Employee Handbook Considerations JULY 14, 2015 GALLAGHER / NASHVILLE BRANCH HUMAN RESOURCES AND COMPENSATION CONSULTING PRACTICE

Who We Are • Founded in 1927 • 16,500 employees • Operations in 24 countries and client service capabilities in more than 140 • Recognized three years in a row by • Ethisphere Institute recently named us as one of the worlds most ethical companies for the 3rd year in a row

Employee Benefits & Human Resources Division • 2,200 employees • Over 170 offices

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Total Rewards Expertise

Executive Benefits

Health & Welfare

Healthcare Analytics

Human Resources & Compensation

Institutional Investment & Fiduciary Services

Multinational Benefits & HR

Retirement Plan

Voluntary Benefits

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Agenda • Handbook Purpose • Key Sections • Compliance Considerations • Tips/Best Practices • Thoughts on Communication and Training • Questions ARTHUR J. GALLAGHER & CO. | BUSINESS WITHOUT BARRIERS™

Why Have a Handbook? • Communication Tool – Explains applicable laws – Orients new employees – Answers on-going questions

• Consistency – Protects against unfair treatment claims

• Compliance – Limits Legal Liability

•

Administrative Time Saver

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Expectations… • Well written • Accurate • Informational • Followed by Management • Pleasant, not intimidating or offensive • Read by all employees

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Reality … • It will only be read by the employee two times. • 80% of your supervisors will only be familiar with 20% of your handbook.

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Key Sections

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Key Sections Handbook – “First and Last” FIRST… • Welcome Message LAST… • Acknowledgement of Receipt (Electronic or Print Manual)

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Key Sections •

Disclaimers

•

Employee Classifications

•

Employment-at-will statement

•

Electronic Communications

•

EEO Policy Statement

•

Conduct/Appearance Expectations

•

Anti-Harassment Policy

•

•

ADAAA Statement

Performance Management/Corrective Actions

•

Anti-Retaliation Policy

•

Personnel Files/Access Policy

•

Recording Time/Safe Harbor language

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Benefits

•

Leave Time

•

Jury Duty (state law driven)

•

Military Leave (National and State)

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Safety/Work Injuries/Violence

• • •

Drug Testing/Drug Free Workplace Wages, Overtime, Breaks, Attendance, etc. Confidentiality

TN Specific Payroll Dates, Non-Smoker Protection Act, Parental Leave, etc. ARTHUR J. GALLAGHER & CO. | BUSINESS WITHOUT BARRIERS™

Key Sections Handbook “Hot Topics” • Social Media Policy • FMLA Update • Acknowledgement of Receipt • Paid Time Policies • Disciplinary Policies

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Compliance Considerations

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Compliance Considerations Patient Protection & Affordable Care Act • Requires some employers to provide healthcare coverage or pay a penalty per employee. • Necessitates counting hours for part-time employees • Policies should include clear definitions of employee groups • As legislation continues to change, consider if details about your coverage, etc., should be removed from the handbook

Social media policy • • • •

No known false information or rumors about employer Never represent as a spokesperson for employer Allow limited use at work – manager discretion NO work email addresses used to register on social networks for personal use ARTHUR J. GALLAGHER & CO. | BUSINESS WITHOUT BARRIERS™

Compliance Considerations Family Medical Leave Act • • • • •

Complete Language Updated Military Leave Provisions Definition of “Serious health condition” In loco parentis Separate USERRA policy

Genetic Information and Non Discrimination Act • Prohibits discrimination based on an individual’s “genetic information and amends ERISA to prohibit group health plans and issuers from using genetic information in underwriting.

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State Specific Laws • Access to Personnel Files • Last Paycheck • Vacation Payout • Leave Provisions • Privacy Protections

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Tips/Best Practices

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Tips/Best Practices Common Areas of Concern • Outdated provisions

• Detailed anything

• Practice different from reality

• Forgetting that old handbooks exist

• Poor record keeping for acknowledgements, including updates • Detailed progressive discipline provision • Detailed investigative procedures

• Operations/Procedure manual and handbook inconsistent • Some policies intended for hourly employees but stated broadly enough to cover all employees (i.e., overtime)

• Detailed evaluation provisions ARTHUR J. GALLAGHER & CO. | BUSINESS WITHOUT BARRIERS™

Tips/Best Practices Steps to Take • Ensure policy and practice are consistent

• Avoid any specific reference to time or job security

• If mandatory language, do you really mean it?

• Consider an introductory period

• Graphics/ Incorporate Mission and Values

• Avoid terms “Probationary”; “Permanent”

• Consider your workforce

• Include Acknowledgement Form/Receipt

• Revocation language for all past handbooks and practices as well as option to amend

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Communication/Training

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Communication/Training Handbook Distribution Methods • New Hire Distribution • Department Meetings With Staff – Policy Updates

• Web Access/Employer Portal • Electronic Notifications Acknowledgement Forms • Collecting / Storing (Print/Electronic) • Problem Employee – Refuses To Sign ARTHUR J. GALLAGHER & CO. | BUSINESS WITHOUT BARRIERS™

Communication/Training Train Employees and Managers • Train employees on policies for awareness and to provide a defense for your organization – Outline applicable complaint reporting procedures – Explain how and to whom to make requests – Describe what they can expect from the company – Clearly state and reinforce what is expected of them

• Train supervisors on the handbook so they know: – What policies are – How enforcement occurs – How to handle requests and complaints. ARTHUR J. GALLAGHER & CO. | BUSINESS WITHOUT BARRIERS™

Communication/Training Prepare Managers For: • Can we keep this just between us? • Don’t use my name • Do you mind if my lawyer joins us? • Can I tape record this meeting? • I’ve talked to a lawyer who says the Company is violating the law. • Can I have a co-worker join us?

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Next Steps… 1.

Identify policies you may need to update.

2.

Consider the tone of your current handbook to see of adjustments should be made to fit your culture and desired messaging.

3.

Incorporate best practice information from today, if applicable, to enhance/improve what you already have in place.

4.

Think about training and communication opportunities for your employees and managers. ARTHUR J. GALLAGHER & CO. | BUSINESS WITHOUT BARRIERS™

Questions

Questions…

Marlene Cole, Senior HR Consultant Arthur J. Gallagher & Co. 5205 Maryland Way, Suite 300 Brentwood, TN 37027 Direct: 615-324-1148 Main: 615-244-8484