From the Editor
This time each year, many companies decide whether to give pay raises for the following year and how much they'll be. So is your company giving raises next year? If so, how much? What role does your company's HR department play in that?
Those questions -- and several more -- are part of our annual survey on raises. Please take a few minutes to complete the survey, and in the Dec. 15 issue of HR Hero Line, we'll report the results.
To take the HR Hero Line Raises 2007 survey, go to www.HRhero.com/survey/survey.cgi?raises2007
Web Editor
Wendi Watts
Webeditor@hrhero.com
Feature
Managing risk with policies, contracts
Excerpted from Michigan Employment Law Letter written by attorneys at the law firm Vercruysse Murray & Calzone, P.C.
by Robert M. Vercruysse and Gary S. Fealk
Most employers have personnel policies, employee handbooks, and the like. The policies should be reviewed periodically to make sure they're adequate, legal, and being followed. If you don't have written policies, you need them to protect you. Read on for a brief overview of the issues that you should address in the written policies and contracts with your employees.
No-solicitation rules
Employees have the right to discuss and solicit each other for union support on nonworking time in nonworking areas. But you don't have to let nonemployee organizers onto the premises if you have a lawful no-solicitation rule.
To protect against organizing campaigns, you should have a rule against solicitation by nonemployees on company property. The rule must be uniformly enforced — that means you must prohibit solicitation by any third party (not just a union).
Harassment and discrimination policies
It's essential to have your harassment and discrimination policies in writing. They must contain a complaint procedure. Your harassment policy should be distributed to employees and posted in a conspicuous place. A properly drafted harassment policy with a complaint procedure is essential to defending against harassment claims.
Commissioned salespersons
Your company should have a written agreement with all commissioned salespersons. The agreement should address when a commission is earned (e.g., when the product is shipped) and what happens when an employee leaves (e.g., no commission is paid for products shipped after the last day of employment). Otherwise, your company may be liable to the salesperson for commissions on blanket orders that are shipped long after the individual leaves.
Confidentiality agreements, trade secrets,
and covenants not to compete
For some salespersons, higher-level managers, and technical employees who have access to trade secrets, confidential business information, or customer lists, your company should consider whether to enter agreements that restrict their use of the information.
In some cases, you'll have a legitimate interest in restricting them from going to work for a competitor for a period of time. The contracts' enforceability is highly dependent on the facts relating to the employee's access to the confidential information or customers. Consult with counsel to be sure that you draft an enforceable contract.
Employment at will
Employees in some states are presumed to be employed at will. That means they can be fired without cause (other than for unlawful reasons, such as discrimination) at any time. To protect against employees claiming that they had a verbal contract providing that they could be discharged only for just cause, you should have a written policy stating that your employees are at will.
Family and medical leave
If your company is big enough to be covered by the Family and Medical Leave Act (FMLA), you should draft and distribute an FMLA policy. The statute provides you with compliance options.
For example, you can designate a calendar year or a rolling 12-month period to determine employee eligibility for leave. Also, you have a choice about whether to require employees to take accrued but unused vacation concurrent with their FMLA leave.
Plant or work rules
If you have any special work rules for the operation of your facility, you should put them in writing and distribute and post them. If you have a union shop, your contract may provide that management has the authority to draft reasonable work rules.
If that type of language isn't in your contract, you'll probably need to notify the union and provide an opportunity to bargain before implementing the work rules.
E-mail, Internet, and computer users
You should promulgate a policy regulating the use of your company's computers, e-mail, and Internet access. For example, limiting the computer use to work-related issues and prohibiting any employee from visiting sexually explicit or offensive websites or distributing that type of e-mail is advisable.
Arbitration agreements
Some companies would like employees to arbitrate all (or certain types of) employment disputes rather than face litigation. Give a lot of consideration to the types of claims that employees will be required to arbitrate.
Also, be aware that the courts have imposed various restrictions on the enforceability of arbitration agreements. To make sure that your agreement meets your needs and is enforceable, it's best to consult with counsel.
Employee handbooks
Your company should compile its policies into an employee handbook. To make sure that all employees are aware of the policies, you should distribute the handbook to them, and each employee should sign an acknowledgment that he received it.
A copy of the acknowledgment should be placed in his personnel file. Each time the policies are changed, you should obtain a new acknowledgment.
Illegal policies
Some employers draft policies that are illegal (even though they might make business sense). For example, some employers have policies against employees discussing their pay, but that type of policy violates the National Labor Relations Act (and the laws of various states). Seek advice from counsel to make sure your policies don't run afoul of the law.
Truck drivers
If you employ individuals who are subject to the U.S. Department of Transportation's regulations for commercial motor vehicle drivers, you're required to have a written drug- and alcohol-testing program, including random drug testing. If you want to promulgate a drug-testing policy for nondrivers and have a union, you'll have to bargain with the union over the policy.
Bottom line
Written policies and certain contracts with your employees can help to reduce potential liability. Make sure that whatever policies you have are enforced uniformly. When policies are enforced against some but not all employees, it may lead to litigation.
If you haven't done so recently, you should ask experienced employment law counsel to review your policies to make sure they protect you to the fullest extent possible.
Copyright 2006 M. Lee Smith Publishers LLC. MICHIGAN EMPLOYMENT LAW LETTER is intended to provide information but not provide legal advice regarding any particular situation. The information in this Law Letter is to make you aware of the implications of several contemporary problems. This Law Letter is not intended to be, and should not be regarded as, a legal opinion or legal advice. It is simply not possible or prudent to offer legal advice or a legal opinion without a prior thorough investigation and analysis of the facts attendant to any specific situation.
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Employers Forum
What is your reference policy?
I'm interested in what people do as a policy for references for former employees. Do you only confirm dates and position? Do you do more? I constantly struggle with this, and know the reasons for each position, and am always interested in where others stand on this.
Caroliso , MA
Visit Employers Forum to join other discussions or post a question of your own.
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HRhero.com Subscribers Area Resources
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Tool: HR Sample Polices and Procedures
M. Lee Smith Publishers LLC has teamed up with Margaret Morford, an attorney and President of the national consulting firm 
theHRedge., Inc. to design a top-notch Policy and Procedure Manual for our Employment Law Letter subscribers.
We created this manual to be more than just a template of policies. It contains commentary on what you should consider including in your policies as well as practical advice and suggestions. Each policy is available in RTF format so you can save and edit the policy on your computer.
How to access:
1. Log into HRhero.com Subscribers Area: www.HRhero.com/lc
2. In middle column, under HR Tools, click "Sample Policies & Procedures"