Components of Employee Handbook or Personnel Manual

An employee handbook, also known as a personnel manual, is one of the most common methods employers use to communicate their personnel policies and benefit programs to employees. It should set forth in detail the benefits, policies, and disciplinary rules of the company and should be updated periodically.

An employee handbook cannot replace personal communication, but it is an effective means for informing your employees about vital information. It is safe to say that the advantages of a handbook far outweigh any potential drawbacks.

When drafting an effective employee handbook, be sure that the manual does not constitute a contract of employment. In most states, absent language to the contrary, the employer/employee relationship created is called "employment-at-will." This means that an employer can dismiss an employee or an employee can resign at any time, for any reason. However, once an employment contract exists, employment is governed either by a stated term or by a length of time implied in the agreement. Therefore, it is difficult to terminate an employee prior to the end of the term without just cause and due notice. An employee handbook, if not drafted carefully, can create an implied contract of employment.

To retain the freedom to terminate the relationship at will and help avoid wrongful discharge claims, it is recommended that all employee handbooks contain a waiver or disclaimer such as the following:

This handbook does not constitute an employment contract in whole or in part, and the association reserves the right to add, amend, or delete any policy or procedure stated herein at any time.

In addition, to avoid implied contract rights, employers should avoid using the following words in their handbooks, and, for that matter, in job application forms, training manuals, letters of employment, company policy statements, and employee evaluation forms:

• just cause
• good cause
• good faith
• guaranteed
• long-term
• secured
• job security
• permanent
• career path
• job tenure
• due process
• annual review

 

For further information on this subject, see How to Comply with Federal II, Employee Laws (Washington, D.C.: London Publishing, 1998)

Again, employment laws differ from state to state. Consult association counsel on all aspects of creating your employee handbook, especially when forming such , waivers and disclaimers.

Remember, you will have to live by everything you put in your employee handbook, so be very careful.

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Employment in General

• Equal Opportunity
  Your employee handbook should start by stressing that the association is an equal opportunity employer, because equal opportunity in employment is the law. Generally, employment must be available to all persons without regard to race, color, religion, national origin, age, sex, marital status, or physical and mental handicaps unrelated to job performance. Some state and local legislation protects additional classes of individuals. It is important that you consult state laws to ensure full compliance.
  
• Employee Classifications
  Next, it is important that the handbook clearly define the various types of employees.

Exempt and Nonexempt
These classifications are defined and administered under provisions in accord with the Fair Labor Standards Act. The Fair Labor Standards Act and its regulations are extremely detailed and complex. Generally, however, the act provides that employees working under immediate supervision and performing primarily assigned duties, rather than supervising others, will be classified as nonexempt. Nonexempt employees are guaranteed at least minimum wage and receive overtime pay.

Conversely, employees described as executive (involving policy-making and/or overall supervision) or administrative (primarily assisting executives and/or supervis-ing other employees—not secretarial duties) are generally classified as exempt. The exempt classification also includes professionals whose supervisory or administra-tive responsibilities are limited, but who require advanced training in a specialized discipline such as law, economics, research, governmental affairs and legislation, library science, systems analysis, or computer programming. Caution: The duties performed by an employee will determine whether that individual is exempt or non-exempt, not the employee’s job title.

Nonexempt employees should be paid an hourly wage computed on the basis of actual time worked. The overtime rate is one-and-one-half times the employee’s base hourly rate, for all time worked in excess of 40 hours in one week.

Exempt employees, on the other hand, should be paid a monthly or annual sal-ary. Exempt employees are often granted compensatory time off for any overtime worked in excess of the normal work week. Prior arrangements are usually required by procedure for taking such compensatory time. (Note: Compensatory time may not be provided to nonexempt employees in lieu of overtime pay.)

Full-Time/Part-Time
Employees are normally considered full-time unless otherwise qualified under one or more of the following criteria:

• Individuals working less than a specific number of hours (generally estab-lished by your state’s employment security department and/or as it relates to requirements of the postal authorities—20 hours) per week on a regular basis.
• Individuals working more than the minimum hours but hired on a temporary basis with the understanding that employment would be for less than one year.
• Other arrangements to consider would involve independent contractors or subcontractors. If you choose to cover this topic, consult with association legal counsel or accountants.

