Compliance guideRead at source, 28 September 2026
Employee Handbook Template: Sample Policies and What Small Businesses Must Include
This employee handbook template gives you a section-by-section outline with sample policy language you can adapt, plus an acknowledgment form. No federal law requires a handbook, but several laws require written policies that belong in one, and the thresholds decide which apply to you: federal anti-discrimination laws reach employers with 15 or more employees (age discrimination at 20), and the FMLA notice only applies at 50 or more.
What an employee handbook for a small business must include
Start with headcount, because federal obligations switch on at set sizes. The EEOC’s small business guidance sets them out: equal pay for equal work applies from one employee; discrimination based on “race, color, religion, sex (including pregnancy, sexual orientation, or transgender status), national origin, disability and genetic information” is covered from 15 employees; “age (40 or older)” is added at 20.
| Employees | What switches on | Handbook section it affects |
|---|---|---|
| 1 or more | Equal pay for equal work (EEOC) | EEO, pay |
| 15 or more | Federal protection against discrimination on race, color, religion, sex, national origin, disability and genetic information (EEOC) | EEO, anti-harassment, accommodation |
| 20 or more | Age discrimination, 40 or older (EEOC) | EEO |
| 50 or more, each working day in 20 or more workweeks this year or last | FMLA coverage (29 CFR 825.104); if anyone is eligible, the FMLA notice must go in the handbook (825.300(a)(3)) | Leave of absence |
Below 15 employees, federal EEO law may not reach you, but state law can. New York Labor Law 201-g says “Every employer shall adopt” a sexual harassment prevention policy meeting the state model, with no size threshold, and must give it to employees in writing at hire. That is why the EEO and harassment sections below belong in every handbook, sized to your state. Beyond the thresholds, five things belong in any small business handbook:
- An at-will and not-a-contract statement, where your state allows at-will employment.
- EEO and anti-harassment policies with a complaint route that does not run only through the employee’s own supervisor.
- Pay, hours and overtime rules that match your state’s pay frequency, break and overtime law.
- Attendance and call-off rules, the policy frontline employees actually get disciplined under.
- A signed acknowledgment, which is how you prove each person received it.
The at-will statement, and the one state where it works differently
Most handbooks say employment is at will and that the handbook is not a contract, because courts in some states have treated handbook promises as enforceable. Montana is the clearest exception: under Montana Code 39-2-904 a discharge after the probationary period is wrongful if it “was not for good cause,” or if “the employer materially violated an express provision of its own written personnel policy.” In Montana, your handbook’s discipline section is enforceable against you. Write only what you will follow. Our guide to the new hire probationary period covers how that period is set.
Employee handbook template: sample policies
Replace “the Company” with your business name, delete what does not apply, and check each section flagged state law varies against the state pages linked. Keep sentences short; many of your readers will open this on a phone.
Sample handbook, part 1: the foundation
1. Welcome and purpose
This handbook explains how we work, what we expect of you and what you can expect of us. It replaces any earlier handbook. The Company may change, add or remove policies at any time and will tell you in writing when it does. If a policy here conflicts with the law where you work, the law controls.
2. Employment at will (state law varies)
Employment with the Company is at will. You or the Company may end it at any time, with or without cause or notice. Nothing in this handbook is a contract of employment or a promise of employment for any period. Only the owner or president may change this in a signed written agreement.
3. Equal employment opportunity
The Company does not discriminate in hiring, pay, promotion, discipline, termination or any other term of employment because of race, color, religion, sex (including pregnancy, sexual orientation and gender identity), national origin, age, disability, genetic information, veteran status or any other status protected by federal, state or local law.
4. Anti-harassment and how to report it (state law varies)
Harassment based on any protected status, including sexual harassment, is prohibited, whether by a co-worker, supervisor, customer or vendor. Examples include unwelcome sexual advances, slurs, jokes, and offensive images or messages. Report it to your supervisor, to the Human Resources contact named at the end of this handbook, or to any manager; you do not have to report to someone involved. We will investigate promptly and take corrective action. Retaliation against anyone who reports or takes part in an investigation is prohibited.
5. Reasonable accommodation
If you need an accommodation for a disability, pregnancy or a religious practice, tell your supervisor or the Human Resources contact. We will work with you to find a reasonable accommodation.
