What to Include in an Employee Handbook

An employee handbook is more than just an important onboarding document. It outlines your company's mission, culture, policies, and procedures. A handbook lets all employees know their rights and responsibilities. It also functions as a legal roadmap that ensures compliance with local, state, and federal labor laws. Your employee handbook will also reinforce organizational culture by explaining expectations and codes of conduct, while establishing consistency for everyone.

If you're wondering what to include in an employee handbook, keep reading.

Core Policies Every Employee Handbook Should Include

A comprehensive employee handbook should start with these core policies:

At-Will Employment Statement

The at-will employment statement should clarify that employment is voluntary and can be ended by either party at any time, with or without cause or notice. This sets clear expectations and can protect your organization from a wrongful termination suit down the road.

Equal Opportunity Employment

Your equal opportunity statement simply explains that hiring and promotion practices will be free from bias and will adhere to all relevant labor laws. It should explain protections based on legally protected characteristics, including race, gender, age, and religion.

Anti-harassment and Non-discrimination Policies

Policies on anti-harassment and non-discrimination will define prohibited behaviors and explain reporting procedures. These policies should set a zero-tolerance standard for sexual harassment, bullying, and retaliation.

Code of Conduct and Ethics

The code of conduct for your organization should encourage accountability and integrity. This section should describe standards for professional behavior, confidentiality requirements, and the core values everyone should adhere to.

Attendance and Punctuality

A section on attendance and punctuality will set work-hour expectations, break and leave procedures, and consequences for tardiness or unexcused absences.

These core policies in your employee handbook form the backbone of legal compliance, a consistent culture, and transparent expectations for everyone.

Compensation and Benefits

Pay and benefits will be extremely important for every employee in your organization. The clear guidelines that you establish in this section will help to build trust and retain employees. Your employee handbook should include the following sections as a guide.

Pay Schedule and Timekeeping Expectations

This section of the employee handbook guide should explain when and how employees are paid (biweekly vs. monthly, paper check vs. direct deposit, and so on). It should provide guidelines on proper timekeeping methods, such as a traditional time clock or geofence punching. Let employees know that these policies ensure timely compensation and reduce payroll errors.

Overtime Policy

What constitutes overtime? Who is eligible for it? How is overtime calculated and approved? This section should reference applicable federal and state laws, including the Federal Labor Standards Act (FLSA).

Holidays, PTO, and Leave Policies

This section should provide a list of recognized company holidays. It should explain whether holidays are paid days off and any payment policies for when employees must work on those days. Paid time off (PTO) accrual rates should also be explained in this section. It should also include unpaid leave, such as family or medical leave, and any state-specific entitlements.

Health Insurance and Retirement Benefits Overview

This section doesn't need to be highly specific. It can be more of a broad overview of available benefits for employees, such as health insurance. Detail eligibility requirements, enrollment periods, and retirement plan benefits.

Workplace Rules and Procedures

These guidelines in your employee handbook guide will help support a culture of accountability in the workplace.

Technology Use and Social Media Policy

Explain the acceptable uses of the company's devices, internet access, and email system. It's increasingly common in employee handbooks to include expectations on personal social media postings, especially when referencing the employer.

Dress Code or Workplace Attire

From business casual to uniforms or safety gear, this section should define appropriate attire based on the work environment. You should also note whether there is any flexibility for remote or hybrid roles.

Safety and Security Policies

The Occupational Health and Safety Administration (OSHA) requires companies to maintain written safety programs for certain industries. Some states also have specific requirements for this section. Even if they're not required for your industry, it's a good idea to include procedures for reporting hazards and responding to emergencies.

Confidentiality and Data Protection

The section should reinforce the importance of keeping sensitive company information private. You should include rules for proprietary data, digital safety protocols, intellectual property, and any other sensitive information that the company owns.

Company Culture and Values

This section of the handbook provides an opportunity to foster a sense of belonging while aligning your employees with the company's broader mission.

Mission and Vision Statement

What is your company's purpose, and what are its long-term goals? Clearly explaining these will help employees understand the "why" behind the work they do. It also explains how they fit into the bigger picture of the organization.

Workplace Expectations and Team Communication

This section should define how teams are expected to collaborate, communicate, and resolve conflicts.

Disciplinary Procedures

Employee misconduct and performance issues should have a clear and consistent process for addressing them. This section should include sections on escalation for repeated violations of company policies. For example, disciplinary action might start with a verbal warning, and then escalate to a written warning and finally, termination. You should also reserve the right for managers to handle serious problems immediately.

Acknowledgment and Updates

A formal acknowledgment process and regular updates are the best way to keep an employee handbook enforceable and relevant.

Signed Acknowledgment Form

You should have every employee sign an acknowledgment form confirming that they received, read, and understood the employee handbook. A completed form (which can also be digital) should be kept with the employee's HR documentation. This form provides legal proof that your policies were communicated clearly and effectively. This can be invaluable in the event of an employment dispute.

Review and Update Schedule

How often should you review and update your employee handbook, if needed? At least once a year is a good rule of thumb. It may need to be reviewed more frequently if new employment laws or regulations come into effect, or if there are significant internal changes at your organization.

Get Expert Support for Your Employee Handbook

Need help with your employee handbook? Exact Payroll provides full-service human resources consulting. Our solutions are built around core principles that include accuracy, customization, and compliance. We can provide you with essential tools like policy templates, hiring and onboarding assistance, time tracking, and much more.

Contact us at Exact Payroll today to schedule a consultation on your employee handbook and what to include in it.