 

• Federal Employment Laws
  In your employee handbook you may want to notify employees that the association complies with the following laws in its employment practices:

Americans with Disabilities Act
This act prohibits discrimination against the disabled and dictates to employers the need to create reasonable accommodations so disabled employees can perform jobs in the workplace. The Equal Employment Opportunity Commission (EEOC) has developed compliance regulations. Physical settings in buildings and workstations may have to be modified to reason-ably accommodate handicapped employees. If you have any questions about this, contact the NATIONAL ASSOCIATION OF REALTORS®’ Legal Affairs Department at 312/329-8374, or its Human Resources Division at 312/329-8284.

Age Discrimination
In 1967, Congress passed the Age Discrimination in Employment Act (ADEA) to prohibit discrimination in employment because of age in such matters as hiring, job retention, compensation, and other terms, conditions, and privileges of employ-ment. The ADEA establishes as a matter of basic civil rights that people should be treated in employment on the basis of their individual ability to perform a job rather than on the basis of stereotypes about age. The ADEA has created a new awareness concerning discrimination against the elderly and has spurred academic research, which has concluded that chronological age alone is a poor indicator of ability to perform a job. Originally enforced by the U. S. Department of Labor, the president, by executive order in 1978 with the concurrence of Congress, shifted ADEA en-forcement activities to the EEOC.

The ADEA prohibits most employers, employment agencies, and labor organ-izations from discrimination in employment practices against persons over the age of 40 on the basis of their age. In a highly publicized change in 1978, Congress amended the ADEA and raised the upper age limit on coverage under the act from 65 to 70. It also added a prohibition against forced retirement, based on age, of employees below the age of 70.

Then in 1986, Congress unanimously approved another major change to the ADEA by removing the mandatory retirement age of 70 for most of the nation’s pri-vate sector workers.

By removing the upper age limit, the legislation requires covered employers to continue the same group health insurance for workers over age 70 as they offer to younger workers. The law applies to employers having 20 or more employees, pub-lic employers, employment agencies serving such employers, and labor organiza-tions with 24 or more members. The operative language of the statute makes it unlawful for an employer to do the following:

• • Fail or refuse to hire or discharge any individual, or to discriminate against an individual with respect to compensation, terms, conditions, or privileges of employment because of age;
  • Limit, segregate, or classify employees in any way that would deprive or tend to deprive any individual of employment opportunities, or otherwise adversely affect his or her status as an employee because of age; or
  • Reduce the wage rate of any employees to comply with the act.

Family and Medical Leave Act
The Family and Medical Leave Act took effect on August 5, 1993, and generally applies to all private employers with 50 or more employees. This act requires covered employers to allow employees up to twelve weeks of unpaid job-protected leave in any 12 month period:

• • To care for a child born to or placed for adoption or foster care with an employee
  • Because of the serious health conditions of the employee
  • Because of the serious health condition of an employee's immediate family member (parent, spouse, or child)

Occupational Safety and Health Administration Ergonomics Program Standard
Occupational Safety and Health Administration adopted its Ergonomics Program Standard on November 20, 2000, and put it into effect January 16, 2001. The purpose of this standard is to reduce the number and severity of musculoskeletal disorders (MSD's). This new rule contains stringent requirements for most nonconstruction employers with 11 or more employees, to identify and to abate MSD's. At a minimum, employers are required to provide employees with basic information about MSD's and their signs and symptoms and how to report an MSD. However, a "single incident" could trigger requirement for a full ergonomics program. The elements of this program are:

• • Management leadership
  • Employee participation
  • MSD management
  • Job hazard analysis
  • Hazard reduction and control measures
  • Training

The handbook is an appropriate place to convey this information.

Since this rule is new and complicated, proper legal guidance should be sought.

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Employment Issues

The employee handbook should also address the parameters of employment. Some recommended topics are as follows.

• Compensation
  Salaries or wages are usually set by management based on the importance and value of the position to the organization. Length of employment is often recognized, but compensation should probably be tied to the importance of the position.
  
  Salary/wage increases are generally determined by merit; however, cost of liv-ing adjustments are often considered. Merit increases may not necessarily be tied to an increase in work load, except as that may increase the importance or value of the position or person.
  
  A policy should be set to define how and when employees are to be paid. State laws should be consulted to determine any restrictions on the timing and method of pay.
  
