Retail Employee Handbook

Retail can be a tough business. Stores of all kinds need policies like these in their employee handbook to ensure consistency, clarity, and professionalism across all operations. Clear guidelines and expectations, help teams perform their duties effectively and efficiently. By establishing a standard for the work, companies can minimize risks, and enhance customer satisfaction. Well-defined policies help foster a positive culture, support employee development, and promote a safe and customer-focused retail experience.

A great Customer Service Policy ensures that all employees provide consistent, high-quality service to every customer, enhancing the shopping experience and fostering customer loyalty. It establishes clear expectations for handling customer inquiries, complaints, and interactions, and helps set the standard for keeping a positive and professional demeanor at all times. This policy emphasizes the importance of empathy, patience, and clear communication in building customer relationships.

Here is an example of a Customer Service Policy:

Providing excellent customer service is essential for building and maintaining our loyal customer base. Every interaction with a customer should reflect our commitment to satisfaction and professionalism. This policy outlines the expectations for customer interactions and the procedures for addressing and resolving complaints.

• Greeting Customers: Employees must greet customers warmly upon entry, acknowledging their presence with a smile and a friendly greeting.
• Engagement: Engage with customers throughout their experience by checking in periodically, offering product recommendations, and being available to answer any questions. Show genuine interest in helping customers find what they need.

• Listening and Empathizing: How a customer feels when communicating a complaint has a substantial impact on the likely outcome of the interaction. When a customer has a complaint, employees must listen attentively and empathize with their concerns. Use active listening techniques, such as nodding and repeating back what the customer has said to show understanding.
• Taking Action: Follow the established procedures to resolve customer complaints promptly. This may include offering exchanges, refunds, or other solutions that address the customer's concerns. Always seek to resolve issues in a way that satisfies the customer while adhering to store policies.
• Escalation: If a complaint cannot be resolved immediately, escalate the issue to a supervisor or manager. Document the details of the complaint and the steps taken to address it, ensuring that the customer is informed of the next steps and expected resolution timeframe.

Creating a Positive Environment:

• Ambiance: Maintain a clean, organized, and inviting store environment. Ensure that displays are attractive, products are well-stocked, and the store layout is easy to navigate.
• Professionalism: Employees must maintain a professional demeanor at all times. This includes dressing appropriately, using positive body language, and refraining from negative behaviors such as gossiping or using personal phones while on the sales floor.

Dealing with Difficult Customers:

• Staying Calm: Remain calm and composed when dealing with difficult or upset customers. Listen to their concerns without interrupting and acknowledge their feelings. . continued

Handling payments, and managing customer transactions efficiently helps drive sales. Employees must ensure accuracy and prevent errors during the checkout process. This policy includes guidelines for upselling, cross-selling, and managing special promotions, contributing to the store’s overall sales performance.

Here is an example of a Sales and Transaction Policy:

Accurate and efficient handling of sales transactions is a key driver of profitability. This policy outlines the procedures and best practices for conducting sales and handling transactions.

• Product Knowledge: Employees must have a thorough understanding of the products they are selling, including features, benefits, and differences from competing products. This knowledge helps employees make informed recommendations that meet customer needs and preferences.
• Upselling and Cross-Selling: Employees should use upselling and cross-selling techniques to enhance customer purchases and increase sales. Upselling involves suggesting a higher-end product, while cross-selling recommends complementary items. For example, if a customer is purchasing an item, suggest another item or product that pairs well with it.
• Customer Engagement: Engage customers in meaningful conversations to understand their needs and preferences. Ask open-ended questions to gather information and provide personalized recommendations.

• Point-of-Sale (POS) System: Employees must be proficient in using the store’s POS system to process transactions efficiently and accurately. This includes scanning items, entering prices, applying discounts, and processing payments. Training on the POS system will be provided during onboarding and as needed.
• Cash Handling: Follow proper cash handling procedures to prevent discrepancies. This includes counting cash accurately at the beginning and end of each shift, maintaining a balanced cash drawer, and securely storing large amounts of cash. Any cash discrepancies must be reported to a supervisor immediately.
• Applying Discounts: Employees must understand and accurately apply store discounts, coupons, and promotional offers. This includes verifying the validity of discounts and ensuring they are applied correctly in the POS system. Employees should be familiar with the terms and conditions of each discount or promotion. . continued

The procedures for handling customer returns and exchanges should create a fair and consistent approach for all scenarios. The goal is to provide clear instructions on eligibility, documentation, and processing of returns. This policy helps build trust with customers by demonstrating a commitment to resolving issues and maintaining satisfaction.

Here is an example of a Returns and Refunds Policy:

The company has procedures for processing returns, exchanges, and refunds, ensuring a consistent and customer-friendly approach that supports the company’s commitment to customer satisfaction. Our goal is to provide a hassle-free return and refund process for our customers.

• Eligibility: Products must be returned within 30 days of purchase with a valid receipt or proof of purchase. Items must be in their original condition and packaging.
• Non-Returnable Items: Certain items, such as clearance products, personalized items, and perishable goods, are not eligible for return. A complete list of non-returnable items will be provided.
• Process for Returns: Customers should bring the item and receipt to the store. An associate will inspect the item and process the return or exchange.
• Refunds: Refunds will be issued to the original payment method. Processing time may vary depending on the payment method and financial institution.
• Exchanges: Exchanges can be made for items of equal or lesser value. Any difference in price will be refunded or charged to the customer accordingly.
• Handling Dissatisfied Customers: Listen to the customer's concerns, apologize for any inconvenience, and follow the returns policy to resolve the issue. If necessary, escalate the issue to a manager for further assistance.

