Most small businesses either do not have an employee handbook or have one that is outdated and ignored. The barrier is the perceived complexity. Claude removes that barrier — but legal review remains mandatory. Here is the workflow.
An employee handbook documents the rules of how your company operates — PTO, expense policies, IT use, conduct expectations, complaint procedures. Without one, every employee operates from informal norms, and disputes have no documented standard.
Small businesses skip handbooks because they assume legal complexity. Claude makes the drafting accessible. You still need legal review before publishing — but the drafting is no longer the bottleneck.
1. Welcome + company values. 1 page.
2. Employment basics. At-will language, classification, equal opportunity.
3. Compensation + benefits. Salary cadence, PTO, health, 401k, expense policy.
4. Workplace conduct. Anti-harassment, professional conduct, conflict of interest.
5. Technology + IT. Acceptable use, AI policy (see our template), data security.
6. Time off + leave. PTO, sick, parental, bereavement.
7. Performance + reviews. Cadence, expectations.
8. Termination procedures. Resignation, separation, returning property.
9. Acknowledgement signature. Required.
Draft an employee handbook for [COMPANY NAME]. Company details: - Headcount: [N] - State of incorporation: [STATE] - Industry: [INDUSTRY] - PTO policy: [SPECIFIC] - Health benefits: [BRIEF] - Specific values we want to reinforce: [LIST] - Specific policies we already have: [PASTE] Use the 9-section structure. Constraints: - Total length: 15-25 pages - Plain language (8th-grade reading level) - Each section opens with what the section covers in 1 sentence - Specific examples where rules might be ambiguous - Include callout for state-specific employment law variations - Include AI usage section (no PII, no client confidential, verification required) At the end, list: - Sections that REQUIRE attorney review before publishing - Sections that should be updated annually - Specific state-law items I need to verify This is a starting draft. Final version needs employment attorney review.
1. Employment attorney review. State employment law varies. AI drafts are starting points, not legal documents.
2. Acknowledgement signatures. Every employee signs that they received and read the handbook.
3. Annual review cadence. Laws change. Handbooks should be reviewed yearly.
4. Translation if you have non-English-primary employees. Legal requirement in many jurisdictions.