Equal Employment Opportunity

[]  State that an employees religion, age, sex, national origin,
race, color, etc. will have nothing to do with hiring, promotion, pay,
or benefits.

[]  Include an Affirmative Action Plan, if you're required to have
one, as only one part of your new employee packet. This should be a
separate manual.

[]  Choose one of the following policies as appropriate. Make sure
that any edits to the policy are in compliance with the Americans with
Disabilities Act (ADA).

[Company] has a long standing record of nondiscrimination in
employment and opportunity because of race, color, religion, creed,
national origin, ancestry, disability, sex or age. The President has
issued the following policy stating the Company's views in this
matter:

It is the policy of [Company] to:

*  strictly follow personnel procedures that will ensure equal
opportunity for all people without regard to race, color, religion,
creed, national origin, sex, age, ancestry, marital status,
disability, veteran or draft status;

*  comply with all the relevant and applicable provisions of the
Americans with Disabilities Act ("ADA"). [Company] will not
discriminate against any qualified employee or job applicant with
respect to any terms, privileges, or conditions of employment because
of a person's physical or mental disability.

*  make reasonable accommodations wherever necessary for all employees
or applicants with disabilities, provided that the individual is
otherwise qualified to safely perform the duties and assignments
connected with the job and provided that any accommodations made do
not require significant difficulty or expense.

*  achieve understanding and acceptance of [Company]'s policy on Equal
Employment Opportunity by all employees and by the communities in
which the company operates;

*  thoroughly investigate instances of alleged discrimination and take
corrective action if warranted;

*  be continually alert to identify and correct any practices by
individuals that are at variance with the intent of the Equal
Employment Opportunity Policy.

At this time, [Company] would like to reaffirm this policy and call
upon all personnel to effectively pursue the policy as stated.

Please check the employee information bulletin board for all related
equal opportunity and job announcements.

  -- OR --

[Company] will provide equal employment opportunity without regard to
race, color, sex, age, disability, religion, national origin, marital
status, sexual orientation, ancestry, political belief or activity, or
status as a veteran.

The policy applies to all areas of employment, including recruitment,
hiring, training and development, promotion, transfer, termination,
layoff, compensation benefits, social and recreational programs, and
all other conditions and privileges of employment in accordance with
applicable federal, state, and local laws.

It is the policy of [Company] to comply with all the relevant and
applicable provisions of the Americans with Disabilities Act (ADA).
[Company] will not discriminate against any qualified employee or job
applicant with respect to any terms, privileges, or conditions of
employment because of a person's physical or mental disability.
[Company] also will make reasonable accommodation wherever necessary
for all employees or applicants with disabilities, provided that the
individual is otherwise qualified to safely perform the duties and
assignments connected with the job and provided that any
accommodations made do not require significant difficulty or expense.

Equal employment opportunity notices are posted on appropriate
employee bulletin boards as required by law. The notices summarize the
rights of employees to equal opportunity in employment and lists the
names and addresses of the various government agencies that may be
contacted in the event that any person believes he or she has been
discriminated against.

Management is primarily responsible for seeing that [Company]'s equal
employment opportunity policies are implemented, but all members of
the staff share in the responsibility for assuring that by their
personal actions the policies are effective and apply uniformly to
everyone.

Any employees, including managers, involved in discriminatory
practices will be subject to discharge.

Note: Throughout this Employee Manual, masculine pronouns such as he,
his, or him shall be construed so as to include both sexes.

Former Employees

[]  You may not want to have a policy on this; omit this section if it
does not meet your company's needs.

Depending on the circumstances, [Company] may consider a former
employee for re-employment. Such applicants are subject to [Company]'s
usual pre-employment procedures. To be considered, an applicant must
have been in good standing at the time of their previous termination
of employment with [Company] and must have provided at least two weeks
advance notice of their intention to terminate their employment with
[Company].

Reinstatement of Benefits (Bridging)

[]  This is optional -- we've provided four sample policies for you to
consider.

In the event you return to work for [Company],

(a)

within twelve (12) months of termination of your previous employment
with [Company], and you terminated your previous employment with
[Company] in good standing, [your absence will be treated as if it
were a Leave of Absence/you may be eligible to continue your benefits
at the level you enjoyed them (commensurate with your new position) at
the time of your termination of previous employment with [Company]].

  -- OR --

(b)

and the length of time you were away from [Company] is less than the
length of time of your previous employment with [Company], you may be
eligible to continue your benefits at the level you enjoyed them
(commensurate with your new position) at the time of your termination
of previous employment with [Company].

  -- OR --

(c)

and upon completion of twelve (12) months of continuous employment
with [Company], you may be eligible to continue your benefits at the
level you enjoyed them (commensurate with your new position) at the
time of your termination of previous employment with [Company].

