LEGAL
Employment & Advisory Contracts
Startup Employee Handbooks — Why Even Small Teams Need One
A simple employee handbook clarifies workplace policies, reduces liability, and sets cultural expectations. It’s a foundational HR tool that grows with your company.
Why it Matters
An employee handbook sets the tone for culture, compliance, and expectations.
Even if you only have a few team members, a well-written handbook prevents misunderstandings, supports legal compliance, and helps you scale with clarity.
Founders Checklist
Include policies on work hours, PTO, leave, benefits, and conduct
Add required state and federal compliance language
Define anti-harassment, non-discrimination, and reporting procedures
Include an at-will employment clause
Collect signed acknowledgement forms from all employees
Review and update annually — laws and teams change
Founder Fails
Skipped a handbook > legal exposure on harassment or leave claims
Included policies they didn’t enforce > inconsistent treatment issues
Failed to update for new state laws (e.g., paid sick leave, lactation accommodation)
No record of acknowledgement > hard to defend in disputes
When to ask for Help
Before hiring beyond your founding team
When implementing remote or hybrid work policies
If you're unsure what policies need to be documented
After receiving complaints or facing performance issues
When updating policies related to compliance or benefits
Frequently Asked Questions
Q: Do I really need a handbook if I only have 3–5 people?
A: Yes. Small teams have the most risk from unclear expectations. A handbook protects you legally and helps you lead intentionally.
Q: Is a handbook the same as an employment agreement?
A: No — the agreement covers individual terms (e.g., pay, equity); the handbook covers company-wide policies and expectations.
Q: What if we’re remote or across multiple states?
A: Include remote work policies and tailor compliance sections to each state. There are federal requirements, but states like California and New York have specific rules.
Q: Can I just copy one from another startup?
A: It’s a decent starting point, but you must tailor for:
· Your company values
· Your state laws
· Your benefit offerings