Employee Handbook

An employee handbook provides information and detailed guidance on the company’s workplace code of conduct, policies, procedures, values, expectations, working conditions, and behavioral expectations.

Author: Douglas Wade, Attorney

Email  |  Call (800) 484-4610

The purpose of an employee handbook is to provide information and guidance to employees related to the company’s values, policies, and procedures. Although an employee handbook is not required by law, a company should have a handbook before the first employee is hired.  If your company does not have a handbook, employees and supervisors will have no written guidance to ensure that company values and policies are enforced.

When a company has reached the point where it has established many policies and procedures for its employees and staff to follow, it is time for this information to be recorded in writing, both for ease of reference and for legal protection. By recording these policies and procedures in an employee handbook, an employer can streamline his or her business’ process of onboarding new hires. A major advantage of having an employee handbook is that it can organize a company’s administration while also offering a basis for managing disputes between employees. It even has the ability to protect a business owner from legal action. An employee handbook can serve many purposes, all of which benefit the company by ensuring that workers are aware of their own expectations and the rules governing the business.

However, some employers may worry that by creating an employee handbook, they are merely creating a complex manual of requirements that will cause issues down the road. This fear may cause hesitation when they would otherwise greatly benefit from clearly laying out expectations and policies for employees.

Luckily, almost across the board, employee handbooks are not viewed as legally binding. They are not a contract between employee and employer. However, to be safe, an employer should include certain elements in his or her employee handbook that indicate it is not a legally binding contract. These elements include the following:

  • A paragraph that explicitly says that the company may add, change, or get rid of policies when it so pleases
  • A clear disclaimer that states the handbook is not a legally binding contract and that employment is at will
  • A signature page that does not read like an agreement; rather, it presents more as a confirmation receipt

Paste article, 2 of 3 parts. ensure proper formatting.

What should an employee handbook contain?

An employee handbook is also known as a staff handbook or an employee manual. This document explains a company’s rules, policies, and employee expectations. It is not only one-sided; it also explains what employees may rightfully expect from their employer. When a new employee is onboarded, they receive a copy of the company’s employee handbook to review. After they have reviewed the document, they are given a form to sign that states they have read the entire manual and give their consent to its conditions and terms.

While a business does not have to use an employee handbook, it is helpful and important to have one so that employees understand the company’s procedures. A handbook has the benefit of assuring all workers that there are consistent policies and that everyone is treated equally. This means that a junior employee has the same rights as a senior employee, and there is the expectation of fairness.

Having policies set out in an employee handbook contributes to a much safer, positive, and productive work environment. By including the company’s stance on inappropriate behavior in the handbook, there is much less risk of harmful or improper conduct. In this way, a good handbook can protect a company from sexual harassment, wrongful termination, and discrimination lawsuits. If an employee ever sues their company, an employee handbook can act as a defense by proving that certain policies and procedures were in place.

When should you have an employee handbook?

An employee handbook should include a company’s policies and expectations, both relating to the employer and the employee. It should also review the employer’s legal duties as well as the rights of employees.

There is certain information that an employer must present to an employee for legal reasons. The employee handbook serves as a practical place to put this information because it is then available in one place that can later be easily reviewed. Of course, an employer may want to have separate written agreements with an employee regarding specific policies, like intellectual property rights, arbitration of disputes, nondisclosure agreements, and noncompete agreements. It is wise to consult an employment attorney regarding what policies and agreements are suitable for one’s company, according to industry and other factors.

  • Equal employment opportunity
  • Antiharassment
  • Antiretaliation
  • At-will employment
  • Code of conduct
  • Benefits
  • General employment information
  • Safety and security
  • Pay policies, including meal and rest periods, overtime eligibility, timekeeping, and paydays
  • Family and medical leave
  • Sick leave policy
  • Process for filing a complaint
  • Paid vacation policy
  • Disclaimers (it should be mentioned that the employer may change the handbook policies at any time at their discretion)
  • Assessment process for raises and promotions

Other items that can be placed in an employee handbook are mentioned below. These bits of information are less critical, but are included in many companies’ handbooks:

  • Welcome letter from founder or CEO
  • Company’s mission statement
  • Ideal company culture
  • Annual office closures
  • Standard operating hours
  • Dress code and attendance expectations
  • Promotion/raise policy
  • Progressive discipline or behavior policy
  • A form to sign saying that the employee understands the handbook and agrees to the terms and conditions

If an employer desires additional guidance concerning the production of an employee handbook, they may use the following sources for reference:

  • United States Department of Labor
  • Occupational Safety and Health Administration

A well written employee handbook is essential to an organization’s operation. Once an employer has finished their employee handbook, he or she should make it accessible in an easily accessible format. Usually, companies will save their employee handbook as a PDF or make it available for viewing on the company’s intranet site. It should be noted that a digital copy is simpler to update than a paper copy. In the event of a lawsuit, it is recommended to save previous versions of the handbook and write down dates of any revisions.

