Every higher education institution should have an employee handbook designed to meet its standards for employee conduct and ensure compliance with applicable employment laws. A well-crafted handbook will support the success of an institution's goals, save administrative time and reduce the risk of legal claims and liability. This brief article discusses the crucial functions of employee handbooks as well as the need for maintaining separate or supplemental handbooks for faculty and academic staff, non-academic staff, undergraduate student employees, and graduate student employees. It recommends handbooks for all employee subsets be reviewed regularly to ensure legal compliance. Additionally, the article suggests that the handbook be referred to regularly as a source of information and guidance for employees to promote compliance with its policies and reduce misunderstandings that may affect workplace morale or even lead to legal action. Higher education institutions have much to gain by adopting and maintaining a high-quality employee handbook. When designed properly, an effective policy handbook can protect the institution, support a productive workplace culture, save administrative time and ease concerns of employees by creating clear expectations.