Employee Handbooks Strike Again!

The February 2007 edition of this newsletter reported on a case in which a court held that an Employee Handbook may have created an implied contract, defeating the at-will nature of the employment relationship. On March 16th the D.C. Circuit Court of Appeals ruled that another Employee Handbook violated the National Labor Relations Act (NLRA). Here's the story.

Section 7 of the NLRA gives all employees, union and non-union, the right to discuss the terms and conditions of their employment with others. Section 8 prohibits an employer from interfering with employees' Section 7 rights.

In this case, the company's Employee Handbook included a policy related to "principles and values" that addressed confidentiality and read, "We honor confidentiality. We recognize and protect the confidentiality of any information concerning the company, its business plans, its partners, new business efforts, customers, account and financial matters." The Company's use of the term "partners" referred to its employees. In another section entitled, "Discipline Policy," employees were warned that they may be sanctioned for "violating a confidence or [for the] unauthorized release of confidential information."

The Company argued that there was no language in their policy that would reasonably have a "chilling effect" upon employees in exercising their Section 7 rights. The Company also pointed out that no discipline had been issued to any employee for violating that provision of the policy.

The Court agreed with the NLRB's decision on two counts: (1) "although [the Handbook] does not expressly forbid protected employee discussions, an employee would reasonably construe it to do so; and (2) "the 'mere existence' of a rule whose plain language interferes with employees' Section 7 right[s]...violates the Act quite apart from whether the Company enforced the rule in practice."

Lessons Learned? Be sure your Employee Handbook serves your company's best interests -- that is says just what you want it to say and does not create any unintended legal liability. Another common policy (or practice) is one that prohibits employees from discussing their wages with any other employee. That provision has also been held to violate the NLRA. Has it been more than two years since you last had your Employee Handbook reviewed? Call FiveL Company today for an estimate and references.

Hot Hits! Education Corner

April's Public Seminars/Speaking Engagements:

Thursday, April 5th, "Balancing Competing Interests: When Work-Life Balance Tips the Scales" presented during the CHRA Spring Conference.

Thursday, April 19th, FiveL Company is sponsoring the HoCoHRS monthly meeting featuring, "Know When to Hold 'Em and When to Fold 'em: Play Your Cards Right with Your Boss," presented by Vicki Hess, RN, MS of Catalyst Consulting, LLC.

Thursday, April 26th, a presentation for the members of the HR Roundtable of the MD & DC Credit Union Association, 11:00 - 2:00, Bethesda, MD. Topic t.b.d. Contact FiveL Company for more detail.

Wage & Hour Violations in the News

The U.S. Department of Labor recently announced a settlement of more than $1.8 million in back pay to be paid to more than 2,500 employees in 16 different states for overtime violations. Remember that non-exempt (hourly) employees must be paid 1.5 times the employee's regular rate of pay for all hours worked over 40 in a work week. The regular rate can be different from the employee's hourly rate of pay. The regular rate includes the employee's hourly rate of pay plus other payments and compensation including and not limited to: Commissions; Non-discretionary bonuses; Certain productivity or performance bonuses; Certain premium payments such as shift differentials; ...and more. Be sure, too, that you have properly classified your employees as exempt/non-exempt. Remember the exemption is for an individual, not a job. Thus, you could have five employees in the same job classification, four of whom are exempt and one who must be classified as non-exempt because s/he does not meet the minimum salary, salary basis or duties test. Finally, don't forget about your states' regulations. There are currently 17 states that have regulations that define the exempt classifications of Executive, Professional and Administrative employees differently from the federal regulations. This means that you could have employees who qualify for exempt status under the federal regulations but who do not meet the test under your state regulations. For a list of the 17 states that have their own regulations contact FiveL Company today.

FiveL Company Expands International Readership

Last year this E-Newsletter expanded to an international distribution adding readers from the Bahamas and Cayman Islands. This year we say, "Welcome" to a reader from Trinidad & Tobago. Interested in global HR issues? Consider the GPHR certification program sponsored by the Human Resources Certification Institute (HRCI).

Spotlight

Sharon Scibek, Director of Learning & Organizational Development for the National Electrical Benefit Fund shared this feedback following a presentation of "Workplace Ethics and Respect" for staff and managers, "Heard positive comments from the staff members. They liked the topic and format of the presentation. Asked to have Christine back again. I appreciate, Christine, your flexibility ." Thanks Sharon! Are you looking for a new, interactive way to address issues of Workplace Ethics and Respect? Call FiveL Company today for a program outline and pricing.