It Says So Right Here!

Another update from the Jungle….

Jane started her business after being downsized by her corporate employer.  She knew she wanted her business to be different from the bureaucracy of her Big Biz employer and vowed to avoid the burden of written policies.  

3But as she adds employees it becomes clear that a lack of written policies is bad for the bottom line. No written policies allow Evan to claim that he doesn’t know he is supposed to start work at 8:30 am. He thinks showing up by 10 am is okay as long as he gets his work done.  

4Jane decides she needs something in writing. She digs out an old copy of Big Biz’s employee handbook. She customizes it by changing the employer’s name, correcting a few typos, and changing the font.  Then she gives a copy to each employee and receives a signed acknowledgement from each employee.

None of the employees actually read the employee handbook, of course, until they need to. Evan reads the section on progressive discipline after Jane gives him a final written warning about his attendance.

1Meanwhile, Audrey discovers she’s pregnant. She hauls out her copy of the handbook, which is propping up a corner of her desk, and unfolds it to read the section on the Family Medical Leave Act (FMLA). She tells Jane she wants to take FMLA leave to have her baby and asks for the leave request form.  

Jane doesn’t have any FMLA forms. Her internet search eventually leads her to the U.S. Department of Labor (DOL) website where she learns the horrible truth about the FMLA. It applies to companies with more than 50 employees. Her Little Biz shop has 20 employees.  The news is so disturbing that she drinks half a bottle of wine while she thinks about her options.

What should Jane do next?

  1. She can collect every copy of the handbook and burn them in the parking lot knowing that most of her employees never read it.
  2. She can tell Audrey that the FMLA section of the handbook is a mistake because that law doesn’t apply to Jane’s business.
  3. She can grant FMLA leave to Audrey in accordance with the handbook policy. Then she can immediately revise the handbook to delete information about employment laws that don’t apply to her company.

The above scenario is a common problem for small business owners who lack familiarity with employment laws. The lack of familiarity can fix one problem while creating many more problems.

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