  -- OR --

(d)

regardless of the length of your previous employment and length of
time since you terminated your employment with [Company], your
benefits shall accrue as if you were a new/first-time [Company]
employee.

Harassment Policy

[]  This policy will need to be revised as time goes on and your
company changes and grows. Review your policy each year with an
attorney for any legal changes that may need to be made.

[]  If you are implementing this policy for the first time you may
want to have employees make comments and suggestions at the end of six
(6) months. This kind of feedback will be a good gauge as to how
seriously the policy is taken.

[]  For more information, see the reprinted article Sexual Harassment
in the Workplace: An Overview in the EmployeeManualMaker Reference
Guide.

[Company] intends to provide a work environment that is pleasant,
healthful, comfortable, and free from intimidation, hostility or other
offenses which might interfere with work performance. Harassment of
any sort - verbal, physical, visual - will not be tolerated.

What Is Harassment?

Harassment can take many forms. It may be, but is not limited to:
words, signs, jokes, pranks, intimidation, physical contact, or
violence. Harassment is not necessarily sexual in nature.

Sexually harassing conduct may include unwelcome sexual advances,
requests for sexual favors, or any other verbal or physical contact of
a sexual nature that prevents an individual from effectively
performing the duties of their position or creates an intimidating,
hostile or offensive working environment, or when such conduct is made
a condition of employment or compensation, either implicitly or
explicitly.

Responsibility

All [Company] employees, and particularly managers, have a
responsibility for keeping our work environment free of harassment.
Any employee who becomes aware of an incident of harassment, whether
by witnessing the incident or being told of it, must report it to
their immediate manager or any management representative with whom
they feel comfortable. When management becomes aware that harassment
might exist, it is obligated by law to take prompt and appropriate
action, whether or not the victim wants the company to do so.

Reporting

Any incidents of harassment must be immediately reported to a manager
or other management representative. Appropriate investigation and
disciplinary action will be taken. All reports will be promptly
investigated with due regard for the privacy of everyone involved. Any
employee found to have harassed a fellow employee or subordinate will
be subject to severe disciplinary action or possible discharge.
[Company] will also take any additional action necessary to
appropriately remedy the situation. No adverse employment action will
be taken for any employee making a good faith report of alleged
harassment.

[Company] accepts no liability for harassment of one employee by
another employee. The individual who makes unwelcome advances,
threatens or in any way harasses another employee is personally liable
for such actions and their consequences. [Company] will not provide
legal, financial or any other assistance to an individual accused of
harassment if a legal complaint is filed.

Health Examinations

[]  Drug testing does not qualify as a medical exam under the ADA. So
drug tests may be given to both applicants and employees. Check with
your attorney concerning any state laws that may restrict drug
testing.

[Company] reserves the right to require an employee to participate in
a health examination to determine the employee's fitness to perform
his/her essential job functions. All such health exams shall be paid
for by the company.

How You Were Selected

We carefully select our employees through written application,
personal interview and reference checks. After all available
information was carefully considered and evaluated, you were selected
to become a member of our team.

This careful selection process helps [Company] to find and employ
people who are concerned with their own personal success and the
success of [Company]; people who want to do a job well and who can
carry on their work with skill and ability; and people who are
comfortable with [Company] and who can work well with our team.

Introductory Period

[]  It's generally a good idea to establish a time period allowing you
to evaluate a new employee to be sure they are suitable for your
company. This time period used to be referred to as probation, but
that's not a good term to use because it may imply that completion of
the probationary period is a guarantee of a permanent employment
relationship!

[]  Define the period (usually 30, 60, or 90 days) during which a new
employee can be dismissed after only a verbal warning without  a
hearing on the cause; also indicate when benefits start to accrue.

[]  Avoid a great discrepancy between the introductory period and the
period before an employee qualifies for group insurance. Your
insurance carrier may impose guidelines that dictate when benefits
become effective.

Your first [thirty (30)/sixty (60)/ninety (90)] days of employment at
[Company] are considered an Introductory Period, and during that
period you will not accrue benefits described in this Manual unless
otherwise required by law. This Introductory Period will be a time for
getting to know your fellow employees, your manager and the tasks
involved in your job position, as well as becoming familiar with
[Company]'s products and services. Your manager will work closely with
you to help you understand the needs and processes of your job.

This Introductory Period is a try-out time for both you, as an
employee, and [Company], as an employer. During this Introductory
Period, [Company] will evaluate your suitability for employment, and
you can evaluate [Company] as well. At any time during this first
[thirty (30)/ sixty (60)/ ninety (90) days], you may resign without
any detriment to your record. If, during this period, your work
habits, attitude, attendance or performance do not measure up to our
standards, we may release you. If you take approved time off in excess
of five workdays during the Introductory Period, the Introductory
Period may be extended by that length of time.

