Companies develop policies for a variety of reasons. Some are geared toward implementing regulatory requirements; others are designed to aid in the day-to-day operations of the company. Human resources departments are often the source of an organization’s work-place policies.

The actual policies adopted will vary from company to company and will depend on size, number of employees, benefits offered, and other factors. A small business generally does not require as many written policies as a company with a large workforce. But regardless of the size or complexity of a company, once there is at least one employee, it is wise to write down policies for employees to follow.

• Assess the workforce and ask for input from many employees to create quality company policies.

When creating policies, it is important to anticipate how to deal with situations that may arise. Employers should have standardized procedures for how situations will be handled, rather than leaving it up to employees or supervisors to determine what should be done.

The first step is to assess the workplace to determine what policies are needed. Most companies find it helpful to involve individuals from a cross-section of the company in the assessment. One person may understand a requirement but may not know that a specific area or process has a particular concern.

Involving more individuals promotes ownership of the process, which is almost always beneficial. Consider forming an advisory committee to help with implementation.

• While few policies are required, employers should create and distribute information employees are expected to know.
• Written company policies provide employers with legal protection.

Very few company policies are mandated by law. If a state or federal agency wants to make employees aware of something, the agency requires a poster rather than a policy.

For example, policies on discrimination and harassment are strongly recommended, but are not required by federal law. However, the Equal Employment Opportunity Commission (EEOC) does have a poster on discrimination laws. Most employers probably have posters on minimum wage, Family and Medical Leave Act (FMLA) rights, Occupational Safety and Health Administration (OSHA) compliance, and so on.

At the federal level, the FMLA regulations state that employers must provide the general notice to employees (which has the same information as the poster) “by including the notice in employee handbooks or other written guidance to employees concerning employee benefits or leave rights, if such written materials exist, or by distributing a copy of the general notice to each new employee upon hiring.” This means that even if employers have a handbook, the FMLA general notice could still be distributed separately.

Although there aren’t many mandatory policies, employers should have a policy for any subject that employees are expected to know about, or which might offer legal protection.

• While specific policies depend on a company’s needs, several policies are considered common practice.

The policies implemented will vary depending on the company’s specific work operations and environment. Below are some of the most common policies companies maintain:

