Top 10 Mistakes Houston Business Owners Make When Drafting Employee Handbooks
Creating an employee handbook is a necessity when establishing your company’s culture and rules. This guide sets expectations for everyone and can even protect you legally if issues come up. But writing a good handbook isn’t always simple, especially for Houston business owners. Houston has its own set of rules, unique industries, and a diverse workforce with different needs. If your handbook isn’t done right, it can lead to confusion, frustration, and even legal problems.
At Roger G. Jain & Associates, P.C., our lawyers have helped Houston businesses draft solid employee handbooks that lay out employees’ rights, responsibilities, and obligations to the business. With years of experience in civil court, attorney Roger G. Jain has helped businesses navigate various sensitive and potentially costly matters, as confirmed by his satisfied clients.
Here are the top ten mistakes to watch out for when putting together your employee handbook.
#1. Using a Generic Template without Customization for Houston-Specific Laws
While templates provide a starting point, simply filling in the blanks can leave your business exposed. Employment laws vary widely by state, and Texas has its unique rules. Houston employers, for instance, must clearly outline Texas’s “at-will” employment status, which allows businesses to terminate employees at any time, with or without reason, as long as it doesn’t violate anti-discrimination laws. To protect your business fully, consider customizing sections on employee rights, overtime policies, and at-will employment.
#2. Failing to Address Industry-Specific Needs
Houston’s economy is driven by big industries like oil and gas, healthcare, and tech, each with its own set of needs. For example, a tech company might need policies about data security, while an oil and gas company needs strong safety rules for dangerous work.
#3. Omitting Clear Anti-Harassment and Anti-Discrimination Policies
In a diverse city like Houston, a vague stance on anti-harassment and anti-discrimination policies is simply not enough. Clearly explain the behaviors that won’t be tolerated in your workplace, like harassment, discrimination, and even microaggressions. Define what these terms mean so everyone understands. Also, include a simple, easy-to-follow process for reporting any issues, so employees know their concerns will be taken seriously and addressed.
Having a clear stance not only protects you legally but also helps foster a culture of respect. When employees feel safe and supported, they’re more likely to stay engaged and loyal to your company.
#4. Ignoring Updates on Employment Laws
Employment laws change all the time. If you don’t review your handbook every year, it could get outdated and put you at risk for legal issues. For example, if there are changes to the Family and Medical Leave Act (FMLA) or Texas laws about pay, your handbook needs to be updated right away. Make sure to schedule a yearly review to keep your handbook in line with federal, state, and local laws. This will help prevent problems and fines down the road.
#5. Inadequate Policies on Health and Safety
Houston businesses must weather many different types of natural disasters. From hurricanes to intense heat waves, each one puts a strain on employees and businesses and requires special health and safety rules. Many businesses forget to include this in their handbooks, which leaves employees unsure of what to do during extreme weather events. Be sure to include guidelines for when and how your company will shut down, whether employees should report remotely, and any safety protocols for extreme heat.
#6. Not Clearly Defining Remote Work and Flexible Scheduling Policies
Flexible work has become the norm for many Houston businesses post-pandemic. If you offer remote or hybrid options, outline expectations for productivity, communication, and availability. Specify details on working hours, response times, and whether employees need approval for remote work.
#7. Overlooking Confidentiality and Social Media Guidelines
Confidentiality agreements and social media policies are particularly important for industries dealing with sensitive information, like tech or healthcare. Specify what constitutes confidential information, and provide examples of acceptable and unacceptable social media conduct related to work.
#8. Not Addressing Leave Policies and Time-Off Requests Clearly
Leave policies are one of the most frequently referenced sections in a handbook. Yet, due to Texas’s lack of state-mandated paid sick leave, many employers overlook it. Define sick leave, vacation time, and FMLA clearly. Include information on how and when employees can request leave and who to contact in the event of an unplanned absence.
#9. Failing to Outline Performance and Disciplinary Procedures
Setting clear performance expectations and consequences for poor behavior can help avoid confusion. Explain how your company handles performance reviews, including how often they happen, what will be evaluated, and how you’ll address underperformance. Be specific about warnings and terminations so your employees know what to expect. This will reduce the risk of wrongful termination claims.
#10. Neglecting Regular Employee Training and Policy Reinforcement
Your employee handbook shouldn’t sit on a shelf collecting dust. Conduct regular training sessions to remind employees of key policies and updates. Schedule these sessions annually or as needed, especially if policies change. This reinforces your commitment to employee development and company culture.
Contact Our Houston Business Law Firm
A well-drafted employee handbook is a powerful tool that can protect your business, engage your employees, and strengthen your company’s culture. Avoid these ten common mistakes, and you’ll be well on your way to building a handbook that meets the unique needs of Houston businesses and their employees.
The best way to draft a solid employee handbook is to work with our law firm. At Roger G. Jain & Associates, P.C., our attorneys can help you create a handbook that’s clear, thorough, and fully compliant with the law. Whether your business is new or well-established, this is a great opportunity to make an employee handbook that will be a valuable guide for your team. Reach out to us online or call 713-981-0600 to get started.
Roger Jain is a dedicated trial lawyer who assists his clients in the following areas of practice: civil litigation, business law, criminal defense, juvenile law, estate planning and family Law.