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:

AB 1228 Summary - California Fast Food Law on Wages, Council Authority, and Business Impact

AB 1228 Summary: California Fast Food Law on Wages, Council Authority, and Business Impact

California's AB 1228 law sets a $20 hourly wage for fast food workers and forms a state-level Fast Food Council. It changes employment rules, impacts exempt pay requirements, and raises business cost issues for restaurants and their customers.
Can a 13 Year Old Work - 14 Real Ways for Young Teens to Earn Money Safely

Can a 13 Year Old Work? 14 Real Ways for Young Teens to Earn Money Safely

A 13-year-old can safely earn money through creative, age-appropriate jobs like babysitting, pet care, or blogging. This guide lists 14 proven options that balance responsibility, fun, and parental supervision.
Severance Pay California - What It Includes and How to Change the Terms

Severance Pay California: What It Includes and How to Change the Terms

California severance pay is not legally required, but agreements often include pay, benefits, and legal waivers. Employees can negotiate terms, challenge clauses, and improve severance offers with legal or personal review.
Employment Litigation - Key Issues in Job Termination, Discrimination, and Harassment Cases

Employment Litigation: Key Issues in Job Termination, Discrimination, and Harassment Cases

Employees may sue for job termination, discrimination, or harassment when workplace actions violate federal or state employment rules. This article explains legal protections, common violations, and employee rights involved in workplace-related lawsuits.
Company Morale - 20 Practical Ways to Improve Workplace Culture and Engagement

Company Morale: 20 Practical Ways to Improve Workplace Culture and Engagement

Improve company morale with 20 practical tactics that strengthen workplace culture, boost motivation, and support everyday team interaction. Encourage positivity, increase retention, and support employee satisfaction through real-world practices designed for today's professional environment.
California Mileage Reimbursement 2025 - Rate Details, Methods, and Employer Duties

California Mileage Reimbursement 2025: Rate Details, Methods, and Employer Duties

California employers must reimburse staff for business-related vehicle use based on mileage rates or alternative approved methods. The 2025 policy outlines IRS rates, covered expenses, and mandatory employer responsibilities under California labor law.
Temporary Disability California - Workers’ Compensation Coverage, Benefit Limits, and Qualifying Conditions

Temporary Disability California: Workers’ Compensation Coverage, Benefit Limits, and Qualifying Conditions

Temporary disability in California pays part of your wages after a workplace injury confirmed by an approved medical provider. Eligibility, time limits, and payment amounts depend on work status, legal codes, employer options, and medical updates.
Legal Age to Work in 2025- Employment Limits for Minors

Legal Age to Work in 2025: Employment Limits for Minors

State and federal laws set age, hour, and job restrictions for minors working in 2025 to protect their safety. Review employment limits for children across all fifty states, including agricultural rules, certificates, and non-hazardous job requirements.
Abusive Conduct Under California Law- Definition, Workplace Examples, and Employer Obligations

Abusive Conduct Under California Law: Definition, Workplace Examples, and Employer Obligations

Abusive conduct in California workplaces includes bullying, hostile language, and exclusion that disrupts an employee's job performance. Employers must provide harassment prevention training and meet legal obligations under FEHA and Senate Bill No. 778.
Minimum Wage in San Diego 2025- Updated City and County Pay Rates for Employers

Minimum Wage in San Diego 2025: Updated City and County Pay Rates for Employers

Minimum wage in San Diego City is $17.25 per hour in 2025, while the county rate remains $16.50. Employers must comply with state, city, and county wage laws or face penalties for underpayment and related violations.
California Labor Law - 2025 Employer & Employee Guide to Wages, Breaks, Leave, and Rights

California Labor Law: 2025 Employer & Employee Guide to Wages, Breaks, Leave, and Rights

California’s 2025 labor laws address wages, breaks, overtime, workplace safety, discrimination, sick leave, and employee protections. This guide outlines rules on scheduling, payroll, final paychecks, paid sick time, and employment standards for minors.
California Final Paycheck Law - Payment Timelines, Legal Rules, and Employer Responsibilities

California Final Paycheck Law: Payment Timelines, Legal Rules, and Employer Responsibilities

California employers must follow exact final paycheck rules when employees quit or are fired, or risk paying penalty wages. The article covers payment timing, employer duties, and industry-specific exceptions including film, oil drilling, and agriculture.
Can You Work at 14 in California - Laws, Restrictions, and Permits for 14- and 15-Year-Olds

Can You Work at 14 in California? Laws, Restrictions, and Permits for 14- and 15-Year-Olds

Minors aged 14 can work in California, but strict federal and state labor laws limit hours, industries, and duties. Work permits are mandatory for 14- and 15-year-olds, and employment is subject to revocation if conditions are violated.
How Many Hours Is a 9-5 Job - Daily, Weekly, Monthly, and Yearly Breakdown

How Many Hours Is a 9-5 Job? Daily, Weekly, Monthly, and Yearly Breakdown

A 9–5 job typically means eight hours daily, totaling 40 hours weekly across five standard workdays. Monthly and yearly hours vary depending on vacations, with most averaging 160 monthly and 2,000 annually.
Exempt Employee California 2025 Rules, Salary Thresholds & Classification Tests Explained

Exempt Employee California: 2025 Rules, Salary Thresholds & Classification Tests Explained

