7 employee handbook mistakes to avoid (+ what not to include)

Creating an employee handbook is hard work — but ruining one? That's surprisingly easy. Even well-intentioned companies make mistakes that turn their handbooks into bloated, confusing, or legally risky documents that nobody reads.

If you're working on creating an employee handbook, learning what not to do is just as important as knowing what to include.

This guide covers the 7 most common employee handbook mistakes and exactly what you should never include in yours.

Why handbook mistakes matter

A bad handbook isn't just annoying — it can have real consequences:

• Legal exposure — Unclear or inconsistent policies can be used against you in disputes
• Employee confusion — Nobody follows policies they don't understand
• Wasted time — Managers spend hours answering questions your handbook should cover
• Compliance issues — Missing required disclosures can result in fines
• Cultural misalignment — A handbook that doesn't reflect your actual culture breeds cynicism

The good news? Most of these mistakes are easy to avoid once you know what to look for.

Mistake #1: Making it too long and overwhelming

The problem: Many companies try to document everything, creating 100+ page handbooks that nobody reads. If employees can't find answers quickly, your handbook has failed.

What goes wrong:

• Including excessive detail on minor policies
• Repeating the same information in multiple sections
• Documenting every possible edge case
• Copying entire legal documents into the handbook

How to fix it:

• Focus on what employees actually need to know
• Link out to detailed policy documents instead of including everything
• Use clear headings so people can find information quickly
• Aim for 30-50 pages maximum for most companies

For guidance on what should be included in an employee handbook, focus on the essentials and keep it concise.

Mistake #2: Using overly legal language nobody understands

The problem: Your handbook isn't a legal contract — it's a communication tool. When you write like a lawyer, employees won't read it or understand it.

What goes wrong:

• Using complex legal terminology without explanation
• Writing in passive voice with dense paragraphs
• Including "heretofore," "whereas," and similar legalese
• Making policies sound threatening rather than helpful

How to fix it:

• Write at an 8th-grade reading level
• Use active voice and short sentences
• Replace jargon with everyday language
• Include examples to illustrate policies
• Have non-HR employees read it — if they're confused, simplify

Look at employee handbook examples from companies like Basecamp and PostHog to see how clear, human language works.

Mistake #3: Being too rigid with policies

The problem: Overly specific policies box you into corners. When you document every detail, you lose flexibility and create loopholes you didn't intend.

What goes wrong:

• Specifying exact numbers that may need to change
• Creating exhaustive lists that miss edge cases
• Promising specific outcomes you can't guarantee
• Making policies so detailed they become unenforceable

How to fix it:

• Use ranges instead of exact numbers when appropriate
• Include phrases like "generally," "typically," or "may"
• Reference other documents for specific details
• Focus on principles rather than exhaustive rules
• Add "exceptions may apply — talk to HR" where needed

Mistake #4: Forgetting to update it regularly

The problem: An outdated handbook is worse than no handbook. Employees lose trust when policies don't match reality, and you could be distributing information that's no longer legally compliant.

What goes wrong:

• Referencing benefits or perks you no longer offer
• Missing new legal requirements (paid leave, etc.)
• Listing people who no longer work there
• Keeping policies that contradict current practice
• Ignoring feedback about confusing sections

How to fix it:

• Set a calendar reminder to review annually
• Update immediately when laws change
• Track questions and confusion — those are gaps to address
• Version your handbook and date it clearly
• Use a digital handbook that's easy to update (not PDFs)
• Assign someone ownership for keeping it current

Pro tip: If you're using a PDF, you're making updates harder than they need to be. Modern digital handbooks can be updated in seconds and are always current.

Mistake #5: Skipping legal review

The problem: Employment law is complex, varies by state, and changes frequently. DIY handbooks often miss required disclosures or include language that creates unintended legal obligations.

What goes wrong:

• Missing mandatory state-specific disclosures
• Creating implied contracts without realizing it
• Using discriminatory language
• Forgetting at-will employment disclaimers
• Including policies that violate labor laws

Real example of what can go wrong:

A company wrote: "We guarantee job security as long as you meet performance standards." This accidentally created a contractual obligation and made it nearly impossible to do layoffs or restructuring without legal issues.

