Policy Item

What It should say

Problems to avoid

Equal opportunity statement

State that an employee’s religion, age, sex, national origin, race or color will have nothing to do with hiring, promotion, pay, or benefits

Don’t include the Affirmative Action Plan, if you’re required to have one, in this section.  Refer instead to a separate handbook.

Physical Examinations

Be sure your decisions to conduct a physical are nondiscriminatory—i.e.don’t just examine older people or minorities.

Hiring of relatives

State whether you will allow a married couple or close relatives to work together in the same department.

Too strict policies—e.g., requiring two employees who get married to choose which will remain with the company--are bad for morale.

Works hours

Define the workweek and time allotted for lunch and breaks.  Indicate the cut-off time for each pay period.

Provide yourself with the option of rescheduling individual hours of work in any given week at the discretion of the supervisor.

Employee status

Define the nature of each type of employee—full time, part time, temporary, and “exempt” and “non-exempt.” Make clear what benefits each is eligible for.

Be specific to avoid any chance of misconception.

Overtime pay

Establish clearly whether overtime is paid for work over 40 hours a week or over 8 hours in a given day, and how much is paid for work on a holiday.  Make it clear that pay for overtime must be approved by a supervisor.

Pay reduction for lateness

Severance pay

Performance review and merit increases

Time clock or sign-in systems

Emergency shutdowns

Group Insurance benefits

Holidays

Vacations

Personal time/sick leave

Military leave of abscence

Personal leave of abscence

Jury service

Bereavement pay

Pension or profit-sharing plans

Suggestion system

Tuition assistance

Bulletin boards

Confidentiality

Causes for discipline

Discussing complaints and grievances

Solicitation or distribution of literature

Additional items for your employee handbook