All returns and refunds must be logged in the POS system for inventory and accounting purposes. Employees must ensure accurate and timely recording of all transactions.

The Health and Safety Policy establishes protocols for maintaining a safe and secure environment for both employees and customers. It includes guidelines for proper handling of equipment, emergency procedures, and preventive measures to avoid accidents and injuries. This policy ensures that employees are aware of their responsibilities in creating a safe workplace.

Here is an example of a Retail Health and Safety Policy :

Creating a safe and healthy work environment for all employees and customers is critical for our success. Please read and carefully observe the following procedures and precautions to prevent accidents and injuries. While it is not possible to list all possibilities for dangerous activities, this list provides a starting point for helpful examples.

• Follow all posted safety guidelines and instructions.
• Keep work areas clean and free of hazards.
• Report any unsafe conditions or equipment immediately to a supervisor.

• Use proper lifting techniques: bend at the knees, keep the back straight, and avoid twisting.
• Ask for assistance when lifting heavy or awkward items.
• Use equipment like carts and dollies to move heavy objects.

• Only use equipment and tools that you have been trained to operate.
• Inspect equipment before use to ensure it is in good working condition.
• Report any malfunctioning equipment to a supervisor immediately.

• Familiarize yourself with emergency exits and evacuation routes.
• Know the location of fire extinguishers, first aid kits, and emergency contact numbers.
• In the event of an emergency, follow the established evacuation procedures and assist customers to safety.

• Wear appropriate PPE, such as gloves, masks, and safety shoes, as required by your role.

The Appearance and Dress Code Policy sets standards for employee attire. It provides guidelines on acceptable clothing, hygiene, and accessories, helping employees present themselves appropriately.

Here is an example of a Appearance and Dress Code Policy:

A professional appearance helps to create a positive impression and reinforces the store’s brand image. This policy outlines the dress code standards and personal grooming expectations for employees.

• Uniform Requirements: Employees must wear the designated uniform or adhere to the dress code standards at all times. Clothing should be clean, pressed, and well-maintained.
• Personal Appearance: Maintain high standards of personal grooming, including neat hair, minimal jewelry, and appropriate makeup. Personal hygiene is essential to ensure a pleasant shopping experience for customers.

Effective inventory management is a key driver for profitability. This policy outlines procedures for tracking, ordering, and maintaining stock levels, ensuring that products are available and organized. It helps employees understand the importance of accurate inventory counts, proper storage, and timely restocking. Careful application of this policy reduces the risk of stockouts and overstocking, contributing to efficient store operations.

Here is an example of an Inventory Management Policy:

This policy covers procedures for handling stock, conducting inventory counts, and managing returns.

• Stock Handling: Receive, unpack, and stock merchandise accurately and promptly. Ensure products are displayed neatly and rotated regularly to maintain freshness.
• Storage: Stock should be stored in designated areas, organized, and labeled clearly to ensure easy access and prevent damage or loss.
• Reporting Issues: If variances exist between the inventory management system and a physical inventory count, the variance should be documented and reconciled.
• Product Returns: Handle damaged or returned merchandise according to store policy. Ensure that returned items are processed and restocked or disposed of appropriately.

This policy provides comprehensive guidelines for daily store activities, including opening and closing procedures, cash handling, and housekeeping. It ensures that all employees understand their roles and responsibilities in maintaining smooth and efficient store operations.

Here is an example of a Store Operations Policy:

Smooth store operations are essential for providing a positive customer experience and maintaining efficiency. This policy outlines procedures for opening and closing the store, cleaning, maintenance, and safety protocols.

• Opening and Closing Procedures: Follow the established steps for opening and closing the store, including cash handling and securing the premises. Ensure all areas are ready for the next business day.
• Cleaning and Maintenance: Keep the store clean and well-organized throughout the day. Regularly check for any maintenance issues and report them to the appropriate personnel.
• Safety Protocols: Adhere to safety protocols to prevent accidents and ensure a safe shopping environment. This includes maintaining clear walkways and properly handling equipment and hazardous materials.

An Employee Discounts and Benefits Policy outlines the perks and discounts available to employees, promoting job satisfaction and loyalty. It provides information on eligibility, usage, and any restrictions and helps attract and retain talent.

Here is an example of a Employee Discounts and Benefits Policy:

Offering employee discounts and benefits is a way to reward staff and enhance job satisfaction. This policy provides guidelines for the use of employee discounts and other benefits.

• Discount Eligibility: Employees are eligible for store discounts as outlined in the employee benefits program. Discounts are for personal use only and should not be extended to friends or family.
• Benefit Programs: Additional benefits, such as free products, services, or performance bonuses, are available to eligible employees. Details of these programs will be provided during onboarding.
• Usage Guidelines: Misuse of employee discounts or benefits may result in disciplinary action. Employees must follow the proper procedures when utilizing their discounts or benefits.

The Security and Loss Prevention Policy establishes measures to protect the store’s assets and reduce the risk of theft and fraud. It includes guidelines for monitoring inventory, securing the premises and reporting suspicious activities. This policy helps employees understand their role in safeguarding the store.