Sample handbook, part 2: pay, time and attendance
6. Employment classifications
Full-time employees are regularly scheduled for ______ or more hours a week; part-time employees fewer. Non-exempt employees are paid overtime as the law requires; exempt employees are not. Your offer letter states your classification.
7. Timekeeping, hours and breaks (state law varies)
Non-exempt employees must record all time worked, accurately, using the Company’s timekeeping system. Do not work off the clock, and do not record time for anyone else. Meal and rest breaks are provided as the law where you work requires; your supervisor will give you the schedule.
8. Pay and paydays (state law varies)
You are paid ______ (weekly, every two weeks, twice a month). If a payday falls on a holiday, you are paid on ______. Report any pay error to your supervisor right away; we will correct it promptly.
9. Overtime (state law varies)
Non-exempt employees are paid overtime as federal and state law requires. Overtime must be approved in advance by your supervisor. Working unapproved overtime may lead to discipline, but you will always be paid for all hours worked.
10. Attendance and calling off
If you will be late or absent, call ______ at least ______ hours before your shift starts. A text to a co-worker is not notice. Missing a shift without calling is a no-call, no-show; ______ consecutive no-call, no-shows are treated as a voluntary resignation.
11. Paid time off and sick leave (state law varies)
You earn ______ hours of paid time off for every ______ hours worked, up to ______ hours. Request planned time off ______ days ahead. Where a state or local paid sick leave law gives you more, that law applies. Unused time off is paid at separation only where the law or this policy requires it.
Sample handbook, part 3: conduct, safety and leaving
12. Leave of absence
The Company grants leave as required by federal, state and local law, including military leave. Employers covered by the FMLA: insert the Department of Labor’s general FMLA notice here, or text containing at least the same information.
13. Drug and alcohol policy (state law varies)
Working under the influence of alcohol, illegal drugs or cannabis, or possessing them on Company property, is prohibited. Positions listed in your offer letter require a drug screen before starting work. Tell a supervisor if a prescribed medication may affect your safety at work; you do not need to name it.
14. Safety and injuries
Follow all safety rules and use the protective equipment provided. Report every injury, however small, to your supervisor before the end of your shift. You will not be punished for reporting an injury or a safety concern.
15. Workplace conduct
Treat co-workers, customers and property with respect. Violence, threats, theft, falsifying records and working unsafely may lead to discipline up to and including termination. The Company decides the discipline that fits each situation.
16. Phones, social media and confidential information
Personal phone use is limited to breaks unless your supervisor approves. Do not share customer data or trade secrets. Nothing in this handbook limits your right to discuss your pay, benefits or working conditions with co-workers or others.
17. Leaving the Company (state law varies)
Please give ______ weeks’ notice if you resign. Return all Company property on your last day. Your final pay will be provided on the schedule the law where you work requires.
Employee acknowledgment form
I have received the Company’s employee handbook dated ______. I understand it is my responsibility to read it and follow its policies, and to ask my supervisor or the Human Resources contact about anything I do not understand. I understand the Company may change its policies at any time. I understand that my employment is at will and that this handbook is not a contract of employment.
Employee name: ______ Signature: ______ Date: ______
Keep the signed form, or an electronic record, in each personnel file, and collect a new one whenever you issue a new version. Several states require an individual copy of specific policies at hire or yearly; the requirements by state table lists them.
Where the template needs state-specific work
Every section marked state law varies has a rule behind it. The ones frontline employers get wrong most often, with the page that covers each:
| Section | What varies | Where to check |
|---|---|---|
| Anti-harassment | Several states require a written policy with set elements and delivery at hire | Handbook requirements by state |
| Pay and paydays | Minimum pay frequency | Pay frequency laws |
| Breaks | Whether meal and rest breaks are required | Meal break laws |
| Overtime | Daily overtime in some states | Overtime laws |
| Paid time off | Payout of unused PTO at separation | PTO payout laws |
| Drug and alcohol | Limits on cannabis testing | Drug testing laws and pre-employment drug screening |
| Leaving | Final paycheck deadlines | Final paycheck laws |
Three rules for writing policies that hold up
Do not write rules that chill talk about pay
Section 7 of the National Labor Relations Act gives employees the right “to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection.” Broad bans on discussing pay, criticizing the company online, or sharing “confidential” information can cut across it. That is why section 16 says the handbook does not limit those rights. Have counsel look at any confidentiality or social media rule you add.
