Four Employment Policies Every Small Business Should Review This Year
Many employment disputes I see did not start with a bad person. They started with an outdated policy, or no policy at all. If you run a small business or a nonprofit, you do not need a 200-page handbook. Let's be honest, no one is going to read it. You do need a few core policies that are current, written down, and actually followed.
Here are four worth reviewing this year.
1. Anti-Harassment and Equal Employment Opportunity
This is the policy that matters most when something goes wrong. A strong policy explains what conduct is prohibited, gives employees more than one way to report a concern (not only to their direct supervisor), and promises that people who report in good faith will not face retaliation. Again, this must actually be followed. Otherwise, the words are empty (and so will be your pockets).
Action: Check whether your policy names who receives complaints today. If that person left the organization last year, your policy has a hole in it. Let's raise the bar on excellence.
2. Pay Practices and Timekeeping
Wage and hour mistakes are common and expensive, and they often affect many employees at once. The Fair Labor Standards Act is very prescriptive on what it expects from organizations when it comes to paying employees.
Action: Make it a priority to review two things. First, confirm that every role you treat as exempt from overtime actually meets both the salary and job duties requirements. A job title alone does not make someone exempt. Second, make sure nonexempt employees record all time worked, including time spent answering messages after hours or working from home. The devil and yes, even the Courts are in the details.
3. Leave
Leave obligations depend on your size and location. Federal family and medical leave (FMLA) applies to employers with 50 or more employees, but many states and cities have their own paid sick leave or family leave laws that reach much smaller employers. Your policy should match the laws where your employees actually work. Work closely with your employment counsel (or contact me) to make sure that you are compliant with the law.
4. Performance Management and Discipline
When an employee is terminated, the documentation tells the story. Your policy should describe how concerns are raised, how they are documented, and who reviews a termination decision before it happens. Untrained managers are bad managers. Bad managers are simply bad. A healthy workplace is the goal and consistency gets us there. Similar issues should lead to similar responses, no matter who the employee is.
Where to Start
Pick the one policy you are least confident about and review it this month. Sit with your HR team and start to think about what actions, if any, you must take to get you in a strong place.
If you are not sure whether your policies still fit your organization, that is exactly the kind of review I do. Let's connect. Request a discovery call →
This post is general information, not legal advice, and is current as of its publication date. Employment laws vary by state and by the size of your organization.