Here is an example of a Security and Loss Prevention Policy:

Preventing theft and fraud is important to the store’s financial health and security. This policy outlines the strategies for loss prevention, incident reporting, and employee conduct related to security. The best way to deter losses is through employee vigilance, engaged customer service, and product security.

Employees must remain vigilant and monitor for suspicious behavior and potential theft. This includes being attentive to customers, maintaining a presence in all areas of the store, and being aware of common theft methods. High-value items should be secured using locked displays, have security tags, or be protected with other measures.

• Immediate Reporting: Any suspected theft, fraud, or security breaches must be reported immediately to a supervisor or the designated loss prevention officer. Prompt reporting allows for quick action and investigation.
• Documentation: Document all incidents in detail, including descriptions of suspects, times, locations, and any other relevant information. Use incident report forms to ensure consistent and thorough documentation.

• Customer Behavior Monitoring: Be aware of and monitor behaviors commonly associated with shoplifting, such as avoiding eye contact, lingering in areas without purchasing, and carrying large bags or wearing oversized clothing.
• Confrontation Protocols: If shoplifting is suspected, follow the protocol for addressing the situation. This may include notifying a supervisor, using code words to alert other employees, and avoiding direct confrontation unless trained and authorized to do so.

Retail Company Handbook Samples

Goodwill Retail Handbook

Other Handbook Content

What else should be included in your handbook?

In addition to industry-specific policies, your handbook should include:

• Introduction and core policies
• Time away from work and other benefits
• On-the-job practices and policies
• Standards of conduct
• State and local policies (important!)
• Handbook acknowledgments

1. Introduction and core policies

This is where you set the stage for the employee relationship. It describes a company that is committed to great work, fairness, and a mission.

• Welcome and mission statements
• Equal employment opportunity statement
• Employment-at-will
• Handbook disclaimer statement
• Employment categories
• Company mission statement
• Introductory Period

Welcome statement

Start with a friendly welcome statement that expresses appreciation for employees and emphasizes the importance of their contributions to the company.

Here's an example of a welcome statement:

On behalf of [Company name], let us extend a warm and sincere welcome. We hope you will enjoy your work here and we are glad to have you with us. We understand that it is our employees who provide the services that our customers rely upon. We believe that each employee contributes directly to [Company name’s] growth and success.

We hope that your experience here will be challenging, enjoyable, and rewarding. We are excited to have you as part of our team!

Equal employment opportunity statement

An Equal Employment Opportunity (EEO) statement is a declaration made by an employer that outlines its commitment to providing equal employment opportunities to all job applicants and employees, regardless of their race, color, religion, sex, national origin, age, disability, or any other protected characteristic.

The EEO statement typically appears in an employer's job postings, employee handbook, and other employment-related documents. The statement should be clear, concise and should communicate the employer's commitment to fair employment practices.

Here’s an example of an EEO statement:

[Company name] is an equal opportunity employer and does not discriminate against employees or applicants on the basis of an individual’s race, creed, gender, sex, color, religion, national origin, age, disability, marital status, gender identity, sexual orientation, veteran status, or any other status protected by applicable law. This policy applies to all terms, conditions, and privileges of employment, including but not limited to recruitment, hiring, placement, compensation, promotion, discipline, and termination.

[Company name] is committed to complying with all applicable provisions of the Americans with Disabilities Act (ADA). It is our policy not to discriminate against any qualified employee or applicant with regard to any terms or conditions of employment because of such an individual's disability. Consistent with this policy of non-discrimination, the company will evaluate requests for accommodation via the interactive process and will provide a reasonable accommodation to a qualified individual with a disability, as defined in the ADA, who has made the company aware of their disability, provided such accommodation does not constitute an undue hardship to the company. The company reserves the right to propose an alternative accommodation, so long as such accommodation is equally effective in accommodating the disability.

Employment-at-will statement

Employment at will means that either the employer or the employee can terminate the employment relationship at any time, for any reason or no reason at all, with or without notice.

This means that an employer can terminate an employee's employment for any reason that is not prohibited by law, such as discrimination based on protected characteristics like race, gender, or religion. Similarly, an employee can leave their job for any reason or no reason at all, without providing any notice to the employer.

There are some important caveats where at-will employment doesn’t apply. Union agreements, employment contracts, and some state laws create some exceptions. To stay out of hot water, it's important for both employers and employees to understand the employment-at-will relationship and how it affects their rights and responsibilities in the workplace. Here’s an example of an employment-at-will policy:

Where applicable by law, employment with [Company name] may be terminated for any reason, with or without cause or notice, at any time, by you or the company. Nothing in this Employee Handbook or in any oral or written statement shall limit the right to terminate employment-at-will unless otherwise dictated by state law. Only the President of the company shall have any authority to enter into an employment agreement with any employee providing for employment other than at-will and any such agreement must be in writing.

This policy of at-will employment is the sole and entire agreement between you and [Company name] as to the duration of employment and the circumstances under which your employment may be terminated.

With the exception of employment-at-will, the terms and conditions of employment with [Company name] may be modified at the sole discretion of the company, with or without cause or notice, at any time. No implied contract concerning any employment-related decision or term or condition of employment can be established by any other statement, conduct, policy, or practice.

