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Personnel

Personnel Policies and Procedures

Every nonprofit must have written personnel policies and procedures that standardize the everyday actions and conduct of all employees.

Personnel policies and procedures handbooks should address the following:

• Fair Employment Law including:
  - The Civil Rights Act of 1964
  - Age Discrimination in Employment Act
  - Americans with Disabilities Act
  - Equal Pay Act
• Fair Labor Standards Act of 1938
• Contract labor
• Affirmative Action policy
• Disabilities in the workplace policy, including but not limited to:
  - Drug Free Workplace
  - Human immunodeficiency virus (HIV) and acquired immune deficiency syndrome (AIDS)
• Sexual harassment
• Conflict of interest
• Nepotism
• Recruitment, interviewing, and hiring procedures, including but not limited to:
• 1. job posting
  2. job descriptions
  3. interviewing systems
  4. reference checking and responding to reference checking
• Rules of conduct
• Work hours
• Breaks
• Leave request
• Identification of holidays
• Staff entitlement and procedures
• Confidentiality requirements
• Employee evaluation
• Probationary period
• Termination procedures
• Grievance procedures

All employees must receive and sign a personal copy of the employee personnel policies and procedures handbook. The signed acknowledgment of receipt must be maintained in the employee's personnel file.

It is recommended that nonprofits develop an Agency Policies and Procedures Manual. It is recommended that the manual be readily accessible to all employees and include all policies and procedures, including personnel policies that the governing body passes.

Personnel Files

All nonprofits must maintain a personnel file for each employee. Each file must include at least the following information:

• employment application and/or resume
• job description
• all performance evaluations
• any status or classification change
• letters of praise or criticism
• all disciplinary actions
• documentation of orientation, training, and staff development
• signed acknowledgment of receipt of personnel policies and procedures handbook
• signed acknowledgement of a confidentiality agreement

All payroll information, including time sheet, tax form, and voluntary/involuntary deductions must be filed in the payroll information file, the personnel files, or in accordance with the nonprofits financial policy and procedures.

Nonprofits must have written policies regarding employees' right to access their personnel files.

All health and medical information must be maintained in a separate file.

The U.S. Department of Justice Immigration and Naturalization Service Employment Eligibility Verification Form I-9 must be completed on each employee.

Complaints, allegations, and investigation documents of the Fair Employment law must be maintained in a separate file.

It is recommended that personnel files and any other confidential information be kept under lock.

Fair Labor Standards

The Fair Labor Standards Act of 1938 requires employers to identify each position as exempt or non-exempt.

Nonprofits must identify in writing all positions as exempt or non-exempt.

It is recommended that nonprofits have written policies on compensation for non-exempt employees that are consistent with the Fair Labor Standards Act.

It is recommended that nonprofits have written compensatory/flex time policies for exempt staff that is consistent with the Fair Labor Standards Act.

Contract Labor

A contract labor employee is paid a specific amount for a specific task and sets his/her own schedule. A contract laborer is a person who delivers a specific service, regardless of the hours required.

Under contract arrangements, the contractor is responsible for payment of all employment and income taxes and receives no benefits from the employer (insurance, leave, etc.) Contract laborers are not on the nonprofit's payroll.

If contract labor employees are hired, nonprofits must have written contract labor policies and procedures.

Nondiscrimination Policies

The terms "affirmative action" and "nondiscrimination policies" are interchangeable.

It is recommended that when the staffing pattern is severely out of alignment with the demographics of the community it serves, special actions (e.g. recruitment) be taken to bring balance to the staff to reflect the community it serves.

It is recommended that nonprofits have a written nondiscrimination policy.

It is illegal for an organization to have quotas or designated positions based on race, color, sex, religion, age, national origin, or disability.

Rules of Conduct

Rules of conduct are organizational policies and procedures that define work conduct, rules, and expectations.

Nonprofits should have written rules of conduct and provide these to employees who are hired.

It is recommended that the rules of conduct include:

• Expected behavior towards each other, clients, volunteers, board members, and the public.
• Expectations to follow nonprofit policies.
• Employee and client relationship standards.
• Personal life issues interfering with work performance of self or others.
• Work and break schedules.

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