Only promise what you will do every time
A progressive discipline ladder (verbal, written, final, termination) reads well and binds you in practice. The template says the Company decides the discipline that fits; if you publish a ladder, follow it.
Match the handbook to the job ad and the offer
If the ad says weekly pay and the handbook says biweekly, the new hire believes the ad. Keep your EEO statement, pay schedule, shift rules and screening conditions identical across ad, offer letter and handbook.
When and how to hand it over
Deliver the handbook with the first-day paperwork on the new hire forms checklist, collect the acknowledgment, and walk through the three policies that matter in week one during new hire orientation: pay, attendance and call-offs, and who to go to with a problem. Federal notices still go on the wall; see labor law posters by state. Review the whole document at least once a year and date every version.
If you are writing your first handbook because you are about to hire your first few people, how to hire employees as a small business covers the steps around it.
Frequently asked questions
What should an employee handbook template include?
At minimum: a welcome and purpose statement, an at-will and not-a-contract statement where state law allows, equal employment opportunity and anti-harassment policies with a complaint route, classifications, timekeeping, pay and overtime, attendance and call-offs, time off, leave, drug and alcohol rules, safety, conduct, separation, and a signed acknowledgment form.
Is an employee handbook required by law?
No federal law requires a private employer to have a handbook. Several laws require written policies or notices that belong in one. If you are covered by the FMLA and have any eligible employees, 29 CFR 825.300(a)(3) requires the FMLA general notice to be included in the handbook if you have one, or given to each new hire.
What does an employee handbook for a small business need?
An at-will statement where allowed, EEO and anti-harassment policies, pay and hours rules that match your state, attendance rules and an acknowledgment form. Federal thresholds decide the rest: EEOC discrimination coverage for most protected categories starts at 15 employees, age at 20, and FMLA at 50. State law can apply from the first employee.
Does a small business with under 15 employees need an anti-harassment policy?
Federal discrimination law may not reach you below 15 employees, apart from equal pay, which applies from one employee. State law can reach smaller employers: New York Labor Law 201-g requires every employer to adopt a sexual harassment prevention policy and give it to employees in writing at hire. A short policy with a clear reporting route is cheap insurance at any size.
When does the FMLA apply to a small business?
When you employ 50 or more employees for each working day during each of 20 or more calendar workweeks in the current or preceding calendar year (29 CFR 825.104). An individual is eligible after 12 months of employment and 1,250 hours in the prior 12 months, at a worksite with 50 or more employees within 75 miles (825.110).
Should a handbook say employment is at will?
In most states, yes, together with a statement that the handbook is not a contract, because courts in some states have treated handbook language as an enforceable promise. Montana is the main exception: under Montana Code 39-2-904 a discharge after the probationary period is wrongful without good cause, or if you materially violated your own written personnel policy.
Do employees have to sign the handbook acknowledgment?
No federal law requires a signature, but the acknowledgment is how you prove each employee received the handbook, and several states require individual delivery of certain policies at hire or yearly. Collect a signed or electronic acknowledgment at hire and again whenever you issue a new version.
Can a handbook ban employees from discussing pay?
Be careful. Section 7 of the National Labor Relations Act protects most non-supervisory employees’ right to engage in concerted activities for mutual aid or protection, which includes discussing pay and working conditions. Broad bans on those discussions, or on criticizing the employer, can conflict with it. The template includes a sentence preserving those rights.
How often should an employee handbook be updated?
Review it at least once a year and whenever a state where you have employees changes a rule you cite, such as paid sick leave or pay frequency. Date each version, keep the old ones, and collect a new acknowledgment when you reissue it.
A good handbook needs new hires to hand it to.
We run Facebook and Instagram job ads with a short mobile application for hourly roles, so your first-day paperwork has people to go to. See what an applicant costs in your roles.
Book a DemoSources: 29 CFR 825.104, 825.110 and 825.300 (eCFR, current to 25 September 2026); U.S. Equal Employment Opportunity Commission, Small Business Requirements; 29 U.S.C. 157; New York Labor Law 201-g; Montana Code Annotated 39-2-904 (2025). Sample policy language is a drafting starting point written by Boostpoint, not a legal form; have employment counsel review it for your states. Read at source 28 September 2026.