At the end of the Introductory Period, your manager will discuss your
job performance with you. This review will be much the same as the
normal job performance review that is held for regular full-time or
part-time employees on an [annual/semi-annual/quarterly] basis. During
the course of the discussion, you are encouraged to give your comments
and ideas as well.

Please understand that completion of the Introductory Period does not
guarantee continued employment for any specified period of time, nor
does it require that an employee be discharged only for "cause."

A former employee who has been rehired after a separation from
[Company] of more than one (1) year is considered an introductory
employee during their first [thirty (30)/sixty (60)/ninety (90)] days
following rehire.

Job Descriptions

[]  Any job descriptions you prepare should be in accordance with the
Americans with Disabilities Act (ADA). Check with your attorney and
see the reprinted article, Overview: The Americans With Disabilities
Act in the EmployeeManualMaker Reference Guide.

We maintain a job description for each position in [Company]. When
your duties and responsibilities are changed, your job description
will be updated. If you wish to see your job description, please ask
your manager or [x] [Title/Department].

Knowledge of [Company]

After having learned to competently perform your own duties, your next
step is to familiarize yourself with other [Company] activities. This
can prove valuable to you, our customers and [Company] as well.
[Company] may provide additional cross-training.

Knowledge of the services and products of [Company] will help you
avoid the I don't know syndrome. Our customers' confidence in you
increases as you are able to answer their basic questions. However,
please don't pretend you know the answer or try to guess the answer
when you are uncertain. If you are unsure of the correct information,
refer the inquiry to your manager, or to a person more qualified to
respond.

Non-Compete Agreement

[]  For most employees in exempt positions and certain sensitive non-
exempt positions, we recommend the Employment Agreement provided as
part of AgreeMentor(tm) a collection of plain-English business
agreements. See the Catalog section in the back of the
EmployeeManualMaker Reference Guide for a detailed description.

Certain new employees, such as outside/field salespeople and others,
may be required to sign a Non-Compete Agreement prepared by our
attorneys as a condition of employment.

Outside Employment

What you do on your free time is your own business. However, if you
are employed by [Company] in a full-time position, [Company] will
expect that your position here is your primary employment. Any outside
activity must not interfere with your ability to properly perform your
job duties at [Company].

If you are thinking of taking on a second job, it would be wise to
notify your manager immediately. He or she will thoroughly discuss
this opportunity with you to make sure that it will not interfere with
your job at [Company] nor pose a conflict of interest.

Proof of U.S. Citizenship and/or Right to Work

[]  You aren't limited to hiring only U.S. citizens -- you may hire
aliens legally authorized to work in the U.S. You may not show a
preference for U.S citizens in a field of equally qualified candidates
with a right to work in the U.S.

[]  The Immigration Reform & Control Act (IRCA) affects all employees
(including U.S. citizens!) hired after November 6, 1986. If you have
questions about IRCA, you can get a copy of the Immigration &
Naturalization Service (INS) handbook, "Handbook for Employers" by
calling the INS employer help line at 1-800-777-7700 or write to
Immigration & Naturalization Service, Washington, DC 20536. (If you
have been unaware of this law or have done nothing about it, you may
wish to contact your attorney or a local trade association to get
information. Calling the INS yourself may raise a red flag.)

[]  More than 20,000 businesses have been investigated, in excess of
2,000 have been served notice and over $9,000,000 in penalties have
been assessed since IRCA became law!  The INS goes back to the
beginning and you could be fined several hundred dollars per error
(missing social security number, etc.) in your files -- and the INS
wins in court!

[]  IRCA requires you to do the following:  1) have your employees
fill out their part of the Form I-9 when they begin work; 2) verify
documents establishing your employee's identity and eligibility to
work. The "Green Card" or form I-551 we've seen is actually pink; it
has a color photograph of the cardholder on the left side; the blue
seal of the Justice Department in the center, and a finger print on
the right. The cardholder's signature is at the bottom. "I-551" is
embedded in the plastic laminating material. If you are still not
certain, ask for a Social Security card. It will look like a normal
Social Security Card, but check to see that the "Not for Employment"
statement is not present or has not been tampered with or erased. This
statement is added to cards issued to students, temporary residents,
etc. who are not eligible to work.

[]  It is suggested that you properly complete Form I-9 and keep the I-
9 forms in a separate file for at least three (3) years after the
person's employment ends -- in case of an audit, you can provide just
the relevant forms. Present the forms for inspection to an INS or
Department of Labor officer on request -- you'll be given at least 3
days notice. (Source: Independent Business Magazine, December 1990)

Federal regulations require that 1) before becoming employed, all
applicants must complete and sign Federal Form I-9, Employment
Eligibility Verification Form; and 2) all applicants who are hired
need to present documents of identity and eligibility to work in the
U. S.

Relatives

[]  Never fire someone for marrying another employee.

