Cliff Hammond, a senior attorney with Detroit-based management side labor and employment law firm Nemeth Law PC, says the recent flap surrounding employee handbooks at mortgage giant Quicken Loans should serve as a reminder to employers about the critical role such handbooks play in the underlying employer/employee relationship.
“Even leading edge companies like Quicken, with an outstanding reputation for corporate culture, need to keep their employee handbooks current and meaningful,” Hammond said. “Whether actively referred to or just distributed without fanfare to new employees at orientation, the employee handbook is still a critical tool in defining and guiding day-to-day employer/employee interaction,
regardless of company size, status or industry. When a legal issue arises, the handbook is immediately referenced, for better or for worse.”
Beyond the handbook and the National Labor Relations Board hearing on whether Quicken violated employees’ rights to free speech, Hammond says there are deeper issues at play.
“An employee handbook may have been the conversation starter in the Quicken case, but the issue is much broader than one company. Union strategists are seeking new industry targets and the mega mortgage industry is ripe for unionization,” Hammond said. “There are two issues developing. The first is the potential liability now confronting non-union employers for technical violations of labor laws that have not historically been applied to them outside of a union organizing campaign or existing union relationship.
Secondly, is the use of litigation to break down decades-old language that previously served as a barrier for employees to openly discuss potential issues that may lead to unionization. Industry leaders should pay close attention to what may be increased unionization efforts and plan accordingly to either avoid or embrace it.”
In the meantime, Hammond identifies the top 6 areas that should be included and reviewed in an employee handbook, regardless of industry:
• Employment at will/orientation period.
• Confidentiality policies.
• Benefits, including health care, vacation, holiday pay and eligibility requirements.
• Anti-discrimination/anti-harassment/ anti-retaliation policies.
• Work rules appropriately tailored for the organization.
• Social media policies.
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