Tag Archives: employee handbook

Employers Beware: Your Employee Handbook’s Arbitration Clause May Not be Enforceable | Michel and Associates, P.C.

downloadUpon hiring a new employee, it is a common practice for most employers to provide the new employee with an employee handbook stating the general policies and procedures of the employer.  Sometimes employers will have an arbitration clause within the employee handbook, and thereby attempt to impose binding arbitration on the parties for any disputes between the employer and employee.  Most employers are also advised to have their new employees sign an acknowledgment which indicates that the employee read the handbook, understands its contents, and agrees to its terms.

Most employers assume, or are told, that receipt of the signed acknowledgment form ensures that the employee is bound by the handbook’s provisions, including the requirement that the employee arbitrate any employment-related disputes.  But, according to a recent California Court of Appeal, most employers are wrong.  Employers should not rely upon an arbitration clause in a prolix employment handbook unless the handbook is carefully crafted to ensure the arbitration clause’s enforceability.

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Top 5 Most Common Errors in Small Business Employee Handbooks | SOOFI

Employee Handbooks are an integral part of every small business’s “CYA” arsenal. They are intended to provide objective standards for employee conduct, expectations, and disciplinary procedures.

However,  the overwhelming majority of small businesses tend to rely on publicly available online forms  or policies borrowed from fellow business owners to prepare their employee handbooks, whether out of necessity, preference, or convenience.

In states like California where employment and labor laws are constantly being added or amended, it is worthwhile to review your company’s employee handbook from time to time to assess whether they are adequate or create unnecessary risk that, with a few tweaks and modifications, could be mitigated.  Complying with labor laws is a lot like keeping good  dental hygiene: an unpleasant and frequent annoyance but one for which  an once of prevention is worth a thousand pounds of cure.   Here is some guidance on the most common errors or mistakes in small business employee handbooks:

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