An employee handbook is a document given to employees that outlines your company's policies, procedures, and expectations. It's the playbook for how your business operates, what you expect from employees, and what employees can expect from you. For restaurants, retail stores, and service businesses with shift workers, a well-crafted handbook prevents confusion, ensures consistency across locations, and protects you legally.
Why You Need an Employee Handbook
Many small business owners skip the handbook, thinking it's unnecessary bureaucracy. That's a mistake. Here's what a good handbook does:
Establishes expectations: Your server shouldn't have to guess whether she can accept tips or what happens if she's late three times. The handbook tells her.
Ensures consistency: When your manager at location A handles a situation one way and your manager at location B handles it differently, you create legal risk. The handbook provides uniform guidance.
Provides legal protection: When an employee claims they didn't know a policy existed or that rules were applied unfairly, your handbook with their signed acknowledgment serves as evidence.
Communicates culture: Beyond policies, your handbook conveys what your business values and how you treat people.
What to Include: The Core Sections
Your handbook doesn't need to be 100 pages, but it should cover essential topics. Here's a typical structure:
Sample Table of Contents
1. Welcome and Company Overview
- Welcome message from leadership
- Company mission and values
- Brief company history
2. Employment Basics
- At-will employment statement
- Equal opportunity employer statement
- Employee classifications (full-time, part-time, exempt, non-exempt)
- Attendance and punctuality
- Dress code
- Meal and break periods
- Use of company property
- Social media policy
4. Compensation and Benefits
- Pay periods and direct deposit
- Overtime policy
- Employee benefits overview
- Performance reviews
5. Time Off and Leaves
- Paid time off (including Unlimited Paid Time Off)
- Sick leave
- Holidays
- Bereavement leave
- FMLA and other protected leaves
6. Workplace Conduct
- Anti-harassment and discrimination policy
- Drug-free workplace
- Workplace violence prevention
- Conflicts of interest
7. Safety and Security
- Workplace safety procedures
- Accident reporting
- Emergency procedures
8. Technology and Communications
- Email and internet use
- BYOD policy
- Confidentiality and data protection
9. Discipline and Separation
- Progressive discipline process
- Resignation procedures
- Final pay
10. Acknowledgment of Receipt
The specific sections depend on your industry and business needs. A warehouse needs detailed safety protocols. A restaurant needs clear policies on handling customer complaints and tip distribution.
Writing Your Handbook: Tone and Language
Research from the Society for Human Resource Management emphasizes that handbooks should be written in clear, accessible language. You're not writing a legal contract. You're communicating with employees who might be high school graduates working their first job.
Bad: "Employees shall endeavor to maintain punctual adherence to scheduled shift commencement times."
Good: "Show up on time for your scheduled shifts. Being late affects the entire team."
Keep It Conversational But Professional
Your salon's handbook can sound friendly without being unprofessional. "We're excited to have you on the team" is fine. "Hey girl, welcome to the squad!" is not.
Use Examples
Abstract policies confuse people. Concrete examples clarify them.
Abstract: "Employees must maintain appropriate professional appearance."
Better: "Employees must maintain appropriate professional appearance. This means clean uniforms, closed-toe shoes, and hair secured back when working in food preparation areas."
Avoid Absolutes
Words like "always" and "never" box you into corners. "Employees will always receive two weeks' notice before schedule changes" sounds great until an emergency requires a same-day shift change.
Better phrasing: "We strive to provide at least two weeks' notice for schedule changes whenever possible."
Legal Considerations
Required Disclosures
Federal and state laws require certain information in employee handbooks or posted workplace notices:
- EEO statement
- At-will employment disclaimer (where applicable)
- FMLA rights (if you're a covered employer)
- Workers' compensation information
- OSHA safety information
The Department of Labor maintains updated poster requirements you must follow.
What NOT to Include
According to the National Labor Relations Board, certain handbook provisions can violate employee rights:
Don't prohibit discussing wages: Employees have the legal right to discuss their pay with coworkers.
Don't broadly ban social media posts about work: You can prohibit disclosing confidential information, but you can't ban all work-related social media posts.