• Performance Review
  The mechanics of a performance review and the basis for judgment may vary widely, depending on the background or experience of the employer or the purpose of the review. At any rate, a policy providing for periodic review of employees should be established to offer the opportunity for evaluation and constructive com-ments by both parties on a one-on-one basis.
  
  Design the review to evaluate personal performance as well as to discover pos-sible procedural inefficiencies or other flaws in the system. The review is often the major vehicle for discussing adjustments in salary or wage benefits and promotions. A REALTOR® association policy should adequately outline the frequency of perfor-mance reviews as well as their scope.
  
• NAR’s Professional Liability Insurance
  The NATIONAL ASSOCIATION OF REALTORS® maintains a Professional Liability Insurance Policy for REALTOR® associations. All of the National Association’s con-stituent REALTOR® associations are eligible for coverage under the program. Cover-age is extended only to those REALTOR®associations that have had their governing documents reviewed by the National Association’s Board Policy and Programs Divi-sion and have a letter on file from that division indicating that their governing docu-ments and operations conform to the Constitution and Bylaws of the National Association and the policies adopted (and amended from time to time) by its board of directors.
  
  Under this policy, claims expense coverage is available for employer/employee suits against a REALTOR®association and its directors and officers only if the REALTOR®association has adopted, and in good faith follows, the National Association’s Employer/Employee Policy Guidelines.
  
  While you may pattern your handbook to preserve the employment-at-will sta-tus, a progressive approach to discipline, as outlined in the guidelines, must be fol-lowed to ensure wrongful termination coverage under the National Association’s Professional Liability Insurance Policy. In attaching the guidelines to your hand-book, you may want to insert the following disclaimer:
  These guidelines are not intended to and do not create a contract of employment. Policies and guidelines may be revised at any time at the employer’s sole discretion.
  
• Disruptive or Illegal Acts
  You should specify the association’s position on disruptive or illegal acts. You may wish to include prohibitions against, but not limited to, the following:
  • Stealing, deliberately damaging or defacing association property, or the personal property of another employee
  • Possessing dangerous weapons or explosives
  • Violating criminal laws or being convicted of a felony
  • Fighting, throwing objects, or participating in horseplay, practical jokes, or other disorderly conduct that may endanger the well-being of an employee
  • Using profane or obscene language
  • Being absent or tardy to an excessive degree
  • Participating in any act that may be considered immoral, indecent, or inap-propriate and that reflects negatively on the association
  • Engaging in insubordinate behavior, including refusing to carry out or obey reasonable directives or assignments
  • Willfully falsifying information on employment applications, time sheets, expense reports, or other association documents
  • Participating in other practices that may be inconsistent with the ordinary and reasonable rules of conduct necessary to the welfare of the association and its employees
  • Violating any of the other policies put forth in the handbook
    You should state that an employee who engages in prohibited conduct will be subject to disciplinary actions, which may include discharge.
    
• Alcohol and Drugs
  Associations should establish an alcohol and drug policy to ensure that employees report to work in a condition fit to perform their duties safely and efficiently. The policy should include the following:
  • Define illegal drugs. Drugs include, but are not limited to, marijuana, cocaine, crack, phencyclidine (PCP), heroin, LSD, amphetamines, and other stimulants, barbiturates, and other depressants.
  • State that possession, distribution, or sale of illegal drugs is strictly prohib-ited. Also state that such activity will result in disciplinary action up to and including termination.
  • Define the specific circumstances under which alcohol may be consumed during REALTOR® association functions Employees must conduct themselves in such a manner that they do not represent a danger to themselves, other employees, the general public, or the association’s reputation.
  • Define association policy on prescription drug medication. Employees must inform their supervisor if they are taking prescribed medications that may cause side effects that could impact on vigilance, judgment, coordination, or job performance.
  • Provide guidelines for the right to search an employee and his or her per-sonal belongings and work areas for alcohol or drugs. A refusal of such a search is insubordination and may subject the employer to discipline, including the possibility of termination.
  • State whether the association will conduct drug and/or alcohol testing on employees if reasonable cause exists. If so, refusal is insubordination and may subject the employee to discipline, including the possibility of termination.
    
