What Policies Must Be Included in an Employee Handbook?

Introduction

If you're creating an employee handbook, one of the most important questions is:

What policies are legally required — and which ones are simply recommended?

While requirements vary by state and company size, there are core policies that every small business should include to reduce legal exposure and maintain consistent workplace standards.

This guide outlines the essential policies that must be included in an employee handbook and explains why they matter.

1. Equal Employment Opportunity (EEO) Policy

An Equal Employment Opportunity policy states that your company does not discriminate based on protected characteristics such as:

• Race

• Color

• Religion

• Sex

• National origin

• Age

• Disability

• Other protected classifications under applicable laws

This policy establishes a foundation of fair employment practices and is considered standard in virtually all professional workplaces.

2. Anti-Harassment Policy

Most states require employers to clearly communicate workplace harassment policies. A compliant anti-harassment section should include:

• A definition of prohibited conduct

• Reporting procedures

• Investigation procedures

• Protection against retaliation

This policy is one of the most important risk-reduction tools in your entire handbook.

3. At-Will Employment Statement (Where Applicable)

In many states, employment is considered “at-will,” meaning either party may terminate the employment relationship at any time, subject to applicable laws.

Including an at-will statement clarifies the nature of employment and helps prevent misunderstandings about job security.

4. Attendance and Work Hours Policy

Your handbook should define:

• Work schedules

• Tardiness expectations

• Absence procedures

• Overtime rules (if applicable)

This ensures consistency in how attendance issues are handled.

5. Wage and Payroll Policies

While not all payroll details need to be included, your handbook should outline:

• Pay schedule

• Overtime eligibility

• Direct deposit procedures

• Payroll dispute processes

Clear payroll policies reduce administrative confusion and employee questions.

6. Leave Policies

Depending on your state, certain leave policies may be legally required. Common examples include:

• Sick leave

• Family and medical leave

• Jury duty leave

• Military leave

Even when not legally mandated, documenting leave policies improves transparency.

7. Workplace Safety Policy

Employers are generally required to provide a safe work environment. Your handbook should include:

• General safety expectations

• Incident reporting procedures

• Emergency protocols

This applies to office, remote, and physical workplaces alike.

8. Code of Conduct Policy

A code of conduct outlines acceptable workplace behavior, including:

• Professional standards

• Anti-discrimination practices

• Substance policies

• Confidentiality expectations

This policy creates a consistent workplace culture.

9. Technology and Acceptable Use Policy

As businesses increasingly rely on digital tools, a technology policy should address:

• Internet usage

• Email usage

• Data security

• Confidential information protection

This helps safeguard business information.

10. Employee Acknowledgment Form

Finally, your handbook must include an acknowledgment form confirming that employees:

• Received the handbook

• Understand the policies

• Agree to follow workplace rules

Signed acknowledgments are critical documentation if disputes arise.

State-Specific Considerations

Certain states require additional policies, such as:

• Paid family leave disclosures

• Pregnancy accommodation policies

• Domestic violence leave

• Specific anti-harassment language

Because requirements vary by state, using state-aware handbook templates helps ensure compliance.

Final Thoughts

While not every policy is legally mandated in every state, including these core policies significantly reduces risk and strengthens workplace clarity.

A professionally structured employee handbook protects your business, supports compliance, and creates consistency as your team grows.

If you want a faster way to generate a handbook tailored to your company size and state requirements, you can create one in minutes using DraftHandbook.