California's 2025 exempt employee rules include new salary thresholds for fast food and healthcare workers under state wage laws. Detailed tests determine exemption status based on duties, salary structure, and consistent application of independent judgment.
Fair Chance Employers A 2025 Guide to Compliant and Inclusive Hiring Practices

Fair Chance Employers: A 2025 Guide to Compliant and Inclusive Hiring Practices

Fair chance hiring promotes compliance with evolving state and federal laws that support inclusive recruitment for applicants with records. Employers must assess convictions individually, follow proper procedures, and align background checks with job relevance and legal standards.
PAGA Claims in California How Workers Can File and What Penalties Employers Face

PAGA Claims in California: How Workers Can File and What Penalties Employers Face

Employees in California can file PAGA claims for labor violations and recover civil penalties on behalf of the state. Penalties vary by infraction, and employers may reduce liability if violations are corrected within the allowed timeframe.
How Many Hours Can a 16 Year Old Work A Complete Guide to U.S. Child Labor Laws

How Many Hours Can a 16 Year Old Work? A Complete Guide to U.S. Child Labor Laws

Federal law sets no limit on work hours for 16-year-olds, but many states impose restrictions and nighttime limits. This guide breaks down FLSA rules, state variations, job types, and penalties for violating child labor laws.
New Hire Forms Checklist- Required Documents & Onboarding Essentials for Employers

New Hire Forms Checklist: Required Documents & Onboarding Essentials for Employers

Manage new hire onboarding smoothly using this checklist of required federal, state, and internal employment documents. Meet compliance needs and simplify hiring by collecting tax forms, offer letters, benefits paperwork, and signed policy acknowledgments.
Comp Day Explained - Eligibility, Benefits, and How to Calculate It Correctly

Comp Day Explained: Eligibility, Benefits, and How to Calculate It Correctly

Comp day lets eligible employees take time off instead of receiving overtime pay, offering flexibility in work schedules. This article explains how comp time is calculated, who qualifies, and the differences between comp time and overtime rules.
Work Permit California - Requirements, Age Limits, and Job Restrictions for Minors

Work Permit California: Requirements, Age Limits, and Job Restrictions for Minors

Minors in California need a work permit to get jobs, with specific restrictions based on age, role, and school status. This article outlines age requirements, job limitations, working hours, and exceptions to the state’s work permit rules for minors.
Split Shift Meaning Explained - How It Works, Benefits, Laws, and Real-World Examples

Split Shift Meaning Explained: How It Works, Benefits, Laws, and Real-World Examples

Split shifts divide a workday into separate periods with a long unpaid break, boosting flexibility and reducing staffing costs. This schedule helps businesses meet demand during peak hours while supporting employee well-being and complying with labor laws.
Is California an At-Will State - 4 Key Exceptions You Need to Know

Is California an At-Will State? 4 Key Exceptions You Need to Know

California permits at-will employment, but specific exceptions restrict when employers may legally terminate an employee without explanation. Contracts, public policy, fraud, and fairness-based exceptions can provide legal grounds for challenging terminations.
California Pay Data Reporting - 2025 Deadline, New MENA Category, and Updated Filing Requirements

California Pay Data Reporting: 2025 Deadline, New MENA Category, and Updated Filing Requirements

The 2025 deadline for California pay data reporting brings updated requirements, including MENA classification and new employer obligations. Covered employers must submit demographic wage data by job role, gender, race, and pay band or face financial penalties.
Family Leave California - Paid Family Leave Benefits, Eligibility, and Updates for 2025

Family Leave California: Paid Family Leave Benefits, Eligibility, and Updates for 2025

California’s Paid Family Leave program provides up to eight weeks of partial wage coverage for caregiving and bonding with children. Eligibility criteria and compensation limits have changed for 2025, administered through the State Disability Insurance (SDI) system.
California Child Labor Laws - Key Rules About Work Permits, Hours, and Restrictions for Minors

California Child Labor Laws: Key Rules About Work Permits, Hours, and Restrictions for Minors

California sets strict rules on work permits, hours, and job types allowed for minors under its child labor laws. State and federal rules also limit dangerous tasks and require school attendance for working minors.
California Minimum Wage Increase 2025 - New Rates for State, Fast Food, Healthcare, and Localities

California Minimum Wage Increase 2025: New Rates for State, Fast Food, Healthcare, and Localities

California’s 2025 minimum wage increase sets new statewide, fast food, healthcare, and local rates employers must comply with. Exempt and industry-specific employees face new salary thresholds, impacting wage standards across sectors and jurisdictions.
Background Check California - Laws, What Shows Up, and How to Clear Your Record

Background Check California: Laws, What Shows Up, and How to Clear Your Record

California background checks show criminal history, credit data, education records, and other public details under strict screening laws. Options such as expungement, pardons, and record sealing may remove damaging entries from your personal background file.
How Many Hours Can a Minor Work in California - A Complete Guide to Labor Laws and Restrictions

How Many Hours Can a Minor Work in California? A Complete Guide to Labor Laws and Restrictions

Minors working in California must follow strict hour limits based on age, school attendance, and job category. Employers who violate labor rules risk significant fines and possible criminal consequences.
California Overtime Law - Rules Exemptions Pay Rates and Worker Rights Explained

California Overtime Law: Rules, Exemptions, Pay Rates, and Worker Rights Explained

California overtime law requires non-exempt workers to receive extra pay for working beyond daily and weekly hour limits. Certain employees, including independent contractors and exempt workers, do not qualify for overtime based on legal standards.

Free Consultation