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Is an owner an employee?
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Is an owner an employee?
Discuss employment-law issues such as family leave, overtime, disabilities law, harassment, immigration and termination.
I recently completed and distributed our companies employee handbooks as requested by the President/Owner of our company. I spent a lot of time researching the items it should contain ... ee, sexual h
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Is an owner an employee?
posted at 6/20/1999 7:00 PM EDT
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Posts: 8
First: 6/9/1999 Last: 9/14/1999 |
I recently completed and distributed our companies employee handbooks as requested by the President/Owner of our company. I spent a lot of time researching the items it should contain ... ee, sexual harassment, fmla, etc. etc. ... and throughout the process went to the owner and told him that I was over my head and didn't feel like the handbook should be my responsibility.
He and his wife (co. Treasurer) went over the book with a fine tooth comb, consultant lawyer, cpa, etc. and christened the book ready to go. So I distributed it. At the end of the book is an acknowledgement to be signed by the employee that they read and understand the items in the handbook. Now the owner of the company says he and his wife, although they work here, are not employees and do not need to and will not sign the book. He said they are not going to abide by all the rules in the book because of their special situation. I say he should at least sign and acknowledge receipt because of the sexual harassment policy. (And forgive the sarcasm asked him if he didn't need to abide by the rules did that mean we could look forward to him coming to work in his fuzzy slippers?) Is he right ... is an owner not an employee? Also, my name is all over this book, if I sign it and he does not do I become legally liable if an employee decides to sue over something it contains? Beth |
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Is an owner an employee?
posted at 6/20/1999 8:54 PM EDT
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Posts: 58
First: 6/14/1999 Last: 2/20/2006 |
I too prepared the employee handbook at my last employer and am in the process of preparing one for my current employer. For my last employer, the attorney never gave me a clear answer as to whether or not the owners were actually "employees" but the handbook states that all information applies to everyone except officers of the company (that would mean them). |
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Is an owner an employee?
posted at 6/21/1999 7:03 PM EDT
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Posts: 2217
First: 6/16/1999 Last: 12/13/2001 |
Well, the short legal answer to your question is "perhaps." An owner might be an employee of the company or the owner could just be that, an owner. In part it depends on the form of the business (corporation, partnership, S corporation, etc.). In part, it depends on the law which is being applied. For example, many cases have had to address the issue of whether a "partner" in a law firm or a professional organization is an "employee" so as to permit him or her to sue for discrimination. The cases are pretty much all over the place, depending on the facts of the situation.
The practical question to your question is "what difference does it make?" Your boss has said that he and his wife will not sign the handbook. Sounds like the end of the argument to me. If an employee refuses to sign the handbook, I guess the boss could fire him or her. If the boss refuses to sign the handbook, I guess the boss could fire himself, but that seems highly unlikely. In fact, knowing that the boss is going to go by special rules (i.e., one of the privileges of being a boss), it probably undercuts the handbook by saying he or she will abide by it. As far as the drafting issues you raise (you cannot tell if the handbook applied to the boss and your name is all over it), it sounds to me as if those are drafting issues. I never put a person's name all over the handbook because if the person leaves, I do not want to have to change the handbook. Furthermore, as I believe every handbook should clearly state that it is NOT A CONTRACT OF EMPLOYMENT, I think most liability can be avoided. If your handbook does not contain these disclaimers, you might want to think about a few more changes. |
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Is an owner an employee?
posted at 6/21/1999 11:30 PM EDT
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Posts: 323
First: 6/15/1999 Last: 9/9/2011 |
Sometimes I feel like an absolute rube when I read things on this forum...what do you mean it "undercuts" the handbook by saying the boss will abide by it???? Certainly there are special privileges that go along with being the boss or working owner, but I'm a little nervous about the boss who would mandate standards of behavior that they would not strive for themselves. What kind of climate does this create in the workplace? (them and us...serfs and lord). |
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Is an owner an employee?
posted at 6/23/1999 5:21 PM EDT
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Posts: 2217
First: 6/16/1999 Last: 12/13/2001 |
Well, let us be realistic. Bosses are different! You or I may not like it (actually, I like it when I am the BOSS, but not when I am the BOSSEE), but a boss gets to be, well, the BOSS.
When I say it "undercuts" the handbook, what I mean is that knowing that some rules just do not apply to the boss, it makes no sense to have him or her sign a handbook which says that he or she could be fired for excessive lateness (for example). That just seems silly to me. Everybody knows it is not true. So why claim anything other than that. I just do not believe that a handbook, or policies, or statements of procedure are mere words on the paper. They are intended to be a truthful statement about the rules of the road. Do not have people sign the rules of the road if the rules do not apply to them. IMHO. |
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Is an owner an employee?
posted at 6/24/1999 7:53 PM EDT
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Posts: 323
First: 6/15/1999 Last: 9/9/2011 |
For the most part, I agree with your humble opinion. But...what about a drug free workplace policy, the harassment policy, and other items of that nature?
And I still contend that consideration must be given to the culture, or climate, "the boss" or "the owner" wants to create for their organization. The smaller the organization (assuming this means greater visabililty of boss), the more critical. |
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Is an owner an employee?
posted at 6/25/1999 6:52 AM EDT
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Posts: 8
First: 6/9/1999 Last: 9/14/1999 |
I think my employers refusal to sign his own company's handbook shows a lack of commitment to not only the letter of what's there but the spirit.
I understand his not having to abide by the same rules in terms of work hours, vacation time etc. But to not stand by his own dress code, sexual harassment, equal opportunity polices etc., shows a lack of belief in them. The book, after all, does say that COMPANY reserves the right to amend and alter the items contained in the book. And will review requests for exemption (like to the policy of not carrying over vacation days) on an individual basis. So, I told him to just sign it and to amend the rules to suit himself as employer. But that he still had to abide by the things that were regulated by State and Federal law. I still can't in good conscience enforce the rule and make other employees sign it, if he won't. |
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