Employee Handbooks - Why?

If a company has employees, it should have an employee handbook. ​

  • Protection from lawsuits by establishing consistent policies and enforcement

  • For compliance with federal, state and local employment laws and protection from lawsuits by showing 

  • Clarity around company policies and procedures for performance management and termination

  • Communicate company values and expectations

  • Clarity for employees around company policies, PTO, benefits, and requirements.

Small Businesses
(1-10 employees)

  • Strongly recommended if hiring employees.

  • Even a simplified handbook can set expectations and prevent disputes.

  • Helps ensure legal compliance, particularly for hiring, wages, and termination.

Growing SMBs

(10-50 employees)

At this stage, businesses face more HR complexities and should have a formal handbook.

Establishes clear policies for new hires and independent contractors.

Helps avoid inconsistencies in how employees are treated.

Medium-Sized Businesses

(50-500 employees)

Federal employment laws (e.g., FMLA, ADA, and EEOC) start to apply.

Helps HR manage policies, benefits, and legal risks.

Essential for ensuring a consistent and scalable company culture.

What is an Employee Handbook?

An employee handbook is a formal document that outlines a company's policies, procedures, and expectations for employees. It serves as a guide for workplace behavior, company culture, benefits, and legal compliance. Typically, it includes sections on:

  • Company mission, values, and culture

  • Employment policies (e.g., at-will employment, equal opportunity)

  • Workplace conduct (e.g., harassment policies, code of ethics)

  • Compensation and benefits (e.g., pay structure, health benefits)

  • Work hours, leave policies, and remote work guidelines

  • Disciplinary procedures and conflict resolution

  • Safety and security policies

  • Legal rights and obligations of both employer and employee

The handbook is both an operational tool and a legal safeguard that helps prevent misunderstandings and ensures consistent policy enforcement.

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