Don't create implied contracts: Avoid language suggesting guaranteed employment duration or that termination only occurs for specific reasons (unless you intend to create such an agreement).
State-Specific Requirements
Some states require specific handbook provisions. California requires meal and rest break information. New York requires sexual harassment policies. Multi-state employers often need location-specific handbook addendums rather than creating separate handbooks for each location.
If you operate in multiple states, consider a core handbook with state-specific addendums rather than creating separate handbooks for each location.
Formatting Your Handbook
Digital vs. Print
Most businesses now use digital handbooks for several reasons:
Easy updates: When a policy changes, update the digital version instantly rather than reprinting 50 handbooks.
Accessibility: Employees can access the handbook on their phones anytime through platforms like Breakroom, eliminating "I left my handbook at home" excuses.
Tracking: Digital platforms track who has read the handbook and acknowledged specific policies.
Cost: No printing or binding expenses.
That said, some employees prefer print. Consider offering both options, with the digital version marked as the authoritative current version.
Design and Layout
Make your handbook scannable:
Use headers and subheaders: Break content into logical sections with clear headings.
Include a table of contents: With page numbers or hyperlinks in digital versions.
Use bullet points: Lists are easier to read than dense paragraphs.
Add white space: Don't cram text edge to edge. Margins and spacing improve readability.
Consider simple graphics: Icons or images can break up text and highlight important sections.
Your handbook should look professional but not intimidating. A 50-page wall of text discourages reading. A well-organized, visually appealing document encourages engagement.
Distributing Your Handbook
During Onboarding
The handbook should be part of every new hire's first day. Don't just hand it over and move on:
Walk through key sections: Highlight the most important policies during orientation.
Answer questions: Give employees time to ask about anything confusing.
Require acknowledgment: Have employees sign an acknowledgment form confirming they received, read, and understood the handbook.
To Existing Employees
When you first create a handbook or make significant updates, distribute it to your entire team with a communication explaining what's new or changed. Give them a deadline to review it and return signed acknowledgments.
Managing Updates
Policies change. Laws change. Your business evolves. Your handbook needs updates, but you can't reissue the entire handbook every time you make a minor change.
For minor updates: Issue a policy memo or addendum explaining the change. Have employees sign an acknowledgment of the new policy.
For major revisions: Issue a new handbook version annually or biannually. Clearly mark it with a version number and date (e.g., "Employee Handbook v3.0, January 2025").
Best practices recommend annual handbook reviews to ensure policies remain current and compliant.
The Acknowledgment Form
Your handbook is only valuable if employees have actually received and read it. The acknowledgment form serves as proof.
A basic acknowledgment includes:
- Statement that employee received the handbook
- Statement that employee read and understood the handbook
- Statement that employee agrees to comply with policies
- Acknowledgment of at-will employment (where applicable)
- Employee signature and date
- Supervisor or HR signature and date
Store signed acknowledgments in employee files. If you ever need to discipline or terminate an employee for policy violations, that signed acknowledgment proves they knew the rules.
Common Handbook Mistakes
Too long: A 200-page handbook overwhelms employees. Focus on essential policies. Most handbooks should be 30-50 pages.
Too vague: "Employees must be professional" means nothing without definition.
Contradictory policies: When your attendance policy conflicts with your sick leave policy, confusion and legal problems follow.
Outdated information: A handbook referencing laws that changed three years ago undermines your credibility.
No review: Creating a handbook and never updating it is almost worse than having no handbook.
Overly restrictive: Policies that sound good in theory but can't be consistently enforced create liability. "Employees may never use their phones during shifts" sounds firm but is unrealistic and unenforceable in many settings.
The Bottom Line
Your employee handbook is the foundation of your employment relationship. It tells employees what you expect, what they can expect from you, and how your business operates. A well-written, clearly formatted, easily accessible handbook prevents problems before they start.
You don't need perfection. You need clarity, consistency, and communication. Start with the essential policies, write them in plain language, distribute them effectively, and update them regularly. That's a handbook that actually works.
