Arizona Employee Handbook Introduction
The employee handbook stands as a foundational document in any Arizona employment relationship, serving a critical purpose in streamlining essential policies and procedures within the workplace. As an embodiment of the employer’s voice, the employee handbook is a platform for disseminating crucial information and setting clear expectations for employees. In the context of the employer-employee relationship, it provides a framework for knowledge and understanding , thereby minimizing potential areas of dispute. By clearly articulating key policies and procedures, Arizona employers can proactively minimize their exposure to legal liability and ensure fair treatment of employees.
For Arizona employers, the production and implementation of an employee handbook will prove to be an integral component of a robust, comprehensive employment policy system. What follows is a closer look at some of the most common and useful policies and procedures found in Arizona employee handbooks.
Employee Handbook Requirements in Arizona
While not required by federal or Arizona law, having an employee handbook that meets the legal requirements makes good business sense. The No. 1 reason employers use handbooks is for compliance with federal, state and local laws. If properly drafted, a handbook provides a written record consistent with applicable laws and applies fairly and uniformly to all employees. In addition, a well-drafted handbook:
Unlike most states, Arizona’s statutory scheme does address certain provisions that must be included in any employee handbook. Arizona Revised Statute (A.R.S.) § 23-363 requires all employers who employ employees in the construction industry to provide a copy of Arizona’s Workers Compensation Law to each of its employees. Arizona’s Workers Compensation Law must be included as part of any handbook or other written materials provided to employees.
Arizona Revised Statute (A.R.S.) §34-152(2) requires all employers in the state to provide proper instructions and safety rules adopted by the state industrial commission. In addition to the instruction and safety rules required by A.R.S. §34-152(2), Arizona Revised Statute (A.R.S.) §6-1109 requires employers who participate in the Arizona Industrial Commission’s Division of Occupational Safety and Health (ADOSH) program to develop and implement a written workplace safety program. Employers who are subject to ADOSH program must include a copy of their workplace safety program and the instruction and safety rules mentioned above as part of any employee handbook.
Arizona Revised Statute (A.R.S.) §6-1103 requires Arizona employers to report workplace injuries, illnesses or deaths to the ADOSH. Employers required to participate in the ADOSH program can comply with this provision by including a bullet point in any employee handbook that directs employees to follow the ADOSH reporting rules if they experience any type of workplace injury, illness or death.
California law provides additional laws that cover many of the laws that apply to Arizona employers, but Arizona law is much less comprehensive. For example Arizona is only one of eleven "employment at will" states in the U.S. Employee that got dissatisfied at their job in Arizona cannot change their minds and decide to leave and go back to work elsewhere.
Employers in Arizona must be aware of all the general and specific provisions state laws that apply in Arizona including all federal employment laws. Failure to comply with federal and state law could result in penalties, back pay and related awards or even criminal liability.
Employee Handbook Mandatory Policies
Regardless of whether a number of "optional" policies are included, there are three mandatory policies that should be included in every Arizona employee handbook:
1. Anti-discrimination policy.
Every Arizona employer should adopt a written anti-discrimination policy for the purpose of informing employees about the process for making internal complaints of discrimination or harassment, procedures for investigations of such complaints, disciplinary consequences of substantiated complaints, and provide an assurance to the employee that such complaints will be handled with sensitivity and confidentiality to the extent possible.
2. Anti-harassment policy.
Every Arizona employer should adopt a written anti-harassment policy for the purpose of educating its employees regarding its anti-harassment policy, providing the process by which complaints of discrimination and/or harassment can be addressed internally in a timely and effective manner, and set forth the process by which Human Resources or management will commence an internal investigation of any complaint concerning discrimination and/or harassment.
3. Leave entitlements.
Every Arizona employer should adopt a written leave policy or policies for the purpose of describing the leave entitlements that it provides to employees. In addition to FMLA leave, employers may also provide other types of protected leaves of absence. Such leaves of absence may include extended leave during a temporary lay-off or soft-landing program, leave for the care of seriously ill family members, or a temporary leave for educational purposes. Employers should document their reasonable expectations for performance reviews of employees who are on leave for several weeks or longer.