Handbook Disclaimer Statement

An employee handbook disclaimer is a statement that appears in an employee handbook and clarifies that the handbook is not a contract of employment and does not create any contractual rights or obligations between the employer and the employee. The purpose of the disclaimer is to protect the employer from potential legal claims and to ensure that the handbook is not interpreted as a binding agreement.

Usually, an employee handbook disclaimer will state that the policies and procedures contained within it may be modified, revised, or eliminated at any time, without notice. The disclaimer may also indicate that the handbook does not alter the at-will nature of the employment relationship and that employment can be terminated by either the employer or the employee at any time, with or without cause.

Here’s an example of a Handbook Disclaimer Statement (sometimes titled as “About this Handbook”):

This handbook was developed to describe the policies, programs, and benefits available to eligible employees. It is important to read, understand, and comply with all provisions of the handbook.

This handbook should not be construed as an employment agreement or contract and does not guarantee any contractual rights. It’s also important to remember that this handbook provides general guidelines and that other information, such as benefit plans, will be described in other documents.

This handbook states only general company guidelines. [Company name] may, at any time, in its sole discretion, modify or vary from anything stated in this handbook, with or without notice, except for the rights of the parties to terminate employment-at-will and to the degree that such variance is compliant with all applicable federal and state laws.

This handbook supersedes and replaces any and all personnel policies and manuals previously distributed or made available to employees.

Add a great mission statement

A good mission statement should communicate an organization's purpose, values, and goals. It should be brief enough to be easily understood and remembered, yet comprehensive enough to convey the organization's main objectives.

Here are some elements that a good mission statement can include:

• Purpose: The statement should define the organization's reason for existing, its core business, and what the company is trying to do in the world.
• Values: The statement should express the values and principles it believes in.
• Target audience: The statement should identify the primary audience that the company serves.
• Differentiation: This is optional but can be helpful to clarify your unique value. Explain what sets the organization apart from its competitors.

Here is an example:

This mission statement reflects Patagonia's commitment to creating high-quality outdoor gear while minimizing its environmental impact. It emphasizes the company's core values of sustainability, social responsibility, and innovation, and its goal of using its business to make a positive difference in the world.

Patagonia: "Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis."

2. Time away from work and other benefits policies

It's important for your employee handbook to clearly and accurately describe the employee benefits that are available to employees. Equally important is explaining any eligibility requirements, and the processes to use them. Keep in mind some leave is optional (think paid holidays) and some leave is mandated by federal or state laws (think FMLA).

• Benefits overview
• Paid holidays policy
• Jury duty, voting leave, military leave
• Vacation benefits
• Health insurance
• Sick leave policy
• Family and medical leave (FMLA)

Benefits Overview Policy

Companies need to give themselves room to make changes to their benefits policies over time. It's also important to state explicitly that not all benefits are fully described in the employee handbook (this is particularly true for health insurance, retirement plans, and other complex benefits packages). The Benefits Overview is a great place to state this.

This handbook contains descriptions of some of our current employee benefits. Many of the company's benefit plans are described in more formal plan documents available from the Human Resources Manager. In the event of any inconsistencies between this handbook or any other oral or written description of benefits and a formal plan document, the formal plan document will govern.

The information presented here is intended to serve only as an overview. The details of specific benefit plans are available from the Human Resources Manager. Although [Company name] plans to maintain these employee benefits, it reserves the right to modify, amend or terminate these benefits at any time and for any reason.

Paid Holidays Policy

If your company provides paid time off for holidays, you should list them in the handbook. This clarifies which days are or are not offered as paid holidays. Here's an example of a paid holidays policy:

[Company name] observes the following holidays: New Year's Day, Martin Luther King Day, Memorial Day, Easter, Juneteenth, Independence Day (4th of July), Labor Day, Thanksgiving Day, and Christmas Day Holidays are observed on a paid basis for all eligible employees. Full-time employees are eligible for paid holiday benefits.

Jury Duty Policy

There are many states and cities that have specific rules about jury duty, including how the summoned employee should be compensated (if at all), and for how long. The best way to handle this is to refer to our state-by-state guide.

Health Insurance Policy

If your company offers paid health insurance, you'll want to provide an overview of how enrollment works. Note that there aren't typically a lot of details about health insurance coverage provided in the employee handbook. These details change frequently and it's better to refer employees to the policy documents.

[COMPANY NAME] makes group health benefits available to eligible full-time employees and their family members. Upon becoming eligible to participate in these plans, you will receive additional information about plan benefits and enrollment. If you have questions about our insurance programs, please contact the Human Resources Manager. COBRA Continuation of Health Benefits: Under the federal Consolidated Omnibus Budget Reconciliation Act (COBRA), a qualified employee who terminates employment (for reasons other than gross misconduct on the employee's part) or who loses health and dental coverage due to a reduction in work hours may temporarily continue group health and dental coverage for themselves, their spouse, and any covered dependent children at the full premium rate plus administrative fees. That eligibility normally extends for a period of eighteen (18) months from the qualifying date. For more information regarding COBRA health insurance benefits, see the Human Resources Manager.

Sick Leave Policy

There is a trend of employers offering a paid time off (PTO) policy over a sick leave policy. The primary distinction is that PTO policies typically don't specify how the leave should be used. We've included a short sick leave policy below that you can adapt, however, be aware that many states and cities require paid sick leave policies. Please refer to our state-by-state guide.

