Although no state or federal law requires an employer to have an employee handbook, there are many policies and procedures the law does require employers to communicate to employees. Many employers use an employee handbook to describe the employer’s history, mission, values, policies, procedures, and employee benefits. A well-written employee handbook also answers many routine questions employees may have and avoids using additional time and resources of employees, the human resources (HR) department, or managers in answering those questions.

Employers often require each employee to sign a written acknowledgment of receiving the employee handbook—but must be careful not to have the handbook construed as an employment agreement, which might change the employee’s status from an at-will employee who can be fired or terminated at will to an employee who can only be fired or terminated for cause.

Employers must also be careful to avoid overly broad statements in the employee handbook that restrict the ability of employees to discuss wages and other terms and conditions of employment—including criticisms of the employer—which are known as protected, concerted activities.

In Minnesota, while there is no state or federal mandate that requires employers to provide an employee handbook, it is a common practice used to communicate various policies and procedures that are legally required to be disclosed to employees. These handbooks typically include information about the company's history, mission, values, policies, procedures, and employee benefits. They serve to answer frequently asked questions, saving time for HR departments and managers. When distributing handbooks, Minnesota employers often ask employees to sign an acknowledgment of receipt. However, it is crucial that the language in the handbook does not inadvertently create a contractual agreement, which could alter the at-will employment relationship, potentially limiting termination to 'for cause' scenarios only. Additionally, employers must ensure that the handbook does not contain provisions that would unlawfully restrict employees from engaging in protected, concerted activities, such as discussing wages, working conditions, or criticisms of the employer, as these are rights protected under the National Labor Relations Act (NLRA).