How do you write a simple employee handbook?

When putting together an employee handbook, an employer should open with an introduction that provides new workers with a brief overview of the company, as well as the contents of the handbook. This statement should be a reflection of the company’s culture and values.

After, the handbook should delve into specific policies, which should be categorized according to topic, or by non-contractual and contractual status. For instance, an employer may group employee benefits together, and harassment policies separately. Whatever way an employer wishes to design their employee handbook, he or she should be sure to note which policy is contractual and which is non-contractual.

After reviewing their employee handbook, new employees should confirm receipt of the handbook and show that they have read and consented to its contents. This is an especially critical step if the handbook has contractual policies. Consent may be expressed by checking a box, signing a paper copy of the handbook, or sending a confirmation email.

An employer should think about what form he or she wants the handbook to be in. One may choose to use an electronic PDF copy, a copy that is accessible via the company’s intranet, or a hard copy.

Can an employee handbook be changed?

It is good practice for an employer to regularly review their employee handbook. This is important if there have been changes to the company. It is suggested that an employer update their handbook once every year at the very least. If an employer makes reference to any statutory rates in their policies, like pay for sick days, then these should be made current in October and April.

When updates are made to the handbook, staff and employees should be given access to the most updated version for their reference. When an employer makes changes to contractual policies, he or she will need to have their employees agree to the amendments. This is an important step because an employer does not want to risk claims of unfair dismissal or breach of contract. Non-contractual policies, however, may be amended without consulting employees or staff.

Have a quick question? We answered nearly 2000 FAQs.

See all blogs: Business | Corporate | Employment

Most recent blogs:

California Vacation Law Update 2025 Changes to Paid Leave, PFL Use, and Workplace Policies

California Vacation Law Update 2025: Changes to Paid Leave, PFL Use, and Workplace Policies

California’s 2025 vacation law update adds new protections for employees, impacting paid leave, workplace meetings, and contractor agreements. Employers must adjust to expanded worker rights, anti-discrimination rules, and stricter compliance requirements taking effect January 1, 2025.
California Wage Statement Rules What Must Be Shown and What to Do If Your Pay Stub Has Errors

California Wage Statement Rules: What Must Be Shown and What to Do If Your Pay Stub Has Errors

California employers must provide accurate pay stubs detailing wages, deductions, hours, and other required information under state labor laws. Employees may seek penalties, back pay, and legal action if wage statements contain errors or missing details.
What Paid Holidays Are Mandatory in California Employer Requirements, Exemptions, and Federal Worker Pay Rules

What Paid Holidays Are Mandatory in California? Employer Requirements, Exemptions, and Federal Worker Pay Rules

California law does not require private employers to provide paid holidays, though many offer them voluntarily for employee satisfaction. Federal employees in California may receive holiday premium pay, depending on eligibility and agency rules.
California Employee Rights Workplace Discrimination, Wages, and Legal Protections

California Employee Rights: Workplace Discrimination, Wages, and Legal Protections

California employees have rights covering discrimination, wages, and workplace safety under state and federal laws. This guide outlines protections against unfair treatment, retaliation, and wage violations.
SB 616 Key Changes to California Paid Sick Leave Law Every Employer Should Know

SB 616: Key Changes to California Paid Sick Leave Law Every Employer Should Know

California’s SB 616 increases paid sick leave from 24 to 40 hours, requiring policy updates for statewide employer compliance. Employers must adjust accrual, carryover, and usage rules, update handbooks, train staff, and ensure payroll accuracy.
Onboarding Paperwork Checklist 10 Key Documents Every Employer Needs for New Hires

Onboarding Paperwork Checklist: 10 Key Documents Every Employer Needs for New Hires

Onboarding paperwork supports compliance, payroll accuracy, and smooth integration for new hires with important legal, tax, and organizational documents. This checklist outlines 10 vital records employers should provide to support efficiency, clarity, and a positive start for every employee.
Resentment Examples at Work 6 Ways Workplace Tension Takes Hold

Resentment Examples at Work: 5 Ways Workplace Tension Takes Hold

Workplace resentment can silently erode trust, collaboration, and morale, leading to lasting cultural damage if left unchecked. Recognizing resentment examples helps address unresolved conflict, burnout, and broken promises before they harm productivity and team relationships.
How Many Hours Can You Work at 15 State-by-State Guide to Teen Work Limits in the U.S.

