Employee Handbook Review: Insights & Recommendations

5-1 Project One: Manager Memo Sarah Villanueva Southern New Hampshire University HRM-225 Proactive HR Strategies Professor Shelley

Memorandum To: Manager From: Sarah Villanueva, HRM Specialist Date: September 30, 2023 Subject: Handbook analysis, recommendations, and risk mitigation strategies Handbook Analysis I’ve reviewed the employee handbook, and I have noticed there are several mistakes with the ABC Company handbook. Primarily I noticed is the date listed shows 2018. Moreover, it states that non-exempt employees are not covered by the Fair Labor Standards Act (FLSA). Lastly, the handbook is not clear with their policies. Gaps/Policy Violations and Handbook Recommendations : There are several gaps that are in the handbook. It is outdated with 2018 and needs to be up to the date since we are in 2023. The description for non-exempt and exempt employees is incorrect. The handbook lists non-exempt employees are not covered under FLSA and exempt employees are covered. However, non-exempt employees are covered by the FLSA requirements for overtime pay and are covered by the FLSA law. Exempt employees do not qualify for overtime pay and non-exempt employees do. In addition, the handbook is not clear about what benefits are offered for part-time and full-time employees. The employee handbook needs to be updated properly with correct information in detail. Payroll needs to be corrected promptly to any employee that was paid incorrectly because as of

right now ABC Company is not following the FLSA guidelines and labor laws. Overtime for a non-exempt employee is one and a half times the employee’s usual hourly rate that is worked after 40 hours in a seven-day workweek (Noe, 2022). Failure to be in compliant with this means that the ABC Company may face legal action. Risk Mitigation: I suggest that ABC Company does an extensive audit of all current procedures and polices to mitigate risk. Managers need to monitor overtime and absences. Starting next month, I’m recommending that all employees leave one day early so all employees can have a total of 39 hours in a work week. Managers have a month to talk with each employee to see what day they would like to leave early and as long as the days are spread out accordingly HR will approve the request. The HR department needs to consider tactics to reduce the overtime time problem. If business needs overtime, there should be a consistency with the hours. I’m recommending that we should consider new shift schedules or bring in temporary workers. If we do not take action to fix and approve the overtime situation we may lose out on more money. The employees that did not get their overtime pay can take legal action. If successful, the employee can recover wages that are not paid, and we may have to pay penalties for bad faith failure to pay the wages.

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References: Noe, R. (2022). Fundamentals of Human resource management (9th ed.). McGraw-Hill. Toolkits . SHRM. (2022, April 26). https://www.shrm.org/ResourcesAndTools/tools-and- samples/toolkits/Pages/default.aspx

HRM 5.1 Project One Manager Memo

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