Pub. 12 2013-2014 Issue 2

N e w J e r s e y C o a l i t i o n O f A u t o m o t i v e R e t a i l e r s s u m m e r 2 0 1 3 20 new jersey auto retailer Policies, Procedures and Protection: Why Every Dealership Should Have An Employee Handbook By Angelo J. Genova, Esq. and Dina M. Mastellone, Esq. For some, having an Employee Handbook may seem forbidding. However, Employee Handbooks are critical communication tools for dealerships to set forth corporate goals, policies and objectives as well as the expectations demanded of employees and what they, in turn, can expect from their employers. An effective Employee Handbook also ensures fair treatment for employees and, when drafted correctly, can effectively limit the dealership’s liability from employment discrimination, harassment or other legal claims. Below are the top 10 policies that should be contained in a dealership’s Employee Handbook: 1) At-Will Employment Disclaimer. New Jersey is an “employment-at-will” State, meaning that either an employer or employee may end employment at any time, without reason or notice, for any reason not expressly prohibited by federal, State or local law or a clear mandate of public policy. A dealer- ship’s “at-will” employment policy should be in bold, conspicu- ous letters so as to separate it from the rest of the Handbook. There should also be a disclaimer stating that the Handbook is merely a recitation of the dealership’s policies and in no way creates a contract for employment. An acknowledgement form, also containing the at-will disclaimer, should be signed by the employee evidencing the employee’s receipt and review of the Handbook. 2) Equal Employment Opportunity (EEO): An EEO policy statement has become an essential feature of most Handbooks. An EEO policy confirms that the dealership will provide equal employment opportunity to all persons without regard to race, color, sex, age, disability, religion, national origin, veteran status and/or any other status protected by applicable federal, State or local laws. This policy applies to all areas of employ- ment, including recruitment, hiring, training and development, promotion, termination, layoff, compensation, benefits and all other conditions, terms and privileges of employment in accordance with applicable federal, State and local laws. 3) Non-Harassment and Discrimination: Both federal (Title VII of the Civil Rights Act of 1964, the Age Discrimina- tion in Employment Act, the Americans with Disabilities Act) and State law (the New Jersey Law Against Discrimination) prohibit discrimination, harassment and retaliation in the workplace based on a person’s race, color, religion, national origin, sex, age, disability, veteran status or any other clas- sification protected by federal, state or local law. This policy should not only be contained in the Handbook but also should be separately distributed to each employee for signature. The policy must cover all types of workplace harassment and be written in plain English and not legalese. It is important that the policy confirms a zero tolerance for discrimination, harass- ment and retaliation, not just by supervisors and employees, but also by vendors and customers. It is also important that

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