Employee Handbooks: What They Cover and What They Do Not Promise

An employee handbook explains workplace rules and benefits. It helps employers apply policies consistently and helps employees know what is expected, but it is not always a contract.

Common sections

• Equal opportunity, anti-harassment and complaint procedures.
• Pay, overtime, timekeeping and breaks.
• Paid time off, sick leave and holidays.
• Attendance, conduct and discipline.
• Technology, social media and confidentiality.
• Safety and reporting injuries.

At-will and disclaimers

Many handbooks state that employment is at will and that the handbook is not a contract. Courts look at the language and how it is used, so promises of specific discipline steps or job security can create problems if they are not meant.

Tips for small employers

1. Follow federal, state and local leave and wage rules, which can be stricter than company policy.
2. Have employees sign an acknowledgment of receipt.
3. Update the handbook when laws change.
4. Apply the rules the same way to everyone.
5. Have an employment lawyer review before relying on it.

Tips for employees

• Read the handbook when you are hired and keep a copy.
• Note the complaint and leave procedures.
• Ask HR in writing if something is unclear.

Policies that are legally important to include

• Equal employment and anti-harassment policy with complaint procedure and anti-retaliation statement.
• Wage and hour policies, including timekeeping and overtime.
• Leave policies required by law, such as family and medical leave, sick leave and jury duty.
• Reasonable accommodation process for disability and religion.
• Safety and workplace injury reporting.
• Whistleblower and reporting rights.

Policies that reduce everyday disputes

1. Attendance and scheduling expectations.
2. Dress code and conduct.
3. Use of company technology, email and social media.
4. Expense reimbursement and travel.
5. Confidential information and outside employment.
6. Discipline and termination process.

Rolling it out well

Give each employee a copy, explain key policies in onboarding and have them sign an acknowledgment. Put the handbook in an easy-to-find place. Update it when laws change or when you add benefits. Keep a record of versions and the date each took effect.

Handbook pitfalls

• Promising specific discipline steps or job security by mistake.
• Using policies that conflict with state law, such as on pay or leave.
• Policies that discourage employees from discussing pay or working conditions, which can violate labor law.
• Failing to follow your own handbook.
• Copying another company's handbook without adapting it.

Remote and multi-state employers

If you employ workers in more than one state, state-specific supplements may be needed. See our guide to hiring your first employee for related steps.

Terms to know

• At-will employment: either side may end employment at any time without cause, subject to law.
• Exempt employee: not entitled to overtime.
• Non-exempt employee: entitled to overtime.
• Accommodation: a change to enable a worker with a disability or religious need to work.
• Retaliation: punishing someone for protected activity.
• Acknowledgment form: a signed statement that the employee received the handbook.

Checklist for building a handbook

1. List the laws that apply to your size and state.
2. Draft plain-language policies with real examples.
3. Add an at-will and no-contract statement.
4. Include complaint and reporting procedures.
5. Have counsel review for state requirements.
6. Distribute, train and collect signed acknowledgments.

Frequently asked questions