Situations may arise where an employee needs to take time off to address medical or other health concerns. The company requests that employees provide notification to their supervisor as soon as practicable when taking time off. Sick days are granted on a paid basis to regular employees and may be evaluated for leave eligibility. Additional state-specific policies may apply.

Voting Leave Policy

Similar to jury duty, many states have a voting leave policy. Some states require this time to be paid, but most don't. You can refer to our state-by-state guide.

[Company name] understands that it is the obligation of all U.S. citizens to serve on a jury when summoned to do so. All employees will be allowed time off to perform such civic service as required by law.

It is the policy of the company to comply with all federal and state rules and regulations regarding jury service. Employees who are selected for jury duty must provide a copy of their jury summons to their supervisor.

Family and Medical Leave Act Policy (FMLA)

The Family and Medical Leave Act (FMLA) is a federal law in the United States that allows eligible employees to take up to 12 weeks of unpaid leave per year for certain medical and family reasons. The law applies to employers with 50 or more employees and requires them to provide job protection and continued health insurance coverage for employees who take FMLA leave. Eligible employees can take FMLA leave for reasons such as the birth or adoption of a child, caring for a family member with a serious health condition, or their own serious health condition. The FMLA is designed to help employees balance their work and family responsibilities while protecting their job security and health insurance coverage.

Note that some states have their own FMLA laws, which differ from this federal FMLA policy.

The company offers leave consistent with the requirements of the federal Family and Medical Leave Act (FMLA). Under the FMLA, an employee may be eligible for an unpaid family and medical leave of absence under certain circumstances, if the employee works within a seventy-five (75) mile radius of fifty (50) or more company employees.

Under the federal FMLA, a person who has worked as an employee of this company for at least 1,250 hours in the previous twelve months is eligible for FMLA leave. Up to twelve weeks of unpaid leave per year are available for the following reasons:

• The birth of a child and care for the newborn child;
• Placement of a child into adoptive or foster care with the employee;
• Care for a spouse, child, or parent who has a serious health condition; or
• Care for the employee’s own serious health condition.
• To care for a spouse, son, daughter, parent, or next of kin (defined as the nearest blood relative) who is a “covered servicemember” and who has incurred an injury or illness in the line of duty while on active duty in the Armed Forces provided that such injury or illness may render the family member medically unfit to perform duties of member’s office, grade, rank or rating.

A military caregiver is eligible to take a total of 26 weeks of leave.

If the need for leave is foreseeable, employees should notify a supervisor 30 days prior to taking FMLA leave. If the need for FMLA leave arises unexpectedly, employees should notify a supervisor as soon as practicable, giving as much notice to the company as possible.

Employees may be required to provide: medical certifications supporting the need for leave if the leave is due to a serious health condition of the employee or the employee’s family member; periodic recertification of the serious health condition; and periodic reports during the leave regarding the employee’s status and intent to return to work. Employees must return to work immediately after the serious health condition ceases, and employees who have taken leave because of their own serious health condition may be asked to submit a fitness-for-duty certification before being allowed to return to work.

Leave may be taken on an intermittent or reduced schedule to care for an illness; yet may not be taken intermittently for the care of a newborn or newly adopted child, unless that care is for a serious illness. When leave is taken intermittently, the company may transfer the employee to another position with equivalent pay and benefits, which is better suited to periods of absence.

Subject to certain conditions, the employee or the company may choose to use accrued paid leave (such as sick leave or vacation leave) concurrent with FMLA leave.

The company will maintain group health insurance coverage for an employee on family and medical leave on the same terms as if the employee had continued work. If applicable, arrangements will be made for the employee to pay their share of health insurance premiums while on leave. The company may recover premiums paid to maintain health coverage for an employee who fails to return to work from family and medical leave.

If an employee would like the company to maintain other paid benefits during the period of leave, premiums and charges which are partially or wholly paid by the employee must continue to be paid by the employee during the leave time.

Family and medical leave will not result in the loss of any employment benefit accrued prior to the date on which the leave commenced. However, an employee on family and medical leave does not continue to accrue benefits (e.g., sick leave or vacation leave) during the period of family and medical leave. Questions regarding particular benefits should be directed to the Human Resources Manager.

Upon returning from FMLA leave, an employee will be restored to their original job or an equivalent job with equivalent benefits, pay, seniority, and other employment terms and conditions as provided by the Family and Medical Leave Act.

Taking another job while on family or medical leave or any other authorized leave may lead to disciplinary action, up to and including discharge.

3. On-the-job practices and policies

Define your company norms and practices including payroll, timekeeping, schedules, and the nuts and bolts of day-to-day operations.

• Health and safety policy
• Open door policy
• Employee introductory period
• Payroll
• Working schedule policy
• Direct deposit policy
• Company vehicles policy

Open door policy

The open door policy is important to establish a culture that promotes transparency, and speaking up when genuine concerns arise. It also helps reduce the risk that might arise if an employee raises a (potentially serious) concern to their supervisor, who then fails to take action. An open door policy gives that employee license to escalate their concern and management a chance to address the concern.

[Company name] has an open-door policy and takes employee concerns and problems seriously. The company values each employee and strives to provide a positive work experience. Every employee is encouraged to speak with their immediate supervisor at any time with questions or problems relating to the job while employed. If you are unable to satisfactorily resolve your question or problem with your supervisor, or if you prefer not to approach your supervisor with your problem or question, you can request a meeting with a manager or with the Human Resources Manager.