[]  Choose the sample policy that best suits your company's needs.

If you and members of your immediate family are employed by [Company],
one may not supervise the other nor may they work in the same
department. If the employees are unable to develop a workable
solution, the President of [Company] will decide which employee may be
transferred in such situations. For purposes of this section, your
immediate family includes your spouse, your children, your siblings,
your parents, your grandparents, and your spouse's children, siblings,
parents and grandparents.

Should two present employees that work together or supervise each
other enter into a personal, non-work related relationship, one or
both employees may have to be transferred.

Employees working in the Personnel department may not be related to
employees working outside that department.

  -- OR --

Members of your immediate family will not be hired by [Company]. For
purposes of this section, your immediate family includes your spouse,
your children, your siblings, your parents, your grandparents, and
your spouse's children, siblings, parents and grandparents.

Should two present employees marry or otherwise become closely
related, they may not work in the same department.

Salesperson Agreement

[]  We recommend the Independent Sales Representative Agreement
provided as part of AgreeMentor(tm), a collection of plain-English
business agreements. See the Catalog section in the back of the
EmployeeManualMaker Reference Guide for a detailed description.

When you are hired in or promoted to the position of salesperson, you
will be asked to sign an agreement that cites certain terms and
conditions regarding your position as a salesperson. The purpose of
this agreement, among other things, is to clearly establish the terms
for commission payment, territory assignment, etc.

Security Checks

[Company] may exercise its right to inspect all packages and parcels
entering and leaving our premises.

Spouse Accepts Employment From a Competitor

[]  We suggest you obtain local legal advice on this, since the policy
may threaten employee's rights under some state and local laws.

[]  Consider including "Significant Other" here -- check with your
attorney or watch for new legislation on this. We suggest using "The
Personnel News," offered by subscription, to stay current with
employee relations issues. (A description of The Personnel News is in
the Resources section of the EmployeeManualMaker Reference Guide.)

Should your spouse accept employment with a competitor firm, [Company]
reserves the right to terminate your employment with us.

Spouse Works For a Competitor

[]  We suggest you obtain local legal advice on this, since the policy
may threaten employee's rights under some state and local laws.

Should your spouse be employed with a competitor firm, [Company]
reserves the right not to hire you or to terminate your employment
with us.

We Need Your Ideas

[]  Consider giving your people an incentive to cut costs -- share a %
of the savings with them.

[]  Omit the reference to profit sharing if it does not apply to your
company.

[]  You may wish to distribute the "Bright Idea Memo" found in the
Forms & Memos section of the EmployeeManualMaker Reference Guide and
on diskette.

Ask any of our employees who have worked with us for a long time and
they will probably tell you of the many changes and improvements that
have come about in their departments since they first joined us. We
believe the person doing a job is in the best position to think of
ways of doing it more easily, more efficiently, and more effectively.
If you think of a better way of doing your job or the job of a fellow
employee, discuss it with your manager, who will welcome your
suggestions and ideas.

Note:  See "Suggestions" in the "Other Policies" section of this
Manual for specific instructions on submitting suggestions.

Remember, there may be areas in [Company]'s operation that can be
improved. These could be in service, production methods, equipment,
communications, safety, ways to reduce costs, losses, and/or waste, or
other improvements you may see a need for. Please give us the benefit
of your unique experience and thoughts. Your contributions, as well as
those of others, could expand your profit sharing!  Also, make sure to
document your innovations and money-saving efforts and have them
placed in your personnel file (include dates, detailed descriptions of
your contributions, estimates from the accounting department regarding
cost savings or profits generated, etc.) -- these may favorably affect
your wage, salary or promotion reviews.



                         Standards of Conduct

Whenever people gather together to acheive goals, some rules of
conduct are needed to help everyone work together efficiently,
effectively, and harmoniously. Some people have problems with "rules"
and "authority figures," and past experience may have justified these
thoughts and feelings; however, at [Company], we hold ourselves to a
high standard of quality where the rules and authority figures simply
assure that quality is maintained.

By accepting employment with us, you have a responsibility to
[Company] and to your fellow employees to adhere to certain rules of
behavior and conduct. The purpose of these rules is not to restrict
your rights, but rather to be certain that you understand what conduct
is expected and necessary. When each person is aware that he or she
can fully depend upon fellow workers to follow the rules of conduct,
then our organization will be a better place to work for everyone.

Disciplinary Actions

[]  The following sections provide two very different approaches to
discipline. The first policy provides for a more traditional approach.
The second policy covers a new, non-punitive approach to discipline
called Discipline Without Punishment. Choose one or the other
according to your company's needs and corporate culture.

Unacceptable Activities

Generally speaking, we expect each person to act in a mature and
responsible way at all times. However, to avoid any possible
confusion, some of the more obvious unacceptable activities are noted
below. Your avoidance of these activities will be to your benefit as
well as the benefit of [Company]. If you have any questions concerning
any work or safety rule, or any of the unacceptable activities listed,
please see your manager for an explanation.

