Page 44 - GIADA-Feb-2018-Final

LEGAL

The Employee Handbook/Manual

By J. Eric Gregory, Attorney, Gregory Law Group, LLC, eric.gregory@thegregorylawgroup.com

No matter how many employees you have that you expect titles to be processed situation as your entire team can simply
at your dealership, an employee manual within 20 days you are 1) making it clear to refer to the employee handbook.
or employee handbook is an essential your employees 2) helping your dealership
tool that you need to properly run your comply with the law and 3) protecting For example, if the manual covers vacation
dealership. In general, you know or your lien interest and making it effective days which it should, when an employee
should know, that having an employee on the day the vehicle is sold. wants to know how much time they can
manual is a good business practice. take off they don’t have to bother you
Aside from the legal aspect of having If you failed to make this expectation clear about it. Also thinking back to “unfair
an employee manual, there are many and a title is processed 23 days after the treatment” if all employees know how
practical implications. sale, the lien is not effective against a third many vacation days the dealership
party that took an interest in before the allows, they won't be wondering if other
First, when you have an issue related to perfection. If you lost your lien protection employees are getting more days. Of
employment you have a document to go and the underlying collateral, you might course, there may be some issues where
to that sets the standards. This can be want to terminate the employee, but the there is no written policy, but having some
used to clarify misconceptions, show your employee may not understand. general guidelines can help deal with even
dealerships intent, outline your standards, those specific situations.
or even prove to a third party what your A lack of understanding can be the
expectations are of your employees. This impetus for issues as employees want to Fourth, everyone wants to be treated fairly.
is key to clarity when issues arise. know that they are being treated the same When your dealership has a written policy,
way as other employees and without a the policy shows that your dealership wants
Second, employees like to know what you clear understanding of your expectation to be fair. That intent goes a long way towards
expect from them. With an employee they may perceive unfair treatment. The good morale in general and in dealing with
manual, you can detail what you, as a perception of unfair treatment can lead to individual employees who are discontented.
dealer, expect from each employee. By disgruntled employees and, ultimately, to We all know that good morale can lead to
letting your team know what you expect lawsuits. greater satisfaction, happier employees and
it is much easier to hold them accountable happier customers who likely will make
to your expectations and “inspect what Third, it is just easier to run a dealership your bottom line better.
you expect.” when you have the same rules for all or
your store’s employees. There's no need for Finally, written policies and procedures
In my continuing education, I give the you to have to get involved in trivial issues can help you deal with lawsuits, potential
example of processing titles. If you state and to think about what to do in a specific Continued on page 44

42 | GIADA Independent Auto Dealer FEBRUARY 2018