Introductory period policy

Many companies choose to have an introductory period for new employees. This gives the company (and the employee) a chance to determine whether the job is a good fit for them. You can adjust the length of your introductory period.

The first 90 days of employment is an introductory period. This is an opportunity for [Company name] to evaluate your performance and suitability for the role. It also is an opportunity for you to decide whether you are happy being employed at [Company name]. The company may extend the introductory period if it desires. If at the end of the introductory period, the relationship is satisfactory to the new employee and the supervisor, the employment relationship will continue. Successfully completing the trial period doesn’t alter the employee’s at-will status.

Employment records policy

The employment records policy exists for at least two reasons. First, it places responsibility on the employee to update the company when their address, phone number, emergency contact, or other information changes. It also helps you comply with laws requiring employees can view their personnel records. Note that there are many states that have record-keeping requirements as well. You can refer to our state-by-state guide.

In order to obtain employment, all employees provide the company with personal information such as their address and telephone number. This information is saved in the employee’s personnel records. Please inform the Human Resources Manager of any changes to personal employment information, including emergency contact. Changes to your address, marital status, etc. can affect your withholding tax and benefit coverage.

Upon written request, the company will permit employees to inspect their personnel records. Employees should contact the Human Resources Manager to schedule a time to view personnel records. Inspections will occur in the presence of a company official. If an employee disagrees with any portion of the personnel record and a correction cannot be agreed upon, the employee may submit an explanatory statement to be attached to the records. The company complies with all state and federal laws regarding employee access to employment records.

Payroll policy

Setting clear expectations for your employees on when and how they will be paid is important for obvious reasons. Here’s an example of a payroll policy:

All employees of the company are paid [weekly]. The employer takes all reasonable steps to ensure that employees receive the correct amount of pay in each paycheck and that they are paid promptly on the scheduled payday.

By law, the company is required to make deductions for Social Security, federal income tax, and any other appropriate taxes. These required deductions may also include any court-ordered garnishments. Your payroll stub will also differentiate between regular pay received and overtime pay received. If you believe there is an error in your pay, bring the matter to the attention of the Payroll Manager immediately so that the company can resolve the issue as quickly as possible.

Working schedule policy

This is where you establish expectations around reporting hours worked and overtime policies (if applicable).

It is the employee’s responsibility to accurately report time worked and to conform to work schedules and overtime policies in effect at the time. Work performed outside of authorized work hours may lead to disciplinary action unless approved by a supervisor in writing.

Employees will be provided with meal and rest periods as required by law. Your supervisor will provide further details.

4. Standards of conduct

This is where employee rules and expectations should go. There can be a lot of them, and this is an important part of any handbook.

• Non-harassment and non-discrimination policies
• Sexual harassment and workplace violence policies
• Attendance policies
• Conflicts of interest, confidentiality, and business ethics
• Health and safety policies
• Work-from-home and virtual meetings policies

Non-Harassment Policy / Non-Discrimination Policy

The non-harassment and non-discrimination policies are arguably one of the most important parts of the employee handbook. It needs to be crystal clear, and explicit, and permeate the entire organization from the top down. A consistent focus on organization-wide buy-in, along with taking harassment claims seriously will go a long way to keep your company out of trouble.

[Company name] believes that each of us should be able to work in an environment free of discrimination and harassment. To this end, the company prohibits and will not tolerate discrimination or harassment. This policy applies equally to any form of discrimination or harassment based on any legally protected status under local, state, and/or federal law, including but not limited to sex, race, color, religion, disability, pregnancy, national origin, age, sexual orientation, or gender identity.

Harassment is verbal or physical conduct designed to threaten, intimidate or coerce. It includes verbal taunting (including racial and ethnic slurs) which impairs an employee’s ability to perform their job. Harassment includes but is not limited to:

• Verbal conduct such as threats, epithets, derogatory comments, or slurs
• Visual conduct such as derogatory posters, photographs, cartoons, drawings, images, or gestures
• Physical conduct such as assault, unwanted touching, or blocking normal movement
• Verbal conduct such as threats, epithets, derogatory comments, or slurs
• Visual conduct such as derogatory posters, photographs, cartoons, drawings, or gestures; physical conduct such as assault, unwanted touching, or blocking normal movement.

If you feel that you have been subjected to conduct that violates this policy, you should immediately report the matter to your supervisor. If you are unable for any reason to contact this person, or if you have not received a satisfactory response, please contact the next level manager or the Human Resources Manager. Employees are permitted to report the matter directly to Human Resources if preferred.

Sexual Harassment Policy

Similar to the other anti-harassment policies, this policy is foundational for promoting a no-tolerance stance on sexual harassment. Some states have sexual harassment training requirements. You can learn more about this in our state-by-state guide.

“Sexual Harassment” is defined as unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature when (a) submission to or rejection of such advances, requests, or conduct is made explicitly or implicitly a term or condition of employment or as a basis for employment decisions; (b) such advances, requests or conduct have the purpose or effect of unreasonably interfering with an individual’s work performance by creating an intimidating, hostile, humiliating, or sexually offensive work environment.

Examples of sexual harassment can include but are not limited to asking for sexual favors in exchange for work benefits, the posting of sexually graphic materials, jokes, stories, comments, or innuendoes of a sexual nature, making sexual gestures or expressions, unwanted touching of a person’s clothing or hair, whistling or “catcalls”, staring at someone, or blocking or impeding a person’s path. It is the responsibility of the employee who is subjected to harassment or who witnesses a case of unlawful harassment to report such an incident directly to their supervisor or, if that is not appropriate, to the Human Resources Manager.