• Harassment
  Your association should have a written policy prohibiting harassment of employees. Harassment is any verbal or physical conduct of a harassing nature. This can include requests for sexual acts or favors, unwelcome sexual advances, or any other conduct with the purpose or effect that unreasonably interferes with an individ-ual’s work performance, or creates a hostile, intimidating, or offensive work environment.
  
  Racial, religious, ethnic, or sexual harassment is illegal. For this reason, make sure that employees do not engage in such harassment or in any behavior toward other workers that could be viewed as harassment. Because harassment is a serious offense, employees will be subject to serious discipline, which may include termi-nation, if they are found to have engaged in such conduct.
  
  In the event of such harassment, employees should be encouraged to contact their supervisor, a human resources employee, or association counsel.
  
  Based on two rulings handed down the same day, Faragher v. City of Boca Raton and Burling Industries v. Ellerth, the US Supreme court has strongly encouraged employers to exercise reasonable care to prevent sexually harassing behavior. Having a written and widely distributed policy against sexual harassment provides an important defense.
  
  A written sexual harassment policy should include the following:
  • Define sexual harassment. Typical1y, sexual harassment includes unwelcome sexual advances; unwelcome requests for sexual acts or favors; unwanted physical conduct; display of sexually explicit or suggestive materials; and other verbal or physical conduct that has the purpose or effect of unreason-ably interfering with an individual’s work performance by creating an intim-idating, hostile, or offensive working environment.
  • State that sexual harassment in all forms is strictly prohibited and may result in termination of the relationship with the REALTOR® association.
  • Establish a detailed complaint procedure. An individual who believes he or she has been sexually harassed by another employee, a member of the association, or by a guest or visitor of the association should bring the prob-lem to the attention of his or her supervisor, a human resources staff person, an attorney, or the executive officer.
  • Encourage persons witnessing acts of harassment to report them in confi-dence and without fear of reprisal. Keep the identity of the individual accused of sexual harassment strictly confidential. Information regarding the sexual harassment charge will be made known only to an individual directly involved either as a party, witness, an investigatory team member, or the executive officer.
  • Provide for prompt and vigorous investigation. State that any employee engaging in sexual harassment is subject to severe discipline, including ter-mination. Authority for the final resolution of all charges and the determina-tion of appropriate sanctions rests with the executive officer.
  • State that appropriate disciplinary measures may be taken against the employee who brought the complaint, if the sexual harassment complaint is found to be totally and completely without basis.
  • Provide guidelines for follow-up to ensure the harassment has ceased and to find out if retaliation has occurred. A REALTOR® association may provide counseling or other disciplinary measures to employees charged with sexual harassment.
  • Distribute policies to employees. Guidelines should specify a source for staff to contact to learn more about their rights.
    
• Conflict of Interest
  A conflict of interest occurs when an employee or any related party (e.g., a company, a partnership, affiliates, management, or members of the employee’s immediate family) is in a position to profit directly or indirectly because of his or her position with the association. Your association should have a written policy for-bidding conflicts of interest.
  
  Such a conflict can exist even if an employee’s actions do not adversely affect the association. Instances in which a conflict of interest might exist include but are not limited to the following:
  • Purchasing equipment, supplies, or services for the association
  • Purchasing, selling, or leasing property for the association
  • Receiving gifts, entertainment, loans, or preferential investment opportunities
  • Using confidential information

Encourage employees to disclose, in writing if possible, a situation that may present a possible conflict of interest so that the association can review it.

• Smoking
  Depending on state laws, you may be required to have a written smoking pol-icy. Because research has provided overwhelming evidence that primary and second-ary tobacco smoke is injurious to your health and that smoking creates a fire hazard, you may wish to establish such a policy for employee and association members. You may wish to limit smoking to designated areas, ask that persons smoking use a “clean air machine,” or prohibit smoking on the premises.
  
• Salary Continuance for Disability
  It is important to establish a policy addressing the question of salary continu-ance during disability and under what conditions salary will be paid. Any such policy must comply with the requirements of the Pregnancy Discrimination Act of 1978.

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Work Performance Expectations
The association should establish and address in its employee handbook the following standards of conduct.

• Working Hours
  A definition of the work week should include the days and the hours an employee must be present and available for performance of assigned duties.
  
