Start-Ups 201 - What Should We Include In Our 2020 Corporate Policies and Procedures?
Your corporate policies and procedures govern numerous aspects of how your company operates and conducts business. The policies and procedures that your company develops protect your company, but they also protect the company’s employees, customers, and clients.
Below are eight business matters that generally benefit from well-developed policies and procedures. If you need help with these or other business matters, a Maryland business attorney can provide guidance and legal advice.
Eight Corporate Policies and Procedures Every Company Needs to Address
1. Harassment And Discrimination Policies
Given today’s environment regarding harassment and discrimination in the workplace, companies benefit from having strong anti-discrimination and anti-harassment policies. Equal opportunity policies help protect the company from liability in the event of a lawsuit against an employee, officer, or board member. However, harassment and discrimination policies must comply with all federal and state laws.
2. Nondisclosure And Confidentiality Policies
A company’s trade secrets are valuable. They may be worth a great deal of money, especially to competitors. Protecting this information is crucial. Nondisclosure and confidentiality policies apply to employees, vendors, contractors, and other parties who have access to confidential information or trade secrets. These agreements require specific language to be enforceable. It is not advisable to use templates found online or borrowed from another source.
3. Employment-Related Policies
Employee-related issues can expose employers to legal liability for many issues. An employee handbook is only one step in developing policies and procedures for employees. The corporate handbook also contains policies and procedures governing employees. Both handbooks need to comply with federal and state employment laws.
Examples of employment-related matters in your corporate policies and procedures include, but are not limited to:
· At-will employment
· Independent contracts
· Health insurance benefits
· Equal opportunity policies
· Harassment policies
· Employment classifications
· Employee benefits and pay
· Break and meal periods
· Paid time off and leave
· Health and safety issues
· Employee attendance and conduct
4. Privacy And Data Protection Policies
State, federal, and international data protection and privacy policies protect the personal information collected from customers, clients, and other parties. Something as simple as an email address or name you collect online may be subject to privacy laws.
A comprehensive privacy and data protection policy incorporates steps to protect data required by all applicable laws. The policies also discuss how data is collected, stored, and shared with third parties. It specifically addresses regulatory restrictions and compliance requirements of all applicable data protection and privacy protection statutes and laws.
5. Website Terms Of Use And Copyright Policies
The Terms of Use Agreement for a website protects the company from lawsuits and liability under a variety of circumstances. Besides protecting a company from liability, a terms of use policy also defines the permitted conduct for individuals who use the website. A comprehensive terms of use policy can be very lengthy and contain numerous sections.
By copyrighting a website, the company protects content from being used without the company’s permission. A simple copyright notice added to the website is generally sufficient, provided that the statement contains the required language under copyright laws.
6. Payment Terms And Return Policies
It is difficult to enforce payment terms and return policies unless those policies are outlined in writing using clear and unambiguous language. Also, the parties must receive notice of the payment terms and returns policies before making a purchase.
Many companies include their payment terms and return policies in all contracts, bills of sale, purchase agreements, and other documents related to the products or services offered by the company. Posting the policy in areas where payments and purchases are made can also help protect the company from disputes related to these business matters.
7. Substance Abuse And Drug Policies
Employers have the right to direct a drug-free workplace, even in states that have passed recreational marijuana laws. However, substance abuse and drug policies must be clearly defined and communicated to all employees and contractors. The policies can be included in employment agreements, employee handbooks, corporate handbooks, and contractor agreements.
The key is making sure that the policies adhere to employment laws and that the company communicates the policies, including the consequences of violating those policies, to a party before the party begins working for the company.
8. Workplace Security And Safety Policies
Workplace security and safety policies help prevent workplace accidents, and help protect trade secrets. Workers’ compensation insurance is a large expense for many businesses. Safety policies, including regular safety meetings and safety training, can reduce the losses related to workplace injuries.
Computer security, policies related to entry to the facility, and procedures for signing in guests can help reduce the risk of trade secret theft. Security policies also protect employees. Computer security protects the unintentional damage to systems and the release of private data because of malware and computer viruses.
Contact a Maryland Business Attorney for More Information
Developing your corporate policies and procedures manual can be a complex undertaking. The information and terms in your manuals, employee handbooks, and other documents can constitute legally binding agreements.
Maryland business attorney, Steve Thienel, works with companies to ensure that their policies and procedures comply with all laws regarding the various subjects covered in your corporate policies and procedures while protecting the company’s business interests.
