Companies of all sizes have a written employee handbook that governs all aspects of employment. It doesn’t matter whether you have one employee or 100 employees – having a written handbook can help you avoid many common misconceptions that can lead to unpleasant employee relations and occasion more serious issues such as discrimination lawsuits. Among the many great ideas for accounting for nonprofits, creating an employee handbook can help everyone understand the company’s guidelines.
Five Points to Include in Your Employee Handbooks
A written employee handbook usually includes several points. Some are generic to most employers while others may be specific to your organization. The following five points are usually found within most documents of this type.
- Anti-Harassment Policy: Every employee handbook should include an anti-harassment policy. Such a policy clearly states the definition of harassment, and states unequivocally that harassment within the organization isn’t tolerated. It should also include steps for handling harassment, who employees can report harassment to, and consequences for those engaging in harassing behavior.
- Working Hours and Pay Practices: It is important to clearly state the hours your company is open and the hours employees are expected to work. Include information about scheduled breaks and meal times. Make sure that break and meal times meet federal and state guidelines for workers. The workweek should be fined, with overtime definitions explained. The pay scale for both regular and overtime work should also be defined. Such policies can help you avoid costly wage disputes later.
- Leave of Absence: State whether employees are entitled to medical leave under the Family Medical Leave Act. Include details on how employees can request such leave, how much notice is required, reasons that qualify for leave under the act and other parameters for leave. If your company isn’t covered under FMLA but you do offer medical leave, include details on your company policy here.
- Employees with Disabilities: State how employees with disabilities can request confidential accommodations for their disability under the Americans with Disabilities Act. Include details on who they should speak with and other information on how your company complies with the act.
- Drug and Alcohol Policies: You should include information on your company’s drug and alcohol policies. In states where certain drug use is permitted, this is critical. Drug testing information should be included, and information on whether drug tests will be given prior to employment, at random, after an accident, etc. Additionally, you may also wish to include information on how to report potential substance abuse problems and what help is available for employees who may have a substance abuse problem.
Written Policies Prevent Misunderstandings
It’s surprising how often companies neglect to create employee handbooks, or they do not update what they have. As leaders in the accounting for nonprofits field, it is up to us to ensure that the organizations we work for have the best resources at hand to manage their finances wisely. An employee handbook can help with that in many ways.
- Clear, unambiguous policies are less likely to put your organization at risk for a lawsuit.
- Grounds for termination due to drug or alcohol violations can also be shared so that they are quite clear to all who work for the organization.
- Overtime pay rates are clear for all in the organization.
Employee manuals and handbooks can’t keep your organization from every potential pitfall, but they do go a long way to ensuring clear communications for all.
If you struggle with your accounting for nonprofits, Beck & Company can help. We are a CPA and business advisory firm dedicated to the nonprofit sector. Our many years of experience can help you update your financial compliance or handle all types of accounting for nonprofits. Please contact Beck & Company today for further details.