  Employees should be permitted periods of time away from their work routine. Some examples would include time for lunch and for rest periods and coffee breaks. Such periods could be formally set with specific time allotments or be less formal and depend on work flow and deadlines. In either case, provisions for personnel to cover important workstations should be established to maintain uninterrupted service to members and the public. State and federal laws restrict the number of hours an employee may be required to work without a rest period and should be consulted if an unusual work schedule is contemplated.
  
  Overtime is occasionally necessary to complete tasks important to the function of the association. Overtime is generally considered time worked beyond 40 hours in a given week (including paid holidays). Such time could precede or follow the normal work day or be scheduled during a weekend. In any case, an overtime policy should be detailed in the handbook, including the approval process. At the time of employment, it would be appropriate to inform employees that they may be expected to work overtime.
  
  Occasionally, circumstances arise that necessitate certain staff members to work a split week, split day, or some other schedule. When these situations occur, explain expectations clearly and provide appropriate schedules.
  
• General Office Procedures/Priorities
  Standard procedures have generally been set regarding the handling of corre-spondence, ordering of supplies, meeting schedules, operation of office equipment, use of company-owned vehicles, and so on, to ensure maximum effectiveness, effi-ciency, and safety. Such procedures and priorities should be formalized in writing and should be part of a staff member’s job description.
  
• Staff Meetings
  Such meetings are often useful to ensure that the entire staff or specific depart-ments are aware of new programs, upcoming events, or changes in the normal routine. Additionally, staff meetings can be used to air problems or discuss more efficient ways to handle certain tasks or situations. Meetings may be regularly scheduled or called as needed.
  
• Industry Knowledge
  While an employee is not expected to have extensive knowledge of the real estate industry, it is to the advantage of employees and the association for employees to have some basic understanding of current events affecting the industry. In accor-dance with this philosophy, it may be appropriate to encourage or expect employees to read publications that keep them abreast of information needed to serve the mem-bership. This information is often found in newsletters, minutes, brochures, and publications of the state and national associations. Establish a policy to satisfy man-agement’s expectations of this requirement.
  
• Courtesy
  Courtesy is an expectation from all. The major function of a REALTOR® association is to provide service to its membership and the public. Simple deeds such as a cheerful greeting, a pleasant smile, and a sympathetic ear can help estab-lish and maintain the proper atmosphere essential to an effective office.
  
• Personal Telephone Calls
  Personal telephone calls (outgoing and incoming) are either allowed or not allowed during working hours. If allowed, they should be governed by specific rules and conditions. With reference to business calls, procedures should be adopted to establish an efficient routing system to ensure that appropriate staff members receive their calls or messages quickly.
  
• Personal Visitors
  Like personal phone calls. if personal visitors are allowed, careful controls should be established.
  
• Staff Grievances
  If problems or grievances develop among employees, a forum should be available to air them. Since the executive officer or the direct supervisor of those involved is responsible for those staff members’ performance, it would be appropri-ate for one or both to be involved in mediation efforts. A procedure allowing the executive officer to have the final word should be included.
  
• Personal Appearance
  Personal dress of employees sets the atmosphere and the image of the office. During normal working hours, proper attire suitable to a business environment or an employee’s job description should be expected. After hours or on weekends, when employees are not expected to work with the membership or the public, dress requirements could be relaxed. Employees should also be informed about the proper attire at special events, such as dinner meetings or awards banquets.
  
• Office Appearance
  The appearance of the office reflects the attitude and image the organization wishes to project to the membership and the public. A policy should define manage-ment’s expectations about workstation appearance. Policy and procedures should be adopted to cover employees’ authorized use of other facilities (lounges, kitchens, mail and print rooms, conference rooms, reception areas) that may serve multiple purposes benefiting employees. Manage-ment may wish to establish specific procedures concerning smoking and eating in office areas.
  
• Occupational Safety and Health Act
  Employees should be expected to comply with provisions of the Occupational Safety and Health Act as it applies to the association’s function. Management is responsible for ensuring that employees are familiar with the applicable provisions of the act.
  
• Tardiness
  Punctuality is expected not only as a matter of efficiency, but because tardiness is unfair to those who report to work on time. Unavoidable lateness should be explained to the executive officer or the immediate supervisor, including pertinent circumstances. A pattern of tardiness could affect salary increases or even continued employment.
  