• Anti-discrimination — Employees should be aware that that the company prohibits any kind of discrimination in the workplace. The policy should include clear explanations about what constitutes discrimination and should outline the company’s commitment to keeping it out of the workplace.
• Attendance — Provide expectations for employee attendance, disciplinary measures, jury duty, etc. Employee attendance can have a direct effect on a company’s bottom line, and unexcused absences should not go unnoticed. Employees need to know what their obligations are and what potential consequences there may be.
• Benefits — Share details on health insurance, tuition assistance, life insurance, retirement plans, pension plans, employee assistance programs (EAPs), medical reimbursement, etc.
• Confidentiality — If employees are dealing with sensitive or confidential information, it may be wise to ask those people to sign a confidentiality statement. Gossip, faulty conclusions based on incomplete information, speculation or premature discussion of company plans or expectations can seriously harm and perhaps destroy a business or its customers. Employees should be warned of this danger.
• Continuation of health benefits/COBRA (the Consolidated Omnibus Budget Reconciliation Act) — Create a policy for continuation of health/medical benefits to employees that leave the company. Despite providing the general notice under COBRA, employees benefit from having a reference to turn to.
• Dress code — If the company has any requirements or expectations for appearance, inform employees through a policy. Some companies require uniforms; if so, it’s best to indicate who provides and pays for uniforms — the employer or the employee. Grooming requirements may also be considered. These should be stated clearly, as should requirements for safety or sanitary garments.
• Email/internet/computer — Employees need to know that computers and email and internet accounts are the property of the company and that there should be no expectation of privacy. It may also be a good idea to include information on how a company may monitor employees’ computer, email, and internet usage.
• Employee separation — Document information for exit interviews, severance pay, and references. Although termination is distasteful to many business owners, it is wise to have a written policy on matters such as layoffs, seniority rights, severance pay, and the conditions that warrant summary discharge. Document in writing all events leading to a summary discharge, as this evidence will be critical in determining liability in unemployment compensation claims as well as possible civil actions.
• Family and medical leave — Share eligibility, procedures, who to contact, and what is or is not Family and Medical Leave Act (FMLA) leave. The FMLA requires a poster to inform employees of their rights, but employers may provide more detail.
• Flexible scheduling — Describe in detail any flexible scheduling programs the company has, guidelines, and eligibility. Flexible scheduling helps with workplace-family balance issues, and employees benefit from knowing the boundaries.
• Grievance procedures — Whether the company has a collective bargaining agreement or not, employees benefit from knowing what to do with their complaints. Plan for grievances and establish procedures. Consider the employee’s right to demand review and consider provisions for third party arbitration.
• Holidays — Describe eligibility for holiday benefits, holiday closings, and when work is permitted or required.
• Payroll — Share when employees are paid, and options such as automatic deposit. Employees need to know when they will be paid, and on what basis.
• Performance reviews — Describe when reviews are conducted, criteria, results, etc. Each employee’s performance should be periodically reviewed and evaluated. Organizations need to determine what factors will be considered. Determinations must be made on whether serious deficiencies will be cited in writing and a deadline set for improvement; and whether salary adjustments and training recommendations will be made based on the review.
• Promotions — Detail what is expected of employees to achieve promotion, etc. Consider promotion matters including normal increases of wages and salaries, changes of job titles and the effect of the company’s growth on employee advancement.
• Safety rules — Share the importance of safety, consequences for not following procedures, reporting incidents, workers’ comp, etc. Every employee has certain responsibilities to help preserve safe and secure working conditions, be it opening the doors in the morning or locking up at night, tending a cash register, being alert for shoplifting, being alert for conditions that can cause injury, knowing what to do in case of a robbery or other emergency.
• Sexual harassment — Provide clear definitions of sexual harassment, consequences, disciplinary issues, etc. Actively prohibiting sexual harassment can go a long way in court if a sexual harassment claim is filed. If employers have a policy, it needs to be enforced.
• Sick leave — Share information on eligibility, scheduling, allotment, accrual dates, calling in, and carrying over time to another year. Employees benefit from knowing what the limits are to the company’s sick leave policies, and any potential consequences.
• Smoking — Are there designated smoking areas? Is smoking prohibited? Has the policy defined the company’s stance on e-cigarettes? Policies for smoking on the job or on the work premises should be clear and enforced.
• Substance abuse — Document consequences for substance abuse on the job. Use or abuse of alcohol or illegal substances on the job usually results in termination, especially after one or two warnings. Organizations may also consider employee use or abuse outside work when it affects such things as job performance through tardiness, absence, inattention, mood swings, and avoidable accidents. Local social services may be available to help troubled employees. Policies on substance abuse must be clear, in writing, and enforced.
• Time worked recordkeeping — What forms are to be used by various employees for tracking time worked. The Fair Labor Standards Act (FLSA) requires the recording of hours worked by all employees who are eligible to receive overtime pay.
• Use of company property — Share proper use of computers, tools, copy machines, telephones, supplies, etc. An employee may ask to use company equipment or facilities for personal business. Limits or prohibitions on such use should be clear from the beginning of a person’s employment.
• Vacation — Describe eligibility, scheduling, allotment, accrual dates, and carrying over time to another year. Another consideration may be whether to allow employees time off for personal needs, emergencies in the family, or special religious observances (be aware of religious discrimination laws). Time off policies may also include lunch hours and work breaks during the day, jury duty, and service in the local volunteer fire department, or the local National Guard and Civil Air Patrol units.
• Weapons — If weapons are mentioned only within a larger code of conduct policy, consider separating weapons into their own policy. The policy should clearly define what constitutes a weapon, whether weapons are allowed on company premises, and how violations of the policy should be reported and will be handled. Be sure to review all state and local laws. For instance, some states specifically allow employees to store weapons in their private vehicles on employer property.
• Work from home — More employees now than ever are working from home, and employees and employers benefit from having a policy that communicates what is expected. Expectations can include hours of operation, communicating, attending meetings, and so forth. Dress codes are likely somewhat moot, but if employees are engaged in online calls or conferences that include video, appropriate attire should be worn.
• Work hours — Describe when employees are expected to work and when employees cannot work. Consider the number of hours per week, the number of days per week, evening and holiday work, and the time and method of payment for both regular and overtime hours. Unnecessary payment of overtime cuts profits. With planning, employees’ work should be organized to keep overtime at a minimum. When peak periods occur, the use of part-time help paid at regular rates may be considered.

• HR departments may have separate, specific policies.

In addition to policies that may govern the entire employee population, many human resources (HR) departments have policies that are geared toward the department’s own activities. These may include the following:

• Compensation. The bulk of employees’ earnings should come from a base salary competitive with that offered by other local firms. It may be possible to supplement the base salary with an incentive such as a small commission or quota bonus plan. Try to relate the incentive both to company goals and to the goals of employees. Whatever plan is chosen, be sure each employee understands it completely.
• Orientation. Many organizations prefer to have an orientation period of 60 to 90 days to make certain the employee is a good fit for its operation. Problems can be identified and corrected. Orientation also is useful for correcting serious performance problems that develop during the course of employment.

• Employers should communicate personnel policies to employees.

When a company has developed personnel policies, put those that affect employees in writing and give each employee a copy.

For the small business, this statement may consist of one or two typed pages. For larger operations, it forms the core of an employee handbook. It is very important to have written policies. These help to resolve minor issues quickly, and in more complicated matters, courts can rely on policies as authority. It is also important to note that the policies are not contractual and may and will be changed from time to time.

Because policies are communicating the way a company wants things done, it’s important the policies are clear and easy to read. Make policies readable through formatting and using simple language.

It’s also helpful to create all policies and procedures in the same general format. And, developing a numbering or lettering scheme can help quickly identify a particular policy or procedure.

• Employers should implement company policies to employees strategically to garner workforce support.

First create, then implement policies and procedures. In addition, making changes may require retraining employees — especially those whose duties were affected — within a reasonable time.

The best way for an organization to implement policies will depend on what the new policy is doing and what problem it is designed to address.