Employee Handbooks Arizona Recommendations
While there are no official Arizona handbook requirements, our experts have found in representing Arizona employers over many decades that the following recommended practices for crafting an effective employee handbook are invaluable: Each Arizona employer is unique and can vary widely from other employers. Therefore, the handbook should be customized to address the specific needs of the business. Legal counsel should review all handbooks to ensure compliance with all federal and state laws and regulations. Consistent terminology should be used throughout the handbook. For example, "Time Off" is more efficient than "Vacation Leave, Sick Leave, Holidays, etc.," particularly because many states and federal agencies have redefined sick leave over the last few years to include other forms of time off, such as maternity/paternity leave. Organize the handbook into chapters and use a table of contents that allows easy and quick reference to relevant sections. It is a best practice is to have a clear disclaimer and state that the handbook is not a contract of employment. Pursuant to Arizona case law a well-written handbook creates an implied contract and vague disclaimers have been found ineffective and binding on the employer. We also recommend that employers include a statement specifically stating that the employer retains the right to revoke or change any policy. Even well-intended progressive discipline policies required by various federal and state laws could expose employers to legal claims if the policy is not worded carefully. Handbooks should be accessible by being written in clear and understandable language. The longer the policy, the more critical it is that the meanings are clear. For example, avoiding references to ascertaining intent in order to determine "good faith . " Policies should alleviate any misunderstandings, such as over vacation accrual, and even "make-whole" provisions that an employee has been made whole could be challenged if not clearly defined. Are "benefit" and "general" leave understood to be the same? These examples draw attention to the real need to strive for clear and easily understandable policies. Employees should be encouraged to read the handbook, signing a form separately acknowledging receipt of it. We strongly urge requiring an affirmative acknowledgment of each and every edition of the handbook. Employers should be encouraged to call employee meetings, have the handbook reviewed line-by-line and allow employees to ask specific questions before signing the acknowledgment. Managers and supervisors should be trained in enforcing handbook policies and referencing them as appropriate. When problems arise, managers and supervisors should review the handbook with the employee to correct misapplication and encourage the employee to re-read their handbook. In addition, having each employee sign a copy of the handbook gives the employer a record of requesting and expecting employees to follow policies. The handbook should be reviewed at least annually for necessary updates, to add newly developed policies and to increase understanding of existing policies. Often handbooks are outdated shortly after publication and are forgotten until an employee brings up a specific topic. If this happens, it is too late to train managers and supervisors, update all employees and immediately distribute the new version of the handbook to reaffirm the company’s policies and expectations. Too often employees are confused and frustrated by an outdated handbook and may erroneously think the policies have changed and will be less likely to ask questions about certain policies.
Employee Handbook Revisions and Updates
Keeping an employee handbook up-to-date is a key component of an effective Arizona employment law compliance strategy. Given the frequency of legislative and judicial changes to employment law issues, ensuring that the handbook properly reflects the current state of the law is crucial. The failure to provide employees with accurate, clear and current information about their employment rights and responsibilities can have serious consequences in any employment-related dispute. As noted above, employers are not legally required to provide their employees with handbooks or detailed personnel policies, but if they do so, they are required to do it properly. Staying Current: The best way to stay abreast of recent legal developments relevant to the content of your employee handbook is to regularly monitor reputable, credible, law-related websites and blogs, like the Mesch Clark & Neary Employment Law Blog. In addition, subscribing to pertinent trade journals is a pragmatic way to stay current and informed about industry-specific legal developments. Lastly, attuned to the particularity of Arizona employment law, the Arizona Employer Advisory Council publishes a quarterly newsletter (The Arizona Employee Law Letter), filled with insightful and useful information. Revisions Reflecting Changes in Law: A typical provision contained in any standard employee handbook is a broad disclaimer setting forth your intention as an employer to follow all applicable laws and regulations. The law requires employers to provide employees with written notice of any "material change" in the employer’s policies and procedures, including those set forth in the employee handbook. Keeping track of new and pending legislation is key. In 2017, for example, Arizona legislators adopted a new statute clarifying the definition of "employer" for purposes of the state wage and hour laws. Arizona – like other states – conducted its first minimum wage and paid sick leave litigation of 2017 related to the implementation of the Fair Wages and Healthy Families Act (Arizona’s new minimum wage and paid sick leave law). Clearly, each of these developments and changes should be addressed in your handbook policies concerning wage and hour policies. Moreover, these revisions should be disseminated to your employees as required by law. If you fail to do so, you risk potential liability.
Employee Handbook Training and Notices
Even though your handbook policies are clear and compliant, and even presuming your employees have all signed their new hire handbooks, this is still not enough and does not complete the legal process on paper. All employers have a legal duty to train their employees on all of their policies. This is very important, particularly for the new hire handbooks. Otherwise, you can be blamed for willfully violating your own company policy if you get sued by one of your employees. You must train your employees on all handbooks and policies and be ready to prove it in court. For example, you likely have a policy that prohibits your employees from using the internet during work hours. You may legitimately fire your employee during the probationary period because your employee was surfing the net on work time. The fired employee may get the advice to sue you by a different lawyer who tells him he was fired for bad reasons such as age or gender and then your old lawyer who used to represent you told you the employee was probably right about the termination , so you should settle quick and at least pay for his lawyer fees on top of the severance. But the fired employee’s lawyer did not look at the employee handbook when filing the lawsuit and telling the employee he had good reasons to sue you and should get six months of his salary. What the fired employee’s lawyer did not know was that the company had a rule prohibiting all employees from using the internet during work hours. The fired employee had been verbally warned at least three times to stop using the internet at work and given a copy of the policy. So, if you provided evidence of the training, the fired employee would only be entitled to three day’s pay for each written warning without having to return to work, not six months’ pay. How do you properly train your employees? Most employers do it verbally during new hire orientations. Or employers require new hires to sign an acknowledgement of the handbook containing a detailed summary of all the policies, an agreement to return the signature page to HR, and a severability clause. Employers assume the employee received the training and the policies and failed to keep their signature page…good luck proving it! For a fraction of the cost of my hourly rate, I can answer all your questions about the clauses in an employee handbook and properly train your HR staff on how to distribute the handbook and obtain the employee signatures for all new employee orientations.