National Clothesline

“The tragedy in life doesn't lie in not reaching your goal. The tragedy lies in having no goal to reach." -– Benjamin Mays

If you are not familiar with Benjamin Mays, here is some information to enlighten you. Dr. Benjamin Elijah Mays (August 1, 1894 – March 28, 1984) was an American minister, educator, scholar, social activist and the president of Morehouse College in Atlanta, GA.

He was also a significant mentor to civil rights leader Martin Luther King, Jr. Mays was among the most articulate and outspoken critics of segregation before the rise of the modern civil rights movement in the United States.

Many people in business today do not have goals. They are too busy working in their business and not on their business.

Do you have goals? Are they personal goals or business goals? Have you created timelines to achieve those goals?

You have to hold yourself accountable if you do not achieve the objectives you have set for yourself. When I visit a business, my clients and I set goals for their business and personal life.

“I have been in business for 15 years and never had an employee handbook. One of my friends is being sued by an ex-employee because of the inconsistency of his treatment of the employees. What information should I put into an employee handbook?”

This cleaner is lucky he is not in business in California. Litigation regarding employee problems is rampant in California. I spoke with a drycleaner this week who is being sued by an ex-employee who left the company 18 months ago. In fact, she joined with another employee in filing the suit.

These two women happened to be friends. The second party to the suit walked off the job two weeks ago.

There is an attorney in the city where they live who blatantly advertises in Spanish language papers looking for clients.

Even if the client does not have a valid case, most companies find it is cheaper to settle out of court than to hire an attorney and fight the cash grab by the attorney. Be happy if you are not in business in California.

Now I will address the issue of the contents of an employee handbook. Please remember that every state has different laws, so you must check with an attorney to be certain you conform to federal and state laws.

An introduction about the handbook and possibly a short company history should start your book. Next, spell out the terms of employment.

California is an “at will” state. Theoretically, this means you do not have to justify or have cause to terminate an employee. This does not preclude the terminated employee from running to the state or federal government and claiming discrimination as the cause of termination. I replaced a minority male with a minority female and that is exactly what happened to me.

Following the introduction, a statement about the employment application and false statements that are made in the application is discussed. Next, the consequences to the employee of making such falsehoods are talked about.

I always ran background checks on any employee who handled cash. One new hire lied about not serving prison time. I called him into my office and asked him about his being an ex-con. His response is one I will never forget. He said, “I only stole from my mother.”

The next thing you do is let the person know you might want to have a drug test or physical examination done. This is followed by information regarding previous employment references and the fact you will not provide any reference unless the request is written.

You next inform the employee you may perform a background check. Immigration law is the next point of discussion.

With all of this information are warnings that an employee could be terminated, and such termination would not be cause for filing a lawsuit.

Discrimination and harassment policies follow. Harassment can be a problem. One way of dealing with discrimination is to set up a pro-active system.

My human resources attorney recommended the “We Want To Know Hotline.” My employees were informed of this hotline and the fact they could call and report anything they want, even anonymously, so long as they identify the company.

Even that program could not save the day for me. I had a young man who worked for me. He said some things to a young woman that were never reported. The lawsuit cost the company $100,000 of which $80,000 went to my attorney and her attorney.

The plaintiff alleged she brought the harassment to the attention of the company. It ended up as a “he said, she said” situation.

The bottom line is, record in writing any complaint an employee makes. Furthermore, if an employee has a complaint or has to be disciplined, it is recommended that you have a manager from the company witness the complaint or disciplinary action.

Everything should be in writing and signed by the employee, supervisor, and general manager or owner. The handbook will discuss all of this along with investigating complaints.

You need to have a training program in place for management personnel regarding harassment and discrimination. Disability and pregnancy accommodation have to be talked about.

When I had an employee tell me she was pregnant, I would tell her to get a letter from her doctor telling me how long she could work. Furthermore, I told the employee to inform the doctor that she worked in a cleaning plant with possible solvent fumes. Everything becomes a CYA situation.

Orientation and fraternization were discussed next. I had two employees who got married. They were both route drivers. Down the road, (no pun intended), they both quit and took a large amount of business with them.

In California, non-compete agreements between an employee and employer are not legal.

Hiring related employees is talked about. If two members of the same family are with the company, and one is a supervisor, a conflict of interest could occur which will lead to termination of one of the employees.

Employee solicitation is written about. Consider having a company bulletin board.

An open door policy is an excellent provision in your handbook. Arbitration and dispute resolution have to be written about. In another disclaimer statement, the employee is told nobody can change any of the terms of the handbook.

Confidentiality and non-disclosure are important subjects to be included. Confidentiality is sometimes used as a basis of a lawsuit in California when a route driver leaves with customers. The problem is that even if you win in court, the driver does not have the assets to pay you the judgment.

Something that you would not expect is also included. This is that a system or product that the employee develops, while at work, becomes the property of the employer. Conflict of interest is an important topic. I have seen a situation where a route driver was running two routes concurrently. One was his “personal” route and the other was the company route.

We are not even half way through the employee handbook that I used. Next month I will continue with as much as I can provide. This is dependent upon the descriptions of the handbook clauses. If you have any question regarding the subject, feel free to call or e-mail me.