Free Employee Handbook Template (Small Business Edition)

Introduction

If you searched for a free employee handbook template, you’re not alone.

Every week, thousands of small business owners look for a simple, downloadable employee handbook they can give to their team without hiring a lawyer or spending thousands of dollars.

The problem?
Most free templates are incomplete, outdated, or not legally safe for your state.

This guide gives you:

• A free starter template
• A checklist of what your handbook must include
• A safer way to generate a state-specific, compliant version

What Is an Employee Handbook?

An employee handbook is the document that explains:

• Company policies
• Employee rights
• Workplace rules
• Benefits
• Termination & discipline
• Legal protections for both you and your employees

It protects you from lawsuits, misunderstandings, and compliance issues — if it’s written correctly.

Can I Use a Free Employee Handbook Template?

Yes — as a starting point.
No — if you want to stay legally safe.

Free templates usually:

• Are written for one state (often California)
• Don’t include required policies for your state
• Miss key compliance language
• Haven’t been updated for new laws

Using the wrong template can be worse than having no handbook at all.

Free Employee Handbook Template (Starter Version)

Here is a safe starter outline you can copy into a document:

Employee Handbook Template (Basic)

1. Welcome & Company Values
Brief introduction to your business and expectations.

2. Employment Policies
• At-will employment
• Equal opportunity
• Anti-harassment
• Non-discrimination

3. Work Hours & Pay
• Payroll schedule
• Overtime
• Breaks

4. Time Off
• Vacation
• Sick leave
• Holidays

5. Workplace Rules
• Attendance
• Dress code
• Technology use

6. Benefits (if applicable)
• Health insurance
• Retirement
• Other benefits

7. Safety & Security
• Emergency procedures
• Workplace safety

8. Discipline & Termination
• Progressive discipline
• Final pay

This template is a framework — not a legally complete handbook.

What’s Missing From Free Templates

Every U.S. state requires different policies, such as:

• Paid sick leave
• Family leave
• Domestic violence leave
• Jury duty
• Pregnancy accommodations
• Meal & rest breaks
• Marijuana policies
• Wage theft protections

A generic template cannot include these correctly for all 50 states.

The Safer Way to Get a Free Handbook

Instead of guessing, you should use a system that:

• Asks your state
• Asks your company size
• Asks what benefits you offer
• Builds the right policies automatically

That’s exactly what DraftHandbook does.

You answer a few questions.
You get a custom DOCX + PDF within 24 hours.

Want a Free State-Specific Checklist?

Before you download any template, get the checklist.

Free: State-Specific Employee Handbook Checklist

Avoid missing required policies for your state.

Get the checklist →

(You can email it manually at first — no automation needed.)

Final Thoughts

Free employee handbook templates are helpful — but dangerous when used alone.

If you want something fast, simple, and legally safer, a state-specific generator beats every free PDF online.

That’s why DraftHandbook exists.