Any company employee who feels that they have been harassed or discriminated against, or has witnessed or become aware of discrimination or harassment in violation of these policies, should bring the matter to the immediate attention of their supervisor or the Human Resources Manager. The company will promptly investigate all allegations of discrimination and harassment, and take action as appropriate based on the outcome of the investigation. An investigation and its results will be treated as confidential to the extent feasible, and the company will take appropriate action based on the outcome of the investigation.

There will be no reprisal or retaliation against anyone who reports such an incident as it is unlawful to retaliate against anyone for filing a complaint or for cooperating in an investigation of a harassment complaint. No disciplinary action will be taken without a thorough investigation of the facts, which shall include gathering statements from all parties and witnesses involved.

Employees, contractors, and temporary workers are responsible for complying with this policy by reporting all instances of alleged harassment and cooperating in any investigation of the alleged harassment.

Supervisors and managers are responsible for implementing this policy in their departments, keeping the workplace free from any form of harassment, ensuring that all associates, contractors, and temporary workers understand this policy, taking harassment complaints seriously, and notifying Human Resources immediately about any complaints of sexual or other forms of harassment.

Workplace Violence Policy

Workplace violence is surprisingly common. Set the standard early with a strong workplace violence policy.

It is [Company name]’s policy that any threats, threatening language, or any other acts of aggression or violence made toward or by any company employee will not be tolerated. Violations of this policy may lead to disciplinary action, up to and including immediate termination of employment.

Employees have a duty to warn their supervisors, security personnel, or human resources representatives of any suspicious behavior, situations, or incidents that they observe or are aware of that involve other employees, former employees, customers, suppliers, visitors, or other parties. These situations include, for example, threats or acts of violence, aggressive behavior, offensive acts, threatening or offensive comments or remarks, or similar behavior. Employee reports made according to this policy will be held in confidence to the maximum possible extent. The company will not permit any form of retaliation against any employee for filing a report under this policy.

[Company name] will promptly and thoroughly investigate all reports of threats of violence or incidents of actual violence and suspicious individuals or activities. The identity of the individual making a report will be protected as much as possible. To maintain workplace safety and the integrity of its investigation, the company may suspend employees suspected of workplace violence or threats of violence, either with or without pay, pending investigation.

Anyone found to be responsible for threats of or actual violence or other conduct that violates these guidelines will be subject to prompt disciplinary action up to and including termination of employment.

Punctuality and Attendance Policy

This policy is a must for almost all companies. If an employee doesn't show up for work, your clearly defined “no call, no show” policy will provide the company with a clear plan for how to address the issue. It's also helpful to establish your company norms around attendance, lateness, etc.

Scheduled hours may vary depending on work location and job responsibilities. Supervisors will provide employees with their work schedules. Should an employee have any questions regarding their work schedule, the employee should contact the supervisor. The company does not tolerate absenteeism without an excuse. Employees who will be late to or absent from work should notify a supervisor in advance, or as soon as practicable in the event of an emergency. Employees who need to leave early, for illness or otherwise, should inform a supervisor before departure. Unauthorized departures may result in disciplinary action.

Employees are expected to arrive on time and ready for work. An employee who arrives after their scheduled arrival time is considered tardy. The company recognizes that situations arise which hinder punctuality; regardless, excessive tardiness is prohibited and may be subject to disciplinary action.

An employee who fails to report for their scheduled workday and has not notified their supervisor of their tardiness or absence within the first two hours of their scheduled shift will be considered a No Call No Show (NCNS). Two consecutive NCNSs are considered job abandonment and will be designated as a voluntary resignation of employment. In the case of job abandonment, the employee’s final date of employment for purposes of payroll and welfare benefits will be their last day worked.

We do recognize that there are times when absences and tardiness cannot be avoided. In such cases, you are expected to notify your supervisor as early as possible, but no later than the start of your workday. Asking another employee, friend, or relative to give this notice is improper and constitutes grounds for disciplinary action, unless unavoidable. Please call, stating the nature of your absence and its expected duration, every day that you are absent.

The company reserves the right to require reasonable proof of illness or temporary disability. Excessive absences or tardiness will result in disciplinary action up to and including termination.

Personal and Company-Owned Communication Devices Policy

There are a couple of benefits to having a policy that sets expectations around devices, connecting to the company networks, and communications. An important callout here is that it's important to set expectations around the privacy of employee communication as they relate to work. Your employees should be aware that company emails and other communications may not be private.

The purpose of this policy is to define standards, procedures, and restrictions for end-users who have legitimate business uses for connecting a personally-owned mobile device to the company’s corporate network. This mobile device policy applies, but is not limited, to all devices and accompanying media that fit the following classifications:

• Smartphones and tablets
• Portable media devices
• Portable gaming devices
• Laptop/notebook computers
• Any mobile device capable of storing corporate data and connecting to a network

The policy applies to any hardware and related software that is not corporately owned or supplied but could be used to access corporate resources. That is, devices that employees have purchased for personal use but also wish to use in the business environment. The overriding goal of this policy is to protect the integrity of the confidential client and business data that resides within the company’s technology infrastructure. This policy intends to prevent this data from being deliberately or inadvertently stored insecurely on a mobile device or carried over an insecure network where it could potentially be accessed by unsanctioned resources. A breach of this type could result in loss of information, damage to critical applications, loss of revenue, and damage to the company’s public image. Therefore, all users employing a mobile device connected to the company’s corporate network, and/or capable of backing up, storing, or otherwise accessing corporate data of any type, must adhere to company-defined processes for doing so. For approval and further information, contact your supervisor.

