UPSIZE PRIMER :: EMPLOYMENT LAW
What's your policy?
Clear rules, communicated well, can protect small employers
by Carla Solberg
A SCAN OF RECENT, headlines shows that legal challenges in the workplace are becoming more common and more diverse.
Workers compensation, sexual harassment and discrimination based on age, race or gender are still among the most common complaints. But newer issues including claims regarding Internet usage and dress code violations have emerged in the minefield that is employment law.
Do dress codes banning dreadlocks or head scarves violate religious freedom? Are employees? e-mails private? Can forwarded joke e-mails be more than just irritating?
Sorting it all out while trying to run a small company can seem overwhelming. But it doesn?t have to be. Experts say simple preventative measures ? such as good hiring practices, training and well-crafted employee handbooks ? can go a long way toward reducing the risk that HR problems will turn into messy, expensive lawsuits.
Handbook a must
Every company with more than a handful of employees should have an employee handbook, says Mark Gleeman, shareholder with the Minneapolis law firm Winthrop & Weinstine. ?It?s a good place to put all of your policies and it lets people know the basic ground rules you?re working under.?
The handbook should cover the basics, listing all benefits offered, such as health insurance, 401(k), tuition reimbursement and health savings accounts, and a brief description of each, says Gleeman. It should outline all policies including vacation, time off, paid holidays, premium pay for certain shifts, travel reimbursement, dress code and Internet usage.
All handbooks should include an anti-harassment and anti-discrimination policy including information on what to do if there is an incident and who should be notified, he says.
An Internet and e-mail policy is a must at any company where employees have access to the Internet, Gleeman says. While it can be a great tool in the workplace, the Internet can also be the source of a lot of problems.
?People should think twice before they send jokes or racy pictures or forwarding e-mails. Some of that stuff can get kind of offensive,? says Gleeman. What some people view as a joke might be construed as harassing or discriminatory behavior by others. ?I?ve seen people get fired over it.?
And it?s not just the originator of the e-mail who risks disciplinary action. ?I?ve seen employees get in trouble for forwarding things on to their friends,? he says. Many employees assume their work e-mail is private, but it?s not.
?The e-mail system belongs to the employer,? says Gleeman. And employers have the right to monitor it. That should be clearly stated in the e-mail policy section of the handbook.
Every employee should receive a copy of the handbook, says Gleeman. ?Have employees sign a receipt acknowledging they received it and that they agree to it and that it is their responsibility to read it.?
Any time there is a problem or a lawsuit the questions that will come up are: ?What?s your policy? Where does it say that? And how was that communicated?? he says.
Communication is key
A recent growth spurt at Lake Area Bank has highlighted the importance of communication with all employees. In December, Lake Area added a loan production office and 14 employees to its staff. Another 14 employees will come aboard when a deal to acquire the Minnesota assets of S&C Bank of New Richmond, Wisconsin, closes February 15. That deal includes branches in Stillwater, Almelund and Harris, and an undeveloped site in Cottage Grove.
Chartered in Lindstrom in 1915, Lake Area Bank is a family-owned community bank with a philosophy that its purpose is ?to make a difference,? says Marc Campbell, president and COO.
?Part of the reason I decided this mortgage business was a good idea is because it fits so well with that. A big part of the banking relationship is mortgage and home ownership and what that stands for,? he says.
What Campbell didn?t realize was how differently community bankers and mortgage brokers approach their work. Brokers on the go with laptops caused a considerable amount of angst for community bankers, who place a premium on privacy.
And then there?s the Internet. ?Our IT people quickly discovered that they weren?t used to operating the way we were,? says Campbell. Certain downloads and personal e-mails with attachments can carry viruses that put customer and company data at risk, he says.
Part of being an effective manager is giving employees feedback on what they?re doing right or wrong, says Campbell. A growth spurt can be a great reminder of the importance of good communication.
?We have policies and procedures that are required,? says Campbell. The bank outlines what they are and why they exist with all new hires at all branches and it?s in the handbook, he says.
?You can go on the Internet and find a handbook, but we don?t recommend that,? says Mark Mathison, shareholder and labor and employment attorney with the Minneapolis law firm Gray Plant Mooty. ?That?s a good way to g