Why Community Associations Need an Employee Manual
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Lawsuits Against Employers for Violations of the Fair Labor Standards Act & Other Employment Claims are on the Rise.
Some community associations have one employee, while others may have a hundred or more employees. Think about it - maybe your community employs a CAM, grounds maintenance people, a concierge, office assistants, front desk personnel, activity coordinators, beach attendants, valet, building engineers, cleaning staff - the list of people necessary to operate many community associations goes on and on. These individuals may have access to sensitive or proprietary information, such as unit owner or resident medical or health related records. When the economy is tight (like now) employment related claims and lawsuits rise dramatically - I read one article that said the number of lawsuits filed against employers for violations of the Fair Labor Standards Act (FLSA) rose by 40% each year for the past several years in a row!
- How will you protect your association from wage and hour claims?
- Do you have time cards or require employees to "clock" in or out?
- Do your employees often work during non-business hours? How do you account for that time?
- What is your association's policy on overtime or "comp" time?
- Do your employees have access to the association's office, unit owner files, keys to units or the Internet?
- Do any of your employees ever enter any of the units when the owner isn't present?
- Do your employees leave the property as part of their job (trips to home depot, bank runs, etc.)?
- What is your policy on allowing employees to perform work for individual unit owners?
- Do any of your employees have use of a unit as part of their compensation package? If so, what policies are in place in that regard? What if someone is hurt in that unit? What if there are damages to the unit? What happens if the association wants to terminate that employee?
- Does your community classify the maintenance person, landscaper, office assistant, bookkeeper or manager as an independent contractor? You may be surprised to learn that such classification may not protect you from employment related claims.
If you are a member of a Board of Directors of a community association and have answered "yes" or don't know the answer to any of these questions, an employee manual should be a priority. Unfortunately, many community associations neglect to spend the time or devote the funds to this task. A well-drafted employee manual can minimize your exposure to both employment related and third-party liability claims - but make sure to have a Labor and Employment Attorney from your state draft and/or review the manual. Since employment laws vary from state to state and change quite frequently, using a 'form' from a neighboring community or from the Internet may do more harm then good.
