Oct 2022 - employee handbooks | Barron Law Office

October 2022: Why small businesses should have employee handbooks

I'm a small business owner in Pennsylvania who has less than 15 employees. Do I need an up-to-date employee handbook, non-discrimination policies, and other workplace documents in place?

The short answer is YES--and here are just a few reasons why.

Many of the federal anti-discrimination laws apply only to employers with 15 of more employees. (Be careful, though--counting the number of employees can be surprisingly tricky. And don't forget that some federal laws, like the Equal Pay Act and the Fair Labor Standards Act, are not limited by the number of employees an employer has.)

But the Pennsylvania anti-discrimination laws ("PHRA" for short) apply to all employers who employ 4 or more persons in PA. And for the most part, the legal rules that apply under the PHRA are the same rules that apply under federal law.

So, if you're a Pennsylvania-based business with 4 or more employees, act as if the federal anti-discrimination laws apply to you just as they do to larger companies.

Employee handbooks, non-discrimination policies, and other employment-related documents are very useful, proactive ways to avoid--or at least better defend against--discrimination claims and other lawsuits. Proactive employers are much better off than those who wait until after a claim is brought to put something in place.

Also, these kinds of employment-related documents reduce the risk that a disgruntled employee can later claim to have formed a contract with the employer based on a poorly-worded handbook or some other document the employer distributed.

So, all employers in Pennsylvania should have up-to-date handbook and related policies in place. No one wants to get sued. Having these documents in place is a best practice to minimize the risk of a lawsuit or, if a lawsuit is filed or threatened, puts the employer in the best position to fight back.

There's no one-size-fits-all way to structure these documents, so contact the Barron Law Office to make sure your documents and policies fit your company's specific needs.