Five Common Employment Law Mistakes to Avoid in 2024 (Part Five)
This is the fifth and final part in our weekly series on Five Common Employment Law Mistakes, in which we discuss common pitfalls that employers encounter, and provide suggestions on how to avoid these mistakes. In this five-part weekly series, we are discussing the following topics:
This week, we are discussing the importance of having an up-to-date employee handbook and having HR staff who administer the policies in a consistent manner.
Failing to Update the Employee Handbook
The final common pitfall that we often see employers encounter is failing to update their employee handbook, often for several years. This is a risky position to be in, given that California’s employment law landscape changes frequently, and having out-of-date or missing policies exposes the employer to a variety of claims. In addition, a well-drafted and up-to-date employee handbook can serve as a risk-management tool by addressing potential legal issues before they arise. Clear policies on harassment prevention, non-discrimination, and other workplace issues can help mitigate the risk of lawsuits and regulatory violations and set the tone for an employer who has a zero-tolerance policy for bad behavior.
In addition to having current, up-date-policies, it is equally imperative that the HR staff who administer the policies know them inside and out and follow them consistently. We often hear from clients that they have a written policy addressing the subject at hand, but they have not followed the policy or they have applied it in an inconsistent manner across different employees or departments. This too, is a risky position to be in, because it exposes the company to claims of discrimination or unequal treatment (as was discussed in Part 3 of this series regarding treating similarly situated employees in the same manner). In such a case, you are arguably better off not having the policy at all then having it and not enforcing it or enforcing it unfairly.
We strongly recommend that employers update their employee handbook at least once per year. Employers can also update their handbook more frequently—as new laws become effective—by adding an updated or new policy piecemeal to the handbook. Whenever an employee handbook is updated, the newest version should be distributed to all employees, and the staff responsible for the administering the policies should ensure that they understand and can implement the policies in a uniform and consistent manner. Ideally, the employer will also ask for a new employee signature, particularly on new or key former policies.
Updating the employee handbook annually has the added benefit of giving the employer a natural time of year to introduce new things, such as arbitration clauses or the reclassification of a subset of employees as non-exempt, without drawing extra attention to why the changes were made or causing employees to wonder if the employer has been doing something wrong.
We hope this five-part series about key employment law mistakes to avoid has been helpful. By avoiding these common pitfalls, employers can create a more transparent and legally compliant workplace. Maier Law Group can assist with navigating these common pitfalls and proactively creating a healthy and effective workplace.
Read the rest of the series here:
Part One: Misclassifying Employees and Contractors
Part Two: Poorly Managing and Documenting Employee Performance Concerns
Part Three: Treating Similarly-Situated Employees Differently
Part Four: Neglecting to Engage in the Interactive Process
Part Five: Failing to Update the Employee Handbook
Author: Emily Harrington, Associate.
This article has been prepared for general informational purposes only and does not constitute advertising, solicitation, or legal advice. If you have questions about a particular matter, please contact the Maier Law Group directly.