For a business owner, an employee handbook is a cornerstone of a strong business foundation. A good handbook can clarify expectations, protect your company, and foster a positive workplace. But where do you start with this undertaking? I am here to guide you on how to create an employee handbook.
For a free consultation with an experienced NYC small business lawyer, please reach out to me today.
How to Write an Employee Handbook
Many small business owners struggle with the balance between legal compliance, setting reasonable expectations in the workplace, and clear communication. The purpose of an employee handbook is to bridge these gaps.
Your employee handbook should make clear to each employee what you expect from them and what they should expect from you. Your handbook should also give employees resources to help them be effective at work and protect your interests. Below, I review the main subjects you may want to include in your small business employee handbook.
Wage Payment Information
People may come to work to fulfill a passion or keep themselves busy, but they also come to work to get paid. Many employment disputes can come from disagreements about payment, so including information about wages can cut down on confusion about earnings between you and an employee and might prevent a dispute.
Information you may want to put in your handbook includes:
- Your payment schedule. Employers must pay their employees regularly and on time. Including a payment schedule in your handbook can ensure employees know when to expect payment and prevent them from erroneously complaining about late payments.
- Direct deposit information. Using direct deposits to pay wages can help you make timely wage payments and save costs, but you must receive written employee permission. Letting employees know how to enroll in your direct deposit program might encourage them to consent to this form of payment.
- Information for in-house complaints. When an employee submits a wage complaint to the government, the outcome can be time-consuming and expensive for you. But identifying a contact person who can resolve wage disputes in-house may minimize potential legal issues and save everyone time and money.
Providing clear rules and procedures for ensuring your employees get paid can eliminate a lot of grief in the workplace.
Work Hours and Break Rules
New York law has specific rules for how long an employee’s workday should last and what types of breaks they should receive. The law also requires certain employees to receive at least one day off out of seven consecutive days and a meal break that lasts between 30 minutes and 1 hour depending on how many hours were worked.
Employers must pay hourly employees overtime if they work more than 40 hours in a week. The overtime compensation rate is 1.5 times the employee’s regular rate or pay. Many salaried employees are not entitled to overtime. Under state and federal laws, a salaried employee might be exempt from overtime if they hold the following type of job:
- A government position,
- An executive job,
- A professional position, or
- An administrative position.
Also, foremen, certain employees in production or shipping, some seasonal workers, and certain individuals in hospitality work have limited rights regarding days off.
Clearly communicated rules about breaks and days off can boost employee morale, help with workday endurance, and produce a healthier and happier workplace. Outlining these rules in a handbook can also set expectations that keep employees punctual and accountable.
Paid Family Leave and the Federal Family and Medical Leave Act
New York State has Paid Family Leave (PFL), which helps employees take time off for family reasons, including bonding with a new child, caring for a sick family member, or tending to military family needs.
Employers must tell employees about this law, so it should be part of your employee handbook.
Small businesses should give information about:
- The name of the employer’s PFL insurance carrier,
- Instructions on how to ask for PFL,
- The employee’s responsibility to cover their health insurance premiums while on leave,
- Information on whether the employer will cover some or all of the employee’s PFL premiums, and
- Whether employees can use accrued time to supplement PFL benefits.
During leave, the employee can receive a percentage of their average weekly wage, and their employer must reinstate them to their job (or a similar job) when they return. Full-time and part-time employees who have worked for approximately six months are eligible for these benefits. Including this information in your handbook can help ensure your PFL processes run smoothly.
PFL does not cover an employee if they are handling their own serious health condition. However, employees can seek leave for personal health issues through the federal Family and Medical Leave Act (FMLA). The FMLA allows employees to take up to 12 weeks of unpaid job-protected leave to bond with new children, handle illnesses, or attend military matters. Once again, informing an employee about their FMLA rights and how to notify you about a need for leave can help you better administer your FMLA process.
Safety Rules
Workplace injuries can be devastating for employees and disheartening and costly for employers. Each employer should assess the risk of employee injuries and develop safety rules in their handbook. Letting employees know the rules and what protective devices are available can prevent harmful accidents.
Workers’ Compensation Rules
If your employees get hurt at work, they likely have a right to workers’ compensation benefits from you.
These benefits include:
- Reasonable healthcare from an authorized provider and medical devices to cure or alleviate an employee’s symptoms, and
- Partial wage replacement if the employee’s injury diminishes their earning capacity.
In your handbook, you will likely want to include this information and instructions on how an employee can notify you about an injury and select a healthcare provider.
Sexual Harassment Resources
Sexual harassment in the workplace is a serious problem. New York law requires employers to develop policies and training programs to prevent and address sexual harassment. Your handbook should include your policy and training resources. Including your policies and training information can help you keep your workplace safe. Also, an employee’s failure to use any known sexual harassment procedures you have in place may diminish your liability for harassment committed by a non-supervisor employee or third party.
Grievance Procedures
New York and federal laws also forbid discrimination or harassment in the workplace based on a number of protected characteristics. These include, but are not limited to:
- Religion,
- Sex,
- Race,
- Military status,
- Age (40 or older)
- Nationality,
- Status as a domestic violence survivor,
- Medical condition,
- Gender,
- Disability,
- Creed,
- Genetic characteristics, or
- Marital status.
You should have grievance procedures and a neutral contact person to handle discrimination complaints in-house. Communicating these procedures can help you resolve the issue before it escalates to an administrative complaint or civil lawsuit.
Disclaimer
Employment in New York is at will unless an employment contract states otherwise. Employers can fire employees without a contract for no reason or any reason that is not illegal. Because employment contracts can be implied in New York, you want to ensure the language in your handbook does not create a contract you don’t want. We can help you write a comprehensive handbook that does not create unnecessary obligations.
Take Control of Your Workplace with Us
Contact D’Andrea Law PLLC for personalized legal advice on how to create an employee handbook that suits your business. With more than a decade of experience, I am here to help you build a thriving and legally sound business. You can contact me online to schedule a free consultation.
Resource List
- The Laws of New York, Chapter 31, §191, link.
- The Laws of New York, Chapter 31, §192, link.
- The Laws of New York, Chapter 31, §161, link.
- The Laws of New York, Chapter 31, §162, link.
- New York State Division of Labor Standards, Guidelines for Meal Periods, link.
- New York State Department of Labor, Overtime Frequently Asked Questions (FAQ), link.
- New York State, Paid Family Leave: Model Language for Employee Materials, link.
- U.S. Department of Labor, Wage and Hour Division, Family and Medical Leave Act, link.
- The Laws of New York, Chapter 67, §13, link.
- The Laws of New York, Chapter 67, §10, link.
- The Laws of New York, Chapter 67, §110, link.
- The Laws of New York, Chapter 67, §13-A, link.
- The Laws of New York, Chapter 31, §201-G, link.
- U.S. Equal Employment Opportunity Commission, Harassment, link.
- New York Equal Employment Practices Commission, State Laws: New York State Human Rights Law, link.
- New York State Department of Labor, Wages and Hours Frequently Asked Questions, link.
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