Occurrences of any of the following violations, because of their
seriousness, may result in immediate dismissal without warning:

*  Willful violation of any company rule; any deliberate action that
is extreme in nature and is obviously detrimental to [Company]'s
efforts to operate profitably.
*  Willful violation of security or safety rules or failure to observe
safety rules or [Company] safety practices; failure to wear required
safety equipment; tampering with [Company] equipment or safety
equipment.
*  Negligence or any careless action which endangers the life or
safety of another person.
*  Being intoxicated or under the influence of controlled substance
drugs while at work; use or possession or sale of controlled substance
drugs in any quantity while on company premises except medications
prescribed by a physician which do not impair work performance.
*  Unauthorized possession of dangerous or illegal firearms, weapons
or explosives on company property or while on duty.
*  Engaging in criminal conduct or acts of violence, or making threats
of violence toward anyone on company premises or when representing
[Company]; fighting, or horseplay or provoking a fight on company
property, or negligent damage of property.
*  Insubordination or refusing to obey instructions properly issued by
your manager pertaining to your work; refusal to help out on a special
assignment.
*  Threatening, intimidating or coercing fellow employees on or off
the premises -- at any time, for any purpose.
*  Engaging in an act of sabotage; willfully or with gross negligence
causing the destruction or damage of company property, or the property
of fellow employees, customers, suppliers, or visitors in any manner.
*  Theft of company property or the property of fellow employees;
unauthorized possession or removal of any company property, including
documents, from the premises without prior permission from management;
unauthorized use of company equipment or property for personal
reasons; using company equipment for profit.
*  Dishonesty; willful falsification or misrepresentation on your
application for employment or other work records; lying about sick or
personal leave; falsifying reason for a leave of absence or other data
requested by [Company]; alteration of company records or other company
documents.
*  Violating the non-disclosure agreement; giving confidential or
proprietary [Company] information to competitors or other
organizations or to unauthorized [Company] employees; working for a
competing business while a [Company] employee; breach of
confidentiality of personnel information.
*  Malicious gossip and/or spreading rumors; engaging in behavior
designed to create discord and lack of harmony; interfering with
another employee on the job; willfully restricting work output or
encouraging others to do the same.
*  Immoral conduct or indecency on company property.
*  Conducting a lottery or gambling on company premises.

Occurrences of any of the following activities, as well as violations
of any [Company] rules or policies, may be subject to disciplinary
action, including possible immediate dismissal. This list is not all-
inclusive and, notwithstanding this list, all employees remain
employed "at will."

*  Unsatisfactory or careless work; failure to meet production or
quality standards as explained to you by your manager; mistakes due to
carelessness or failure to get necessary instructions.
*  Any act of harassment, sexual, racial or other; telling sexist or
racial-type jokes; making racial or ethnic slurs.
*  Leaving work before the end of a workday or not being ready to work
at the start of a workday without approval of your manager; stopping
work before time specified for such purposes.
*  Sleeping on the job; loitering or loafing during working hours.
*  Excessive use of company telephone for personal calls.
*  Leaving your work station during your work hours without the
permission of your manager, except to use the rest room.
*  Smoking in restricted areas or at non-designated times, as
specified by department rules.
*  Creating or contributing to unsanitary conditions.
*  Posting, removing or altering notices on any bulletin board on
company property without permission of an officer of [Company].
*  Failure to report an absence or late arrival; excessive absence or
lateness.
*  Filling your own order or invoicing or ringing up your own order.
*  Buying company merchandise for resale.
*  Obscene or abusive language toward any manager, employee or
customer; indifference or rudeness towards a customer or fellow
employee; any disorderly/antagonistic conduct on company premises.
*  Speeding or careless driving of a forklift or any other company
vehicles.
*  Failure to immediately report damage to, or an accident involving
company equipment.
*  Soliciting during working hours and/or in working areas; selling
merchandise or collecting funds of any kind for charities or others
without authorization during business hours, or at a time or place
that interferes with the work of another employee on company premises.
*  Failure to maintain a neat and clean appearance in terms of the
standards established by your manager; any departure from accepted
conventional modes of dress or personal grooming; wearing improper or
unsafe clothing.
*  Eating food and beverages in undesignated areas or at your work
station.
*  Failure to use your timecard; alteration of your own timecard or
records or attendance documents; punching or altering another
employee's timecard or records, or causing someone to alter your
timecard or records.

