36 THE QUEENS COURIER • JUNE 11, 2015 FOR BREAKING NEWS VISIT www.queenscourier.com business Employment Matters – Employee Handbooks, Who Needs Them? Dear Mindy, I am a small business owner with less than 20 employees. Is it necessary for me to have an employee handbook? Wondering Dear Wondering, There are many good reasons for all employers, no matter how small, to have an employee handbook. Here are fi ve of them: 1. Ensures Compliance with Federal and State Laws No matter how many employees you have, you will be subject to state and federal employment laws. Your handbook not only communicates employee rights and obligations, but is useful in demonstrating that your organization strives to be compliant with these regulations. Policies that should be included in a handbook include military leave, state disability leave, wage and hour requirements and other government mandates. 2. Communicates Your Expectations to Your Employees A well-written handbook provides employees with a clear understanding of their responsibilities as well as the organization’s policies and procedures. It advises employees whom they should contact when they want to report workplace violations, get workplace-related assistance or get answers to questions regarding the policies in the handbook. The handbook should contain the employee’s general responsibilities including safety procedures, timekeeping policies and procedures for requesting time off. The Elder Law Minute TM 3. Helps Ensure Key Company Policies are Clearly and Consistently Communicated Company policies are only effective if they are practiced consistently. An employee handbook will accurately document your organization’s policies regarding employment, conduct and behavior, compensation, and other policies and procedures your organization follows. Managers can refer to the handbook when answering questions or making decisions regarding your policies, and ensure their answers and actions are consistent with your policies and best practices. 4. Showcases the Benefi ts the Organization Offers If your organization offer vacations, 401k, health insurance, tuition reimbursement or other benefi ts to employees, make sure they know about these policies by communicating them in the handbook. A robust benefi ts package can help you retain your best employees, so be sure they know about all the benefi ts you offer by communicating them in the employee handbook. 5. Helps Defend Against Employee Claims In the event of a lawsuit or similar challenge from an employee, your employee handbook is one of the most useful documents you can provide your attorney. A thorough and compliant handbook will help to show that the organization exercised “reasonable care” towards its employees. The employee’s signed acknowledgement page will show that the employee had an opportunity to familiarize themselves with the organization’s policies, a chance to ask related questions, knew whom they could turn to for help within the organization, and agreed to follow the terms and conditions of employment as set forth by the organization. By providing clear, accurate and accessible information, your employee handbook will ensure your organization follows best practices that encourage trust and respect between the organization and the employees and fosters a productive work environment. Mindy Stern, SPHR, SHRM-SCP, ACC is a trusted HR advisor, career coach, author, speaker and president of AIM Resource Group Inc. If you would like to get more information about how to avoid compliance mistakes call for a free 30 minutes strategy session. Visit the website at www.aimresourcegroup.com or call 718-217-1074 to get RESULTS! Do you want your questions answered in this column? Send requests to mstern@aimresourcegroup. com New Reverse Mortgage Rules Go Into Effect BY RONALD A. FATOULLAH, ESQ., ELIZABETH FORSPAN, ESQ. AND AARON MOSS On April 27th, the new rule requiring a fi nancial assessment as part of any reverse mortgage application went into effect. The Department of Housing and Urban Development (HUD) had originally announced the rules in September 2013. As part of the fi nancial assessment, the mortgagee (i.e. the bank) must analyze the mortgagor’s (borrower’s) ability to pay the expenses he will incur during the period of the mortgage. The mortgagee should look at a number of factors, including, but not limited to, the borrower’s credit history, income, benefi ts, and assets. If the credit history is troublesome, mortgagees should consider whether there are “extenuating circumstances” that caused the fi nancial problems. Some examples given by HUD include the loss of income due to the death of a spouse, unemployment, or emergency medical hospitalization. In the event that the mortgagee determines the mortgagor lacks the ability to meet his fi nancial responsibilities, the mortgagee must establish a Life Expectancy Set-Aside. This would guarantee that there is money available to pay the bills and thereby avoid default. Alternatively, the mortgagee may authorize the mortgagor to pay the property charges from the mortgage proceeds by withholding the funds from the monthly payment due the mortgagor or by charging the funds to the line of credit. In the Courier Senior December 2014 edition, we presented the pros and cons of obtaining a reverse mortgage. Available to anyone age 62 and over, a reverse mortgage enables a homeowner to cash out the equity on his/her residence, provided that he has paid off most, or all, of his traditional mortgage. In the event that too large a percentage is still owed on the traditional mortgage, the homeowner will be required to use some of the proceeds from the reverse mortgage to repay it. One of the benefi ts of a reverse mortgage is that there are no monthly payments. Instead, the loan is repaid when the home is sold, when the borrower dies, or when the borrower fails to live in the home for 12 consecutive months. Even though there are no monthly payments on a reverse mortgage, the homeowner remains responsible for property taxes, insurance and maintenance As a result, according to the Department of Housing and Urban Development (HUD), 9.8% of reverse mortgages are in default. Reverse mortgages can certainly be a useful tool when used appropriately. Unfortunately, many homeowners have had trouble paying for the other assorted expenses and have ended up in default. Hopefully, the new fi nancial assessment requirement from HUD will be helpful in preventing homeowners from obtaining unsuitable reverse mortgages . Ronald A. Fatoullah, Esq. is the principal of Ronald Fatoullah & Associates, a law fi rm that concentrates in elder law, estate planning, Medicaid planning, guardianships, estate administration, trusts, wills, and real estate. Elizabeth Forspan, Esq. is the managing attorney at the fi rm. Aaron Moss, a summer associate with the fi rm, attends the University of Maryland School of Law, where he is an Associate Editor of the Maryland Law Review. The law fi rm can be reached at 718-261- 1700, 516-466-4422, or toll free at 1-877-ELDERLAW or 1-877-ESTATES. Mr. Fatoullah is also the co-founder of JR Wealth Advisors, LLC. The wealth management fi rm can be reached at 516-466-3300 or 800-353-3775. ELDER LAW RONALD FATOULLAH ESQ, CELA*
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