Top 3 Employee Handbook No No’s and your Nonprofit Insurance
Having the appropriate and adequate Nonprofit Insurance is essential to the management of any nonprofit organization but it’s only one part of the whole risk management picture. Another critical element is a comprehensive and functional Employee Handbook. Employment policies that are communicated clearly and frequently to staff and applied consistently help you avoid litigation.
Further, there are state and federal laws that organizations must be in compliance with and compliance with these laws is outside of the parameters of your nonprofit insurance coverage. Legally sound employment policies are a signal of a healthy organization but crafting an effective handbook can be difficult.
Here are the Top 3 “No No’s” to avoid in your Employee Handbook:
- Any wording that implies that an employee has a job as long as they want or the use of the words “Permanent Employee”
- Not including an obvious and specific “at will” employment disclaimer
- A specific list of disciplinary actions and/or steps to termination or any language that dilutes the “at will” employment provisions
This is just an example of the worst infractions we see in Employee Handbooks. We suggest that you consult with the broker that handles your nonprofit insurance to provide more suggestions. Additionally, many Directors & Officers Insurance Companies will provide free legal help with Employee Handbooks.