Disciplinary Actions

Unacceptable behavior which does not lead to immediate dismissal may
be dealt with in the following manner:

[]  Choose one of the two sequences provided, or modify the text to
suit the needs of your company.
  Verbal Warning
  First Written Warning
  Second Written Warning
  Third Written Warning
  Dismissal

  -- OR --

  Verbal Warning
  Written Warning
  Dismissal

Written warnings will include the reasons for the manager's
dissatisfaction and any supporting evidence. You will have an
opportunity to defend your actions and rebut the opinion of your
manager at the time the warning is issued. Disciplinary actions may
also include fines, suspensions or other measures deemed appropriate
to the circumstances.

All pertinent facts will be carefully reviewed, and the employee will
be given a full opportunity to explain his or her conduct before any
decision is reached. The President or another member of senior
management will give a second opinion concerning the unacceptable
behavior before dismissal occurs.

  -- OR --

Discipline

[]  Many organizations are coming to realize that the approach they
use to handle disciplinary problems is no longer appropriate for
today's workforce. Traditional methods of dealing with disciplinary
infractions - warnings, threats, reprimands, unpaid disciplinary
suspensions - are resisted by managers who dislike having to use
punitive approaches to get employees to change their performance or
behavior.

[]  A non-punitive approach to discipline is being used by a great
many of America's best managed companies. Like conventional
approaches, the "discipline without punishment" system provides a
progressive series of steps to get employees to correct thorny
problems of absenteeism, apathetic attitudes, and mediocre
performance. But discipline without punishment rejects all traditional
punitive approaches. Instead, this approach requires employees to take
personal responsibility for their own behavior and make honest
decisions about their own careers.

[]  For further background on "discipline without punishment", see
Discipline Without Punishment in the Articles of Interest section in
the back of the EmployeeManualMaker Reference Guide.

[]  In the following policy the employee is given the "option" to
quit; quit is really being used interchangeably with terminate.

[]  This policy is appropriate for Absenteeism, Tardiness, etc. It
should not be used for Sexual Harassment. Please refer to the sexual
harassment policy for special guidelines.

[]  Unique to discipline without punishment is the final step before
termination -- the Decision Making Leave. The employee is suspended
for a day but receives his full pay while he is out. He is told that
paying him for the day is the company's way of demonstrating that it
is genuinely interested in seeing him correct the problem and return
to being a fully acceptable performer. But he is also told that on the
day that he/she is away he must make a decision -- either to change,
correct the problem completely and permanently, and remain with the
organization; or quit and find greener pastures elsewhere.

[]  The novel idea of a paid disciplinary suspension has not only been
consistently upheld by arbitrators and other third parties as a valid
disciplinary approach; it has had remarkable success in building
individual responsibility and genuine commitment among employees who
might have been fired if traditional approaches had been used. In
addition, managers are enthusiastic about the approach since it allows
them to talk about performance problems and take disciplinary action
in a professional, dignified manner.

[]  The following policy covers most of the critical issues involved
in implementing a non-punitive system. In addition, since documenting
disciplinary action is a delicate and sensitive area that must be
performed properly if it is to survive a third party challenge, we
have included sample disciplinary memos in the Forms & Memos section
of the EmployeeManualMaker Reference Guide and on diskette.

[]  In most organizations, employees who are completing their initial
trial or "introductory" period are not eligible for this discipline
system. If an employee's performance or conduct during a introductory
period is such that you are considering holding a disciplinary
conversation, the wiser course would probably be termination.

The Discipline Policy applies to all regular employees who have
completed the introductory period.

This policy pertains to matters of conduct as well as the employee's
competence. However, an employee who does not display satisfactory
performance and accomplishment on the job may be dismissed, in certain
cases, without resorting to the steps set forth in this policy.

Under normal circumstances, managers are expected to follow the three-
step procedure outlined below. There may be particular situations,
however, in which the seriousness of the offense justifies the
omission of one or more of the steps in the procedure. Likewise, there
may be times when the company may decide to repeat a disciplinary
step.

To insure that [Company] business is conducted properly and
efficiently, you must conform to certain standards of attendance,
conduct, work performance and other work rules and regulations.

When a problem in these areas does arise, your manager will coach and
counsel you in mutually developing an effective solution. If, however,
you fail to respond to coaching or counseling, or an incident occurs
requiring formal discipline, the following procedures occur.

Step One: Oral Reminder

[]  The first step of the Discipline Without Punishment approach is
the Oral Reminder. The focus here is on reminding the employee that it
is his/her responsibility to meet the company's expectations rather
than on reprimanding the employee for violating it. The manager's goal
during the conversation should be on gaining the employee's agreement
to change rather than on warning the employee what will happen the
next time the manager catches the employee misbehaving.

Your manager will meet with you to discuss the problem, making sure
that you understand the nature of the violation and the expected
remedy. The purpose of this conversation is to remind you of exactly
what the rule or performance expectation is and also remind you that
it is your responsibility to meet that expectation.

