Employee Handbook Updates

So, you have an Employee Handbook. You purchased or revised it back in 2008. You made sure it protected your business; what you’ve strived so hard to maintain, as well as your employees; the lifeblood of your business’s future. You passed them out to new hires and made sure that they understood it thoroughly. You had all your bases covererd.

It’s now 2011 and a lot has changed. The economy has become sick off of its own bad habits, and many laws have been passed to mitigate that. The California law AB 2774 has recently changed the way the Division of Occupational Safety and Health goes about their business. It is becoming not just important, but an absolute necessity to get your Employee Handbook updated every year. Times, they are changing.

So, if you haven’t had your Employee Handbook updated in a while, you better start swimming or you’ll sink like a stone. Now, more then ever, the Employee Handbook is the main safe-guard against the ever watchful eye of the government. You can view past posts and see that we here at BizAssure have reiterated this point in several different ways. The importance of having your Handbook updated yearly cannot be ignored, and there is no better time than now to get that process started. The year is young, and that leaves you with fleeting opportunities.

Every month we receive dozens of inquiries into the implementation of Employee Handbooks. Some of these businesses have not had their Handbook updated for years. When they receive their review or new handbook, they are amazed by what has changed, and by what they were missing. After that, we usually hear back from them every year. So please, regardless of your method, make sure the suit of business armor you don this year is sturdy and strong! We here at BizAssure want this to be the year that the strong arm of the economy makes its long awaited return. For more information on this topic, please call us at (800) 549-7827, or you can email us at KnowMore@BizAssure.com.

New California Safety Requirement AB 2774 – Employers Bane? Or Friend?

For those that don’t know, AB 2774 is now law in California. This gives the Division of Occupational Safety and Health (DOSH) the ability to more thoroughly issue fines. Said fines are nothing to scoff at either, they are potentially crippling; how would, say, a relatively small business handle a $25,000 fine? Ostensibly, this law seems to be a frightening thing to behold… But is it just another weight on the shoulders of an already over encumbered business market? Or does this law actually have some important benefits for employers? Let’s look a little more into what kind of power AB 2774 now gives DOSH.

"...how would, say, a relatively small business handle a $25,000 fine?"

Before AB 2774, not only did DOSH have the overwhelming task of proving that a violation had a 51% probability of actually causing harm or death, but these violations were difficult to maintain during the appeals process. Needless to say, in the eyes of DOSH, serious violations were not being treated as such. Injury & Illness Prevention Plans, or IIPPs, no longer protect an employer just because they have one on hand. In other words, the employers IIPP must be comprehensive and professional, if not, a $5,000 fine could ensue, and that is usually just a precursor for the even darker clouds rumbling off in the distance.

AB 2774 has established simple rules for DOSH and has given them a straightforward set of steps to follow in the process of issuing fines, this means eliminating ambiguities. A cookie-cutter IIPP is one of the aforementioned ambiguities. Employers must make sure that they have an IIPP that is not only relevant to their current situation, but one that closes any gaps in their safety plan. As long as employers do their best to have a clear IIPP, they have many opportunities that they may not have had otherwise. This brings us to how AB 2774 can actually benefit the employers.

Before AB 2774, a business’s safety record could be permanently marred from an allegation or violation issued by DOSH, regardless of the overall outcome. For some business’s this mar could have a devastating effect, but with AB 2774 this all changes. The employer now has the opportunity to have a discussion with DOSH, leaving the possibility open that DOSH could change their decision outside of court.

"...a business’s safety record could be permanently marred from an allegation or violation issued by DOSH, regardless of the overall outcome. "

Yes, reason is now involved in the process. Part of the steps DOSH must now take in issuing - or in this case not issuing - a violation, is to determine whether the employer’s process of determining hazards in the work environment and how they act to solve them, are up to standards. In other words, did the employer take all necessary steps possible to protect against these dangers, or was the management in some way lacking? If the employer can prove that it was the former, then their chances of dodging an unfair violation are in their favor. If DOSH still decides to issue the violation, there are even further steps the employer can take to prove their proficiency.

AB 2774 puts new standards on the table, but for the always watchful employer, these new rules can be to their benefit. Put simply, AB 2774 makes the process more fair for both sides, and allows the employer specifically the opportunity to show DOSH that they know what they are doing.

Employee Handbooks Simplified

Take a moment to think about the ways in which you, as an employer, protect your business and your employees. You may have an HR person on board who can deal with the basics and common questions that will occasionally arise. They are there to designate the proper procedure as a problem makes itself known, and mitigate it as it runs its course. Though they are an important tool to protect your company, they are only a piece of the puzzle.

One of the most important shields your business can exhibit is your Employee Handbook. Your Employee Handbook should be a readily available tool that comprehensively and incisively explains to your employee what you expect from them, and what they should expect from you. The law also requires that the handbook clearly state certain policies to the employee, which in turn provide the business with legal protections. An Employee Handbook is a way to set in stone what your business expects from the employee and to abide by what the law expects from you; this isn’t so easy though.

Simply having an Employee Handbook doesn’t suddenly create a magic barrier around your business that deflects legal implications and maintains an ordered working environment. In fact, not being clear in a statement, or simply not saying something at all can actually create trouble for your business. An Employee Handbook can be a great way to communicate with employees as long as employers use extreme caution while drafting the document. This ensures the business is safe from legal implications that could otherwise arise. SmallBusinessNotes.com put it this way, “Misunderstandings or misstatements can create legal liabilities for your business. In legal disputes courts have considered an employee handbook to be a contractual obligation, so word it carefully.” Needless to say, with all the laws and revisions that are introduced every year, maintaining a healthy Employee Handbook can be a daunting and expensive task.

Now enters BizAssure. As stated in our last blog, BizAssure contains a plethora of services necessary for a thriving business. These services are akin to a personal back office support team. Littler Mendelson, the number one labor law company in the country, and Jackson Lewis, rated a First Tier Law Firm by U.S. News & World Report, have partnered with BizAssure to provide the best possible legal support available, which includes Employee Handbook reviews. If you would like to find out how you can get a free Employee Handbook review from one of the two most prestigious law firms in the country, and to learn more about BizAssure, please visit BizAssure.com or call us at 1-800-549-7827.