• Absences
  Employees are hired because they are needed. As with tardiness, absences are unfair to fellow employees and affect the performance of the entire staff as a team. Advance notice of an absence should be offered when possible. There are a variety of absences that could be covered by policy as it pertains to the management posi-tion. Common absences include illness or injury on the job; illness or injury away from the job; personal business; jury duty; and funerals.
  
  It may be appropriate to establish policies concerning leaves of absence, such as military or maternity. A maternity leave policy should be reviewed by legal coun-sel to ensure its compliance with the Pregnancy Discrimination Act of 1978, the EEOC’s Guidelines on Discrimination Because of Sex, and any applicable state family leave legislation. A given number of days are often allowed for personal ill-nesses during any calendar year. The number of excused days could vary based on length of employment or seriousness of the illness. In some circumstances, it is helpful to offer incentives for staying healthy.
  

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Personnel Records
Maintaining accurate and up-to-date personnel records is an important, as well as mandatory, aspect of record keeping. Examples of documents that should be main-tained on file include the employee’s original job application, resume, salary history, performance appraisals, benefit elections, and other personal data. (For specific information on file maintenance, see Appendix E.) A specific policy should be in the handbook that states when an employee can see his or her file and outlines who can access the file. All requests to review these files should be handled by the association’s human resources division or appropriate staff person. A policy should be established to encourage employees to inform that person of changes in address, telephone number, and marital status, as well as whom to contact in case of an emergency.

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Employee Benefits
Employee benefits are an important factor in modern compensation packages. Such benefits sometimes serve as easy ways to adjust for inflationary changes and, fre-quently, these incentives have more value than comparable cash benefits or salary adjustments.

REALTOR® association executives should pay close attention to these issues and develop a workplace culture that addresses not only member needs, but also the needs of their most important asset, their staff. REALTOR®associations must have ongoing programs to allow staff to compete for talent, and then retain and motivate that talent. Institutional knowledge is a precious commodity that usually cannot be purchased from the outside. REALTOR®associations must determine the proper mix of institutional knowledge versus technical talent and then do everything they can to retain it.

A competitive benefits package is often one way to recruit and retain talented and dedicated workers. Benefits, such as the following, should be addressed in the employee handbook.

• Vacations
  Time off for an employee is generally beneficial to both the employee and the employer. Any vacation policy should be supplemented with procedures that cover requirements for advance notice; eligibility; length (including the number of days that may be taken at one time); and provisions, if any, for vacation days not taken in a given period. There are certainly other conditions to consider, such as emergency leave and whether such leave should be granted with or without pay.
  
• Holidays
  The association should have a specific policy regarding which hol-idays it will observe. This policy should determine whether employees are paid for holidays or other days on which the association office is closed.
  
  Additionally, consider what practice to follow if a recognized holiday falls on a nonworking day or a weekend.
  
• Insurance
  Insurance is another noncash benefit that offers psychological as well as financial security and can retain employees more than perhaps an equivalent salary increase.
  
  Hospitalization seems to be the most attractive insurance package for employees. Coverages and administrative programs vary. Group programs may be as small as coverage for one association office or as broad as coverage for an entire metropolitan area, state, or nation. The program could be administered through an endorsement or contract with a commercial carrier, such as Blue Cross/Blue Shield or Prudential, or other alternatives such as self-insurance programs and health main-tenance organization (HMO) plans.
  
  Plans are available with varying deductibles. The options available to the organization give rise to a multitude of strategies as they relate to policy. Perhaps varying degrees of coverage can be available based on lon-gevity or value to the association.
  
  Group life insurance programs can be an additional inducement, or a stand-alone benefit to retain employees. Will the association pay all premiums or is a shared payment more appropriate? Another plus may be waiving the requirement for a physical examination. This may be particularly valuable to an employee who is otherwise unable to obtain coverage on his or her own.
  
  Health care costs continue to rise at an extraordinary pace. Companies will need to devote even more attention and resources to cost containment, preferred provider plans, premium sharing, alterna-tive care programs, and employee assistance programs, along with retiree medical coverage. A recent governmental ruling by the Financial Accounting Standards Board dramatically impacts the balance sheets of all organizations: Future projected costs for retiree medical coverage must now be accrued and carried as a liability on financial statements. And, as costs escalate, associations may have to shift the cost of retiree coverage, in whole or in part, back to retirees, thereby reducing their spendable income.
  