In some cases, sharing a policy via email alone can be effective. Or it may be better to introduce the policy through in-person information sessions or formal training events.

A company may find it helpful to foreshadow a coming policy to provide advanced notice to employees of changes. Try to anticipate potential questions to be prepared to address them.

Finally, explain the reasons behind the change. This can help earn respect and buy-in from the workforce.

• Employers should consistently enforce company policies to avoid legal liability.

Organizations should enforce policies consistently. It’s also important that those responsible for enforcement understand all policies completely. When that is not the case, trouble can ensue.

Beyond just understanding and communicating the organization’s policies, managers are responsible for enforcing policies. In particular, a disciplinary policy should be followed each time the policy is violated, not intermittently. Failing to apply policies consistently can incur liability for the organization.

When employees see that policies aren’t administered fairly, morale is likely to suffer, and employees’ respect for management may also be compromised. Employees are more likely to disregard policies if employees don’t expect the policies will be enforced consistently. Employees may even be caught off guard when policies are enforced, which could lead to charges of unfair treatment.

Failure to enforce policies consistently could also lead to legal liability for any organization. Consider the following example: A strict attendance policy indicates that an employee who is at least 10 minutes late for work three times in a six-month period will be terminated. Managers sometimes note when employees are late, but often look the other way. However, on a particularly trying day, a manager decides to enforce the policy. Following it to the letter, the manager terminates a particularly frustrating employee the third day that the person is late to work.

The problem? The employee is a member of a minority group and files a claim of discrimination against the organization, alleging that the person was fired because of the minority status. Up until this point, other supervisors haven’t enforced this policy to termination, even though several non-minority individuals have been late three times (some even more often than that) in a six-month period.

While this alone does not prove that the individual was specifically discriminated against, the fact that the policy was not consistently enforced may give the claim more weight. If the employee also had other evidence of discrimination based on race, the organization might find itself on the wrong end of a lawsuit, even if the intent of enforcing the policy was not discriminatory in nature.

Policies should be dependable representations of what employees can expect, and regular implementation will make these standards clear. If a manager doesn’t feel comfortable enforcing a policy, the person should not disregard it, but should talk to HR. If the policy is outdated, inappropriate, or difficult to enforce, revise or remove the policy instead of ignoring it.

• Employers can use employee handbooks to clearly communicate policies and procedures to the workforce.

Employee handbooks are not legally required (unless through state requirements); however, most companies find handbooks to be invaluable.

Without a handbook, policies and procedures tend to informally change, and employees may not understand exactly what the current policy says. Having clearly written policies, centrally located, helps ensure that employees (and supervisors and managers) follow company procedures.

Plus, through the process of writing a handbook, employers are forced to think about policies and procedures. This allows a company to make enhancements and think through policies.

• Regularly review and update company policies to avoid problems.

Perhaps a company may not have had time to address known problems with its policies. Or perhaps a company thinks its policies are well-written and comprehensive. That’s possible, but odds are, a company’s policies (or its handbook as a whole) have at least one of the following problems.

1. The policies are reactive. Many companies don’t create policies until a question of how to handle a particular situation arises. Unfortunately, such a strategy means that the first instance of most issues in the workplace will be met with puzzled looks and confused employees. Make a point to create policies to address emerging issues in the workplace (like employee social media use and “bring your own device” policies) before these situations arise. This way, employees will know what to expect, and a company and its managers and supervisors can enforce a consistent standard.
2. The policies don’t reflect changes to federal and state laws. In many organizations, company policies are created and then remain untouched for years, but regular review (and often updating) of such policies is necessary. For instance, decisions from the National Labor Relations Board over the past few years have greatly affected the extent to which employers can prohibit employees from discussing “confidential information,” and from saying “disparaging” or “negative” things about the employer. The Americans with Disabilities Act, as amended, has also provided broader protections for employees. For policies to be effective (and legal), monitor for changes like these at both the state and federal level, and revise policies as needed.
3. The policies are written in legalese. Company policies written in a way that employees would need a law degree to comprehend the text won’t help clarify rules and expectations in the workplace. Polices should be written in layman’s terms and backed up with verbal reinforcement from managers and supervisors. While a complicated policy could still hold up in court, it’s best if policies are clear enough to help keep the company out of the courtroom in the first place.
4. The policies create employment contracts. Legal professionals often recommend that employers include a statement in their handbooks that nothing negates the at-will employment relationship. That’s because policies that are too detailed can create a contract of employment. For instance, if a progressive discipline policy insinuates that a certain process will always be followed before an employee is terminated, an employee who was terminated more abruptly may be able to argue that the company wrongfully terminated the person.
5. The policies are not consistently enforced. There are many reasons policies might not be enforced consistently. The policies might be outdated, for example, or might not mesh with company culture. Whatever the reason, policies should be deviated from only for good reason and in special circumstances. Otherwise, inconsistently applied policies can create legal risk instead of mitigating it, which most handbooks are intended to do.

A review of a company’s handbook at least annually is wise and will allow the company to keep an eye on some of the more common ways policies go astray. A legal review may not be necessary every year, but a little extra protection is never a bad thing, either.