This blog is the first of a five part series.

Setting out employee policies through an employee handbook or manual is not typically necessary for a husband and wife business which has no other employees, but most small businesses can benefit significantly from such an investment. While it is not recommended that business owners attempt to develop policies addressing every possible scenario that may arise, a concise, well-written employee handbook can save employers a great deal of time and money over the years.

Here is the first of the top 5 reasons we believe most small businesses should develop an employee manual:

REASON #1: An Employee Handbook/Manual Aids in Reducing Unemployment Costs.

When we hire employees, we rarely consider or plan for the day when we may need to terminate their employment. It is human nature to hope that everything will go smoothly, but most of us know that is not always the case. Sometimes employees don’t show up for work, they misuse company assets, or incur substantial unauthorized overtime, which an employer must pay whether it is authorized or not. If the small business owner terminates an employee for such conduct and the employee was never provided written policies indicating they might be fired for these infractions, the state unemployment commission is likely to grant the former employee’s application for unemployment benefits. As a result, the employer’s unemployment tax rates increase to pay for those benefits.

On the other hand, where an employer has clearly communicated employee policies to their workers through an employee handbook or manual and can show that the employee intentionally violated the employer’s policies, there is a much greater chance that an application for unemployment benefits will be denied, saving the employer money since their unemployment tax rates remain lower when no claims are paid against their account.

Don’t throw money down the drain on federal and state unemployment tax, protect your small business against specious unemployment claims by having your employee policies memorialized in an employee handbook or manual today. The small business attorneys at Gehres Law Library are experienced and passionate about helping small businesses save time and money. Call us today.

Feel free to follow us on Facebook, Twitter, or LinkedIn, where we will be posting a link to the next blog in our series – REASON #2: An Employee Manual Provides for a More Organized and Efficient Work Environment.