How Many Hours Can You Work at 15? State-by-State Guide to Teen Work Limits in the U.S.

Teen work laws set limits on hours for 14- and 15-year-olds, varying by state and job type. Find out work restrictions, permitted jobs, and tips for landing your first position at 14 or 15 in the U.S.
CA Exempt Salary 2025 - Minimum Wage and Exemption Updates for California Employers

CA Exempt Salary 2025: Minimum Wage and Exemption Updates for California Employers

California's 2025 exempt salary threshold increases to $68,640 annually, with minimum wage rising to $16.50 statewide. New laws also impact sick leave, union exemptions, captive audience meetings, and driver’s license requirements for job postings.
How Long to Keep Payroll Records in California - Employer Rules for 2025

How Long to Keep Payroll Records in California: Employer Rules for 2025

Employers in California must retain payroll and personnel records for up to four years to remain compliant with 2025 regulations. Digital and physical storage methods, I-9 rules, and supervisor training responsibilities are also covered in the updated requirements.
California Fair Chance Act - Updates Employers Need to Know About Criminal History Rules

California Fair Chance Act: Updates Employers Need to Know About Criminal History Rules

Employers in California must follow stricter rules on criminal history checks under the updated Fair Chance Act from October 2023. New regulations expand definitions, require tailored evaluations, and mandate written notices before rejecting candidates due to conviction records.
Breaks in California - Detailed Guide to Rest and Meal Break Rules for Employers

Breaks in California: Detailed Guide to Rest and Meal Break Rules for Employers

California employers must follow detailed rules for rest and meal breaks, including timing, written waivers, and compensation requirements. Improper or missed breaks can result in legal action, wage penalties, and issues related to industry-specific labor standards.
California Labor Code 1198.5 - Employee Rights to Personnel Records and Employer Compliance Guide

California Labor Code 1198.5: Employee Rights to Personnel Records and Employer Compliance Guide

Employees in California can request access to personnel and payroll records under strict timelines defined by Labor Code 1198.5. Employers must comply with requests within 21 to 30 days or face penalties for noncompliance with record access laws.
Reporting Time Pay in California - Worker Rights, Employer Rules, and How to Calculate It

Reporting Time Pay in California: Worker Rights, Employer Rules, and How to Calculate It

California workers must be paid for reporting time if sent home early or given fewer hours than scheduled. This article covers when wages apply, what exceptions exist, and how employers calculate the correct amount under state law.
California Wrongful Termination Checklist - A Full Guide to Employee Rights and Legal Protections

California Wrongful Termination Checklist: A Full Guide to Employee Rights and Legal Protections

Fired in California for reporting misconduct, discrimination, or taking leave? This checklist breaks down employee rights and wrongful termination claims.
California Labor Code 203 - Employer Guide to Penalties, Defenses, and Compliance Measures

California Labor Code 203: Employer Guide to Penalties, Defenses, and Compliance Measures

California Labor Code 203 imposes steep penalties for late final pay, requiring strict employer compliance. This guide covers penalty triggers, common mistakes, defenses, and steps to prevent wage claim liability.
When Is a Doctor’s Note Required for Work in California - Employee Rights, Sick Leave Rules, and Employer Policies

When Is a Doctor’s Note Required for Work in California? Employee Rights, Sick Leave Rules, and Employer Policies

California employees can use paid sick leave without a doctor's note unless absences exceed three consecutive days. Employers may request documentation only if policies are applied fairly, non-retaliatory, and consistent with privacy laws.
California Labor Code 2699 Reform- What Employers Should Know About the 2024 PAGA Amendments

California Labor Code 2699 Reform: What Employers Should Know About the 2024 PAGA Amendments

California’s 2024 PAGA amendments change employer obligations, lower penalties, and set faster resolution methods for labor disputes. Companies should check compliance policies, wage practices, and training to prevent costly Private Attorneys General Act claims.
California Termination Laws Final Pay- What Employees Should Know About Last Paychecks and Penalties

