Employee Handbooks for Credit Unions

Whether you have four employees or four hundred plus, it’s important to have documentation communicating the appropriate ground rules for your organization. A well-considered, laid out employee handbook can communicate the Credit Union’s expectations of its employees by setting forth the policies, procedures, employee compensation and benefits and additional terms of the employee relationship.

While handbooks will vary, depending on the size of an employer and the unique elements of your Credit Union, there are certain elements that should be a part of every employee handbook and certain elements should be carefully considered to avoid unintended pitfalls. For example, at the outset, your handbook should clearly state it is not an express or implied contract and that all employees within your organization, unless otherwise provided, are at-will employees. Such a disclosure can assist in avoiding claims that an employee interpreted it as a contract guaranteeing employment. In most states, employment is at-will (i.e. terminable at the will of the employer or employee).

Other common oversights relate to addressing paid time off. For example, if you do not intend to pay out unused vacation time upon employment termination, you must specifically state this position in your employee policy. Under Ohio law and many state laws, vacation pay is considered a deferred payment of an earned benefit and an employer generally cannot withhold such accrued vacation pay at the end of the employment period. However, unlike wages, since accrued vacation pay is a deferred benefit, an employer can implement a policy under which an employee forfeits unused vacation days. Your policy must be clearly written providing that vacation time is forfeited upon resignation or discharge and that you may withhold such unused vacation pay upon termination.

Another common challenge for employers relates to social media policies. In this vein, your policy must weigh concerns related to the Credit Union’s image and member confidentiality with constitutionally protected speech. In an effort to cover all bases, many employers’ social media policies tend to be broad and ambiguous. However, the National Labor Relations Board (NLRB) will scrutinize any provisions in your policy which chill protected speech and overbroad policies can be considered to quell such protections. For example, under federal law, employees have the right to criticize their company and its working conditions. So, having a social media policy which includes a provision simply stating that an employee cannot talk about the company will be considered illegal.

The above three examples highlight some of the most common issues that arise with crafting an appropriate handbook. Of course, a myriad of considerations should be considered when drafting and amending your handbook such as antidiscrimination policies, safety and security, harassment and retaliation, to name a few. In order to balance all of these considerations and stay legally compliant, it is imperative to seek legal counsel before implementing and amending your policies and handbook. By doing so, you can clearly outline your credit union’s policies and general rules of conduct and also protect your legal rights and responsibilities as an employer.