[]  All disciplinary action must be documented, but at the Oral
Reminder stage the documentation can be fairly informal. Most
organizations ask the manager to write a summary of the conversation
with the employee and keep this informal memo in there departmental
working file, rather than making it a part of the employee's permanent
personnel record. In this way, the manager can advise the employee
that even though they are at the first formal level of disciplinary
action, nothing will appear in the employee's file about the
conversation unless they have to move to the next more serious step.

[]  Most organizations provide that if the employee corrects the
problem and no further breaches of discipline occur within a
reasonable period, the initial transaction will be deactivated after
a certain period of time. The section on Disciplinary Deactivation,
including suggested time frames, follows this section.

You will be informed that the Oral Reminder is the first step of the
discipline procedure. Your manager will fully document the Oral
Reminder, which will remain in effect for [x] months. Documentation of
the incident will remain in the department file and will not be placed
in your permanent record, unless another disciplinary transaction
occurs.

Step Two: Written Reminder

[]  Most organizations provide that at the Oral Reminder step, the
first formal level of disciplinary action, the manager is fully
authorized to take action without approval from his or her boss in
advance.

[]  At the second level, the Written Reminder, it is appropriate for
the manager to discuss the situation with his or her boss before
taking the formal step. This allows the boss to make sure that
disciplinary action is being handled reasonably consistently by all
managers and allows the boss to do some coaching of the manager to
help assure that the conversation between the manager and the employee
will be effective in building commitment and bringing about change.

[]  The conversation between the manager and the employee at the
Written Reminder stage should be similar to that held at the Oral
Reminder step of the processserious, dignified, businesslike,
professional. Again, the manager's purpose is to remind the employee
of the company's expectations and his/her responsibility for meeting
these expectations. The most significant difference between the Oral
Reminder and Written Reminder steps is that at the end of the
conversation, the manager advises the employee that he is now at the
second formal level of disciplinary action and that after the meeting
the manager will write a memo to the employee summarizing the
discussion and the employee's agreement to change.

If your performance does not improve within the [x] month period, or
if the you are again in violation of [Company] practices, rules or
standards of conduct, your manager, after reviewing the situation with
their manager, will discuss the problem with you, emphasizing the
seriousness of the problem and the need for you to immediately remedy
the problem.

[]  We have included disciplinary memos in the Forms & Memos section
of the EmployeeManualMaker Reference Guide and on diskette. The
Written Reminder will help make sure that all appropriate information
(and only the appropriate information) is included in the disciplinary
documentation.

[]  The procedures outlined below call for a copy of the memo to be
sent to the Human Resources department which is responsible for
placing it in the employee's file. If your company does not have a
Human Resources department it would be appropriate for the memo to be
reviewed by the senior operating manager and then placed in the
employee's file by whomever handles personnel transactions.

Following the conversation, your manager will write a memo to you
summarizing the discussion. The original memo will go to you and a
copy will be routed to the Human Resources department. The Human
Resources copy of the memo will be placed in your file.

[]  Again, it is appropriate to indicate how long this disciplinary
step will remain active.

The Written Reminder will remain in effect for [x] months.

Step Three: Decision-Making Leave

[]  The final step of the Discipline Without Punishment system
involves placing the employee on a Decision Making Leave -- a paid one-
day disciplinary suspension. Unlike traditional unpaid disciplinary
suspensions, the purpose of the Decision Making Leave is not to punish
the individual for his misbehavior but to convince the employee that
he must now make a final decision either to correct the immediate
problem and make a commitment to totally acceptable performance in
every area of his job, or to quit and find more satisfying work
elsewhere.

[]  Suspending the employee as a final disciplinary step has many
advantages over using a final written warning or placing the employee
on probation -- it is a dramatic gesture that strongly communicates
the seriousness of the situation, it provides time to think, it
reinforces the authority of the manager, and most important, it has
been consistently upheld by arbitrators and other third parties as
sufficient notice to the individual that, "your job is at risk."

[]  Paying the employee for the day that he is away also has many
powerful advantages over an unpaid suspension -- it transforms anger
into guilt; it reduces martyrdom and resentment; it communicates the
Company's commitment to dealing with all employees (even those who get
involved in disciplinary problems) as mature, responsible adults and
it places the emphasis on personal responsibility and decision making
and not on punishment.

[]  When the employee returns on the day following the Decision Making
Leave, he does not immediately go back to work. Instead, he meets with
his manager to advise him of the decision he has made -- either to
correct the problem and commit to acceptable performance in every area
of the job, or to quit. The employee is advised that the company is
pleased that the individual has decided to change and stay (few ever
announce a decision to quit), but that if another problem requiring
disciplinary action arises, the logical consequence is termination.
After this brief meeting, the manager writes the employee a memo
documenting the entire transaction.

[]  Prior to placing an employee on Decision Making Leave, the manager
should consult with the next two higher levels of supervision and/or
the Human Resources manager should be advised.