Company-Provided Portable Communication Devices (PCDs), including cell phones, tablets, and computers, should be used primarily for business purposes. Employees have no reasonable expectation of privacy regarding the use of such devices, and all use is subject to monitoring, to the maximum extent permitted by applicable law. This includes, as permitted by law, the right to monitor personal communications as necessary. Some employees may be authorized to use their PCD for business purposes. These employees should work with the IT department to configure their PCD for business use. Communications sent via a personal PCD also may be subject to monitoring if sent through the company's networks, and the PCD must be provided for inspection and review upon request. When sending a text message or using a PCD for business purposes, whether it is a company-provided or personal device, employees must comply with applicable company guidelines, including policies on sexual harassment, discrimination, conduct, confidentiality, equipment use, and operation of vehicles.

Inspections Policy

Although an inspection policy doesn't give you a license to break any state laws (for example, searching an employee's car at work may be problematic), an inspection policy helps provide the framework for keeping your workplace safe, and free of weapons, drugs, or other prohibited items.

[COMPANY NAME] wishes to maintain a work environment that is free of illegal drugs, alcohol, firearms, explosives, or other improper materials. To this end, [COMPANY NAME] prohibits the control, possession, transfer, sale, or use of such materials on its premises. The company may require employees while on company or client property, to agree to the inspection of their persons, personal possessions, property, and work areas including vehicles, desks, cabinets, workstations, packages, handbags, briefcases, and other personal possessions or places of concealment, as well as a personal email sent to the company or its clients. The cooperation of all employees is required to successfully administer this policy. Desks, lockers, and other storage devices may be provided for the convenience of employees but remain the sole property of the employer. Accordingly, any authorized agent or representative of the employer can inspect them, as well as any articles found within them, at any time, either with or without prior notice. Employees are expected to cooperate in the conduct of any search or inspection.

Conflict of Interest and Business Ethics

A solid ethics and conflict of interest policy in your handbook should prompt your employees to raise potentially harmful with the company before they occur. A general ethics policy also helps establish what's expected from your team.

All active employees must notify the company before they take outside employment so that the company will have reasonable notice to decide whether it sees, at that time, any conflict of interest. An employee may hold a job with another organization as long as they satisfactorily perform their job responsibilities with the company, including scheduling requirements, and that the position is approved in advance. Employees should consider the impact that outside employment may have on their health and physical endurance and safety. All employees will be judged by the same performance standards and will be subject to the employer's scheduling demands, regardless of any existing outside work requirements. The company retains the right to prohibit second jobs if it considers them to be a safety exposure.

The purpose of this policy is to ensure that the company's reputation is not compromised. The fundamental principle guiding this policy is that no employee should have, or appear to have, personal interests or relationships that actually or potentially conflict with the best interests of the company.

Employees have an obligation to conduct business within guidelines that prohibit actual or potential conflicts of interest. Employees can seek further clarification on issues related to the subject of acceptable standards of operation. Situations that would constitute a conflict in most cases include but are not limited to:

• Transactions with outside firms that are not conducted within a framework established or controlled by the executive level of the organization.
• Bribes, bonuses, fringe benefits, unusual price breaks, or excess volumes are designed to benefit another company, an employee, a relative, or an acquaintance.
• Holding an interest in, or being employed by, any company that competes with [Company name].

No "presumption of guilt" is created by the mere existence of a relationship with outside personnel. However, if an employee has any influence on transactions involving purchases, contracts, or leases, they must disclose to an officer of the organization as soon as possible the existence of any actual or potential conflict of interest so that safeguards can be established to protect all parties. A conflict of interest would also exist when a member of an employee's immediate family is involved in situations such as those above.

Health and Safety Policy

Health and safety policies vary widely based on the industry you're working in. A health and safety policy in an office will vary greatly from a manufacturer. They're an important part of any employee handbook and should be a part of every company's culture. A key element of a Health and safety policy is reporting. Make sure you state clearly that employees have a duty to report unsafe conditions, damaged equipment, etc.

5. State and local policies

In recent years, there has been a dramatic increase in the rate of changes to state and (most recently) city-specific policies that belong in an employee handbook. The high-level impact on employers is that there is more to communicate.

If you have employees in multiple states, be sure your handbook includes policies relevant to those locations. This is important because it helps keep your company and employees aligned and clear on what policies apply. The result of this alignment is keeping the focus on work and not on what sick leave policy is applicable. Need a handbooks with state and city-specific policies? It’s always best to review your handbook with your trusted advisors (including your attorney) to review your final handbook.

You need federal policies in your handbook.

Core federal policies including equal employment opportunity, non-discrimination, and more.

You need state policies in your handbook.

State-specific polices are required for every state where you have employees. Each state has it's own required policies.

You need local policies in your handbook.

Many cities and counties have specific protections, benefits, and rules for employees in those locations.

Employee handbook requirements by state

Click on a state to learn more about policies and recommendations.