Pub. 5 2015 Issue 4

8 AUTOMOBILE DEALER NEWS ILLINOIS www.illinoisdealers.com COUNSELOR’S CORNER BY JULIE A.CARDOSI, LAW OFFICE OF JULIE A. CARDOSI, P.C. Dealership Adoption and Implementation of Employee Handbook S ome dealers have declined having an employee handbook based upon the notion that it might be interpreted as an employment contract, for example, in a legal proceeding. Still other dealers opt not to have an employee handbook believing this affords greater flexibility in dealing with their employees. Generally, these assumptions are not necessarily accurate and do not trump the benefits of having a well-drafted dealership employee handbook. Of course, every dealership must make its own business deci- sion whether or not to have an employee handbook. An employee handbook can be a welcoming employee relations mechanism, notifying new employees about the dealership, its history and the available benefits. The handbook also serves as a means to inform employees about the dealership’s expectations as to employee conduct and performance. It also helps facilitate the ability to defend labor or unemployment compensation claims, particularly where the employee claims he/she did not know the rules or expectations. Well-drafted employment policies that are consistent with applicable laws and regulations, and implemented under that framework, also help dealerships manage risk of li- ability for claims by employees of disparate treatment. Although an adjudication construing a handbook as binding on employer and employee is possible, a properly drafted handbook might help avoid or, at least, insulate the dealership against such a finding through inclusion for example, of disclaimer provisions that state that employees are “at-will” and the handbook is not a contract. Employee handbooks are not “cookie-cutter”. Their contents will depend on many things unique to each dealership, such as the benefits provided, performance expectations and discipline policies. Of course, provisions of the handbook also need to com- ply with applicable federal and state law. Thus, it is important for dealerships to consult with experienced counsel, knowledgeable about this dynamic area of the law, and familiar with dealership operations and the retail automotive business. At a minimum, dealerships should review their handbooks before implementation with qualified counsel to ensure compliance, and thereafter, to