If your performance does not improve within the [x] month period
following a Written Reminder, or if you are again in violation of
[Company] practices, rules or standards of conduct, you will be placed
on Decision Making Leave. The Decision Making Leave is the final step
of [Company]'s disciplinary system.

Decision Making Leave is a paid, one-day disciplinary suspension.
Employees on Decision Making Leave will spend the following day away
from work deciding whether to correct the immediate problem and
conform to all of the company's practices, rules and standards of
conduct, or to quit and terminate their employment with [Company].

If your decision following the Decision Making Leave is to return to
work and abide by [Company] practices, rules and standards of conduct,
your manager will write a letter to you explaining your commitment and
the consequences of failing to meet this commitment. You will be
required to sign the letter to acknowledge receipt. A copy of the
letter will be routed to senior managers in your chain of command. A
copy will be placed in your personnel file.

You will be allowed to return to work with the understanding that if a
positive change in behavior does not occur, or if another disciplinary
problem occurs within the next [x] months, you will be terminated.

If you are unwilling to make such a commitment, you may be terminated.

Sequence of Steps

[]  In most cases, if an informal coaching (i.e., non-disciplinary)
discussion does not solve a problem, the manager moves to the Oral
Reminder step and continues through the steps until either the problem
is solved or the individual is terminated.

[]  However, if a significant period of time has passed following an
Oral or Written Reminder, or if the employee commits an entirely
unrelated offense during the active period of an Oral or Written
Reminder, it may be appropriate to give the person a second Oral or
Written Reminder rather than automatically moving to the next more
serious step. The criterion is the manager's judgment about what
action will be most likely to bring about a permanent performance
correction.

[]  Likewise, there are times when it is appropriate to start the
disciplinary procedure at the Written Reminder or the Decision Making
Leave level, without previous disciplinary action having been taken.
This would be the case when an employee commits an offense which is
very serious but does not quite justify termination.

Crisis Suspension

[]  Whatever the company's formal discipline policy may be, it is
important for managers to recognize that there is never a situation
which justifies an employee's being terminated on the spot. Whatever
the offense, the appropriate action is to suspend the individual
pending investigation. Once the employee is off the premises, the
manager and other members of management can investigate the situation
calmly away from "the heat of the moment."  Any time a crisis
situation arises, the manager should advise the individual that he is
being "suspended pending investigation" and that he is to leave the
company premises immediately. In cases where it appears the individual
may be intoxicated or under the influence of some other drug,
transportation should be provided or arranged.

If you commit any of the actions listed below, or any other action not
specified but similarly serious, you will be suspended without pay
pending the investigation of the situation. Following the
investigation you may be terminated without any previous disciplinary
action having been taken.

  1. Theft
  2. Falsification of Company records
  3. Failure to follow safety practices
  4. Conflict of interest
  5. Threat of, or the act of doing bodily harm
  6. Willful or negligent destruction of property
  7. Use and/or possession of intoxicants, drugs or narcotics
  8. Neglect of duty
  9. Refusal to perform assigned work or to follow a direct order

Discipline Deactivation

[]  Most companies provide that if an employee changes his/her
behavior following a disciplinary discussion, fully corrects a
problem, and maintains that improvement for a significant period of
time, the employee can have his "slate wiped clean."  Most
organizations provide that the more serious the disciplinary step, the
longer the period of time before it becomes deactivated.

[]  The shortest and longest time periods used by various companies
for disciplinary deactivation based on acceptable performance
following a specific step are provided for below:

  STEP                    Shortest  Longest

  Oral Reminder           3 months  12 months

  Written Reminder        6 months  18 months

  Decision Making Leave   9 months  24 months

[]  Within these time frames an appropriate schedule can be found for
any company.

Step 1 of the procedure (Oral Reminder) will be in effect for [x]
months.

Step 2 (Written Reminder) will be in effect for [x] months.

Step 3 (Decision Making Leave) will be in effect for [x] months.

If no further performance problems occur during the active period, the
discipline procedure will be formally deactivated at the end of the
appropriate time period. Your manager will initiate a memo advising
you of the inactive status of discipline and, when appropriate,
commend you for performance improvement.

Dismissal

[]   Terminations include dismissals, eliminations of positions,
layoffs, non-recalled employees, retirements, or resignations that can
be considered constructive discharge (where an employer makes the
workplace so intolerable for a person that he or she has to resign).

Employment and compensation with [Company] is "at will" in that they
can be terminated with or without cause, and with or without notice,
at any time, at the option of either [Company] or yourself, except as
otherwise provided by law.

If your performance is unsatisfactory due to lack of ability, failure
to abide by [Company] rules or failure to fulfill the requirements of
your job, you will be notified of the problem. If satisfactory change
does not occur, you may be dismissed. Some incidents may result in
immediate dismissal.
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