California Termination Laws Final Pay: What Employees Should Know About Last Paychecks and Penalties

California employees are entitled to timely final paychecks after quitting or termination, with strict rules based on job type. Employers risk daily penalties up to 30 days if they delay owed wages or ignore payment regulations.
California Workplace Violence Prevention Plan- Employer Responsibilities

California Workplace Violence Prevention Plan: Employer Responsibilities

California employers must establish a Workplace Violence Prevention Plan by July 1, 2024, under Senate Bill 553 requirements. This plan includes risk assessments, employee training, incident reporting, crisis response, and recordkeeping to promote workplace safety.
Is It Illegal to Discuss Wages at Work What Employers and Employees Should Know

Is It Illegal to Discuss Wages at Work? What Employers and Employees Should Know

Employees have the legal right to discuss wages at work, even if company policies say otherwise. Employers can support fair pay and open communication to help maintain trust and reduce workplace conflicts.
How Long to Keep Pay Stubs and Payroll Records- IRS, FLSA, and Legal Rules Business Owners Should Know

How Long to Keep Pay Stubs and Payroll Records: IRS, FLSA, and Legal Rules Business Owners Should Know

Keep payroll records and pay stubs organized to meet IRS, FLSA, and legal requirements for audits, claims, or disputes. Storing records digitally reduces space use and keeps documents available beyond the required minimum retention periods.
California Mileage Rate 2025 IRS Figure, Reimbursement Policy, and Employer Instructions

California Mileage Rate 2025: IRS Figure, Reimbursement Policy, and Employer Instructions

California’s mileage reimbursement rate in 2025 is 70 cents per business mile, covering fuel, maintenance, insurance, and depreciation. Employers must ensure reimbursement complies with Labor Code Section 2802 and requires accurate mileage records from employees.
California Labor Code Section 2802- Employer Reimbursement Rules for Work Expenses

California Labor Code Section 2802: Employer Reimbursement Rules for Work Expenses

California employers must reimburse workers for necessary expenses like phones, internet, mileage, and home office equipment. Employees can recover unpaid reimbursements through Labor Commissioner claims or class action lawsuits against violating employers.
Double Time California- When Employers Are Required to Pay Twice the Regular Hourly Rate and How It Is Calculated

Double Time California: When Employers Are Required to Pay Twice the Regular Hourly Rate and How It Is Calculated

California employers must pay double-time wages in situations like 12-hour shifts or working seven days without a break. This article covers who qualifies, common payroll mistakes, and how double-time compensation should be figured under California law.
Tip Pooling Rules in Every State- What Restaurant Owners Must Know

Tip Pooling Rules in Every State: What Restaurant Owners Must Know

Tip pooling laws vary by state, affecting how restaurants manage tips and comply with federal and local wage rules. Restaurant owners are required to follow guidelines to avoid fines, lawsuits, and disputes over tip distribution and service charges.
How Long Does an Employer Have to Pay You After Payday in California- Legal Timeframes, Rules, and Consequences

How Long Does an Employer Have to Pay You After Payday in California: Legal Timeframes, Rules, and Consequences

Employers in California must pay wages on time or face fines, including back pay and waiting time penalties for delayed checks. Employees may pursue compensation for late or missing pay through legal claims tied to payroll violations under state labor law.
CA Exempt Employee Classification- Definitions, Exemptions, and Legal Exposure for Employers

CA Exempt Employee Classification: Definitions, Exemptions, and Legal Exposure for Employers

Employers risk lawsuits and large settlements when CA workers are misclassified under state exemption rules. Roles must be reviewed regularly to match duties.
How to Get a Job at 14- Simple Steps for Teens Who Want to Start Working

How to Get a Job at 14: Simple Steps for Teens Who Want to Start Working

Many teens can get jobs at 14 with the right documents, clear goals, and a simple but effective resume. This article explains rules, permits, applications, interviews, and ways to stay focused during your first job search.
How Many Hours Can a 17-Year-Old Work in California During School Labor Rules You Should Know

How Many Hours Can a 17-Year-Old Work in California During School? Labor Rules You Should Know

California limits how many hours 17-year-olds can work during school to protect their safety, education, and wages. Know the labor rules that apply to minors and what families should do if employers violate state employment laws.

Free Consultation