procedures to be written down in an employee handbook.

“The biggest communication problem I see, especially with smaller companies that don’t have a human resources person, is that they don’t commit to paper the policies and procedures of their organizations,” says attorney Lynn Atkinson, a CBIA employment specialist. Without written policies and procedures, she says, employees seeking direction may get differing information from supervisors who themselves aren’t clear on company policy. “It leads to confusion and disgruntlement.” That, in turn, can result in a discrimination claim or lawsuit.

She advises, “Get a basic handbook in place. It helps reduce disputes, promotes consistent management and demonstrates a commitment to equal treatment of employees.” Besides being good for morale, showing a commitment to equal treatment can help an employer if a dispute ever does wind up in court.

An employee handbook can also satisfy some of the legal requirements for information to be in writing, Atkinson notes. “For instance, an employee handbook is a good place to meet the requirement to give employees benefits information in writing,” she says. “A handbook is a good place to put information that employees need to know and that also protects the company.”

According to Atkinson, a handbook should include such topics as:

  • equal employment opportunity
  • the company’s antiharassment policy, including for sexual harassment
  • categories of employment, defining full time, part time, temporary or seasonal worker
  • hours of work and attendance
  • overtime and benefits information
  • company holidays, vacation, sick time and leave policies
  • military leave and veteran reinstatement rights
  • drug and alcohol abuse policy
  • dress code
  • e-mail, voice mail and Internet usage
  • workplace violence

Also good to do: employee orientation

An employee handbook is a big help, agrees Soycher. So is an orientation program for new hires. Besides covering the critical information new employees need to know, an orientation program should help them understand how they fit within their department and how their department fits into the organization’s strategic plan, Soycher says.

Orientation steps should include such things as introducing the new person to their work group; giving them a tour of the facility, including restrooms, cafeteria, coffee area, etc.; introducing them to the organization and its products as well as their department; assigning them a mentor; and any training needed.

Soycher advises using an orientation checklist, such as the state Department of Labor’s sample list, available on CBIA’s Web site.

“All of these things — the employee handbook, supervisor’s checklist, notices and posted regulations — are the kinds of information employers want to convey to employees,” says Soycher. “They not only protect the employer’s and the employee’s rights but also help integrate new employees into the workplace so they become productive workers.”

 

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