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QUICK TIP: SOME THINGS DO NOT GET BETTER WITH AGE
Put this into the category of learning from the mistakes of others . . .
- Our client, Al Datid, paid a lawyer to develop a Policy and Procedures Manual a decade ago. Al distributes the Manual to all employees and, as he was instructed by his lawyer, he abides by the Manual in all aspects of his business. The Manual sets forth a detailed procedure for paying overtime, how to use "comp time," and related employee-compensation topics.
- Al also uses a standard form employment agreement that was written ten years ago - it has always served him well. The form sets forth a procedure to be followed when an employee is sick, or needs time to handle a family emergency.
- Finally, Al, a product manufacturer, uses a customer sales agreement, also many years old, that seeks to limit the damages for which Al can be liable in the event of a problem. It also sets forth other terms of sale that Al believes will protect him should a deal go awry.
Standard forms do not get better with age. Al's Manual fails to incorporate recent changes in the law regarding overtime and comp time. His Manual not only sets him up for a major liability, it will serve as the government's "Exhibit A" in the prosecution. As for the employment agreement, it serves as proof positive that Al regularly violates the Family Medical and Leave Act, which was enacted after the form was drafted. And as for Al's sales agreement, many of its provisions have been invalidated by changes in the Uniform Commercial Code and other federal and state legislation. Al is, figuratively, relying on an insurance policy that lapsed years ago.
The moral to the story is this: standardized, form documents can provide a great benefit, and should be employed wherever possible. But you have to treat them as if they are perishable, not to be used after their expiration date. Diary them ahead for periodic review.
SUMMARY - Stay current; do not be Al Datid.
Powell, Trachtman, Logan, Carrle & Lombardo, P.C. is a full service law firm with offices in suburban Philadelphia, PA, Harrisburg, PA and Cherry Hill, NJ. Powell Trachtman represents a variety of commercial enterprises, entrepreneurs and business executives in respect to their litigation, litigation avoidance planning, business formation, business transactions, estate and tax planning, and other needs. We are also approved defense counsel for numerous insurance carriers in matters pertaining to professional malpractice, products liability, employment practices, directors and officers liability, and many other fields. For more information, contact us at info@powelltrachtman.com and visit our website at www.powelltrachtman.com.