How to fix it:

• Have an employment lawyer review your handbook before publishing
• Review again whenever you make significant changes
• Include proper disclaimers about at-will employment
• Make sure state-specific requirements are met
• Ask your lawyer to flag risky language

Yes, legal review costs money. But it's a lot cheaper than a lawsuit or compliance fine.

Mistake #6: Making it hard to find or access

The problem: If employees can't find your handbook when they need it, it might as well not exist. This is especially common with PDF handbooks stored in obscure folder locations.

What goes wrong:

• Buried in a file server nobody knows how to access
• No search functionality to find specific topics
• Requires downloading and waiting for a large file
• Different versions floating around, causing confusion
• Mobile-unfriendly format

How to fix it:

• Use a web-based handbook with a simple URL (learn more about digital employee handbooks)
• Pin the link in Slack or your company intranet
• Include it in onboarding welcome emails
• Make it searchable so people can find answers fast
• Ensure it works well on mobile devices
• Have a single source of truth (not multiple copies)

Mistake #7: Creating a handbook that doesn't match reality

The problem: This might be the worst mistake of all. When your handbook describes an idealized version of your company that doesn't exist, employees notice — and they lose trust.

What goes wrong:

• Claiming to offer benefits you don't actually provide
• Describing a culture that doesn't match day-to-day life
• Setting policies that managers don't actually follow
• Making promises you can't keep
• Copying another company's handbook without customizing it

How to fix it:

• Document your actual policies, not aspirational ones
• Get input from managers about what really happens
• Survey new hires to identify disconnects
• If your handbook doesn't match reality, fix the reality — not just the handbook
• Be honest about limitations and constraints

What NOT to include in your handbook

Beyond avoiding the mistakes above, there are specific things you should never put in an employee handbook:

1. Promises you can't guarantee

Avoid language like "we will never," "always," or "guaranteed." Things change, and absolute promises can create contractual obligations.

• ❌ "All employees will receive annual raises"
• ❌ "We guarantee you'll never work weekends"
• ✅ "We review compensation annually and adjust based on performance and market conditions"

2. Overly personal or invasive policies

Don't police employees' personal lives or non-work behavior unless it directly affects the workplace.

• ❌ Policies about personal relationships (unless clear conflicts of interest)
• ❌ Rules about social media posts on personal accounts
• ❌ Appearance standards beyond what's necessary for safety or brand

3. Information that becomes outdated quickly

Avoid including specific names, phone numbers, prices, or dates that will need constant updating.

• ❌ "Contact Sarah Johnson, HR Director, at extension 4523"
• ✅ "Contact your HR representative (find current contacts on the intranet)"

4. Illegal or discriminatory policies

This should be obvious, but avoid anything that could be discriminatory based on protected classes.

• ❌ "English-only workplace" (unless genuine business necessity)
• ❌ Different standards for different groups
• ❌ Blanket bans on discussing pay (this violates labor law)

5. Procedures that should be separate documents

Not everything belongs in the main handbook. Some things should be separate:

• Detailed IT security protocols
• Step-by-step operational procedures
• Emergency response plans
• Complex technical processes

Instead, reference these documents and provide links.

6. Negative or fear-based language

Your handbook should be helpful, not threatening. Avoid excessive "you will be terminated" language.

• ❌ "Violation of this policy will result in immediate termination and possible legal action"
• ✅ "This policy is important for everyone's safety. Serious violations may result in disciplinary action up to and including termination"

7. Confidential business information

Remember that your handbook may be shared or seen by people outside your company. Don't include:

• Proprietary business strategies
• Financial details that aren't public
• Sensitive competitive information
• Details about ongoing legal matters

Final thoughts

Creating a good employee handbook is about balance:

• Comprehensive but concise — Cover what matters without overwhelming
• Clear but flexible — Be specific where needed, but leave room for judgment
• Professional but human — Use proper language without sounding like a robot
• Protective but positive — Cover legal requirements without being threatening

Most handbook mistakes come from two sources: trying to do too much, or not putting in enough effort. The sweet spot is a focused, well-written document that's regularly maintained.

If you're starting from scratch, check out our guide on how to create an employee handbook to get the basics right from the beginning.