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Why You Need an Acceptable Use Policy and How to Create One

Set clear expectations for how employees use company technology, access business information and protect sensitive data.

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Written by:
Andrew Martins, Senior Analyst
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Editor verified:
Gretchen Grunburg,Senior Editor
Last Updated Nov 06, 2026
Business.com earns commissions from some listed providers. Editorial Guidelines.
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Your employees rely on computers, smartphones, internet access and a growing number of apps to get their jobs done. But without clear guidelines, it’s easy for someone to download an unapproved program, store sensitive customer information in the wrong place or unknowingly put your business at risk. An acceptable use policy (AUP) helps prevent these problems by spelling out how employees should use technology at work and what they should avoid. Here’s what to include in your policy, from personal device rules and employee monitoring to the use of artificial intelligence (AI), and how to make sure your team follows it.

What is an acceptable use policy (AUP)?

An AUP is a formal workplace policy that establishes the rules and expectations for how employees and other authorized users can access and use a company’s technology, systems and information. It spells out what’s permitted, what’s prohibited and what employees are responsible for when using company resources. This can include everything from computers, mobile devices and email to cloud applications, networks and AI tools. Your policy should also make clear who must follow these rules, including contractors and temporary workers, and whether they apply to personal devices used for work.

“An AUP helps manage risk by ensuring compliance with legal and regulatory requirements, especially in industries that handle sensitive data, such as healthcare,” explained Katrina Rosseini, founder and principal of KRR Ventures Advisory. “It sets clear boundaries for acceptable use while proactively protecting against data breaches, cybersecurity threats and legal liabilities, ensuring proper technology use in the workplace.”

Beyond setting rules, an AUP helps employees understand good information security and data management practices, along with the consequences of misusing company technology. 

Sam McMahon, director of IT and security at Valimail, added that an AUP is also a tool for aligning employee behavior with security, compliance and operational goals. “A strong AUP should be clear, practical and adaptable, reflecting both the technical and cultural realities of how your team operates,” McMahon said.

Keep in mind that while a written policy can help establish expectations and support enforcement, its legal effect depends on how it’s written and implemented, as well as on applicable laws.

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Like your remote work policy and attendance policy, your AUP should be written clearly and in plain language. The more understandable your official policies are, the more effective they’ll be.

Acceptable use policy vs. end-user license agreement

An acceptable use policy and an end-user license agreement