Top 3 Costly Mistakes in Texas Employment Handbooks
MISTAKE #1:
Burying, omitting, or miswording a disclaimer about the at-will nature of the employee’s employment.
WHY IT’LL COST YOU:
Since Texas is an at-will state, there are only a few select ways in which a termination can be wrongful. However, if an employer’s handbook undermine or override the doctrine by making promises in writing, a handbook can become a quasi-contract.
EASY FIX:
Ensure there’s a disclaimer in your handbook about Texas being an at-will state, a definition of what that means, and that there’s no other written policy or statement in the handbook or anywhere else that contradicts that disclaimer.
MISTAKE #2:
If your policies do not comply with – or worse, contradict – leave requirements mandated by Texas or federal law, that opens Texas employers up to avoidable liability. A generic leave policy that focuses on federal law (ex. FMLA) just won’t cut it.
WHY IT’LL COST YOU:
Texas has statutory leave requirements for employers over and above federal law. Specific Texas law statutes should not only be mentioned, but honored or Texas employers risk claims filed against them to the Texas Workforce Commission or even a lawsuit.
EASY FIX:
Know, understand, and include Texas-specific policies in your employment handbook.
MISTAKE #3:
Overbroad policies can inadvertently but expressly violate employees’ rights. Specifically, policies prohibiting gossip and discussions about wages or reprimands or a requirement that employees be respectful are not a good idea for Texas employers to include in their handbook.
WHY IT’LL COST YOU:
These types of policies may violate the National Labor Relations Act and could conflict with certain whistleblower statutes under both the Texas Labor Code and federal laws. These policies are red flags to both state and federal administrative agencies.
EASY FIX:
Narrowly tailor policies to genuine business or workplace concerns and include disclaimers as to employees’ rights under the relevant Texas and federal law.