• Pension Plans
  These plans offer a wide variety of possibilities. The REALTOR® association may want to offer plans either to key persons or the entire staff. As it relates to IRS recognition, plans available to key persons are known as qualified plans; programs that cover the entire staff are considered unqualified plans.
  
  There is a broad availability of participation opportunities to both employers and employees that allow excellent opportunities for incentive strategies. Along with degrees of participation, there are various schedules for investiture (a point at which an employee has partial or entire control of the amount contributed by the association), which give the employer an opportunity to again recognize tenure as an inducement to remain with the association.
  
  Management should also be aware of the individual opportunities employees have to invest independently for their retirement through broadened regulations governing Individual Retirement Accounts (IRAs).
  
• Workers’ Compensation
  Workers’ Compensation, generally required in most states, is outside the range of options for many REALTOR® associations. The program is often less than ade-quate, though rarely expensive. Consideration should be given to supplementing this coverage with some form of disability or life insurance plan, or both, as described earlier in this manual. It may be important to consider the conditions under which a carrier will share in the coverage when supplemental plans are implemented.
  
• Tuition Reimbursement
  When additional education or training could enhance an employee’s effective-ness and value to the REALTOR® association, the association may want to establish a policy of reimbursement for all or a portion of these expenses, as the budget may allow. This policy should require advance arrangements to avoid misunderstandings at a later date. Of course, if additional training is necessary due to association changes in programming or services, the association should absorb all costs.

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Business Trips and Meetings
It may be necessary for certain employees to travel on association business. A pol-icy defining who will travel, as well as the basis and the amount of reimbursement, are important considerations. Additional factors include type and class of transpor-tation, type of lodging, and specific meal allowances.

There is no common formula used by REALTOR® associations to define travel policies. Some offer all expenses, others offer reasonable expenses, while still others offer a per diem. Policy should define whether there are advance monies pro-vided or whether all expenses are reimbursed following the event.

Topics to be defined in the employee handbook include: Proper method of reporting expenses, availability of a company credit card, and whether items such as alcoholic beverages and/or gifts are acceptable expenses.

Additional procedures may include how to complete an expense report; what vouchers and receipts are required (the first two may be necessary to satisfy IRS needs); who will handle arrangements; and how will travel advances be issued.
The necessity for travel should be included in the employee’s job description, or he or she should be informed of this obligation at the earliest possible opportunity prior to traveling. Employees who travel should be told what responsibility, if any, the association will assume for personal arrangements such as baby-sitting and home security.

Emergency, Safety, and Security Procedures
The association should have written procedures in place for handling emergencies and staff safety. Items should include the following: fires and evacuations, medical emergencies and injuries at work, office closings due to adverse conditions, and general building security.

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AIDS in the Workplace
AIDS is a major health problem in the United States—for society and for businesses. In the workplace, AIDS requires employers to address numerous personnel, bene-fits, and legal issues.

For more information on minimizing legal liability in this regard, see How to Comply with Federal Employment Laws (Washington, D.C.: London Publications, 1998)

 

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Leaving the Association
Leaving the REALTOR®association’s employment can sometimes be an emotional experience. Great care should be taken by the association to conduct any exit pro-cess in a businesslike manner, with care to observe courtesy and compassion for all concerned. Policy may address such aspects as reasonable advance notice (for employees without contractual arrangements), exit interviews, and expectations for a written resignation.<

• Voluntary
  It may be appropriate, for the sake of consistency, to determine whether or not the association will provide letters of recommendation to future potential employers on request; whether a more generic letter will be prepared at the time of resignation; or if some other method will be used to assist employees leaving under amicable terms.
  
  The association should establish policy and implementation procedures for employee lay-offs. This policy would address topics of advance notice, effective date, date of expected return (if known), and the manner in which accrued salary/wages and benefits are handled.
  
• Involuntary
  For situations where a worker has demonstrated a consistently unacceptable level of performance, it is important to document this situation carefully and follow the Employer/Employee Policy Guidelines.
  

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Summary
The work of the employee is a thread intimately woven into all aspects of his or her life and thus profoundly affects his or her social, physical, and emotional health. In recognizing this, the association must accept the responsibility to be honest, fair, thoughtful, and open in all matters that address employment.