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  5. What should a small business include in an employee handbook?

What should a small business include in an employee handbook?

On Behalf of Jacobsen Law Firm, P.A. | Aug 28, 2026 | Business - Employment

As your business grows, so does your team. A larger team can bring more questions about workplace rules, employee conduct, time off and other day-to-day issues. Written policies give everyone the same expectations and give you a central place to address common questions as your business expands.

You do not need to cover every possible situation or fill your handbook with legal jargon. Here are the key areas to consider when putting your handbook together.

Workplace rules and expectations

Start with the basic rules employees need to follow at work. These can include:

  • Work schedules, attendance and punctuality
  • Dress and workplace conduct
  • Use of company property
  • Employee responsibilities and general workplace standards

Keep these rules specific enough to guide employees while allowing room for reasonable management decisions.

Pay, timekeeping and leave policies

Employees should know how you handle pay, timekeeping and leave from the outset. Depending on your business, this may cover pay schedules, recording work hours, overtime, vacation or PTO, holidays and other types of leave.

Minnesota employers must also provide earned sick and safe time to eligible employees. If you provide an employee handbook, Minnesota law requires you to include the required ESST notice in it.

Anti-harassment and discrimination policies

Address unlawful discrimination and harassment by explaining both your workplace standards and how employees can report concerns.

Your policies should reflect applicable federal requirements enforced by the U.S. Equal Employment Opportunity Commission (EEOC), as well as Minnesota requirements. They should also explain how employees can raise complaints and make clear that you will not tolerate retaliation against someone who makes a good-faith complaint.

Confidentiality and technology policies

Set reasonable boundaries around confidential business information and workplace technology. Consider addressing:

  • Company computers, email and internet use
  • Confidential business and customer information
  • Social media
  • Protection of company records

Tailor these rules to the technology and information your employees actually use.

Performance and disciplinary policies

Employees should understand what you expect from them and how you may respond when those expectations are not met. If you use progressive discipline, describe the general process without promising that you will follow the same steps in every situation.

Handbook disclaimers and acknowledgments

Your handbook should state that it does not create an employment contract and should include appropriate at-will employment language if applicable. You should also have employees sign an acknowledgment confirming that they received and reviewed the handbook.

Build a handbook that works for your business

A handbook works best when it reflects both current law and your actual workplace practices. Reviewing your policies with an attorney can help you identify outdated language, conflicting provisions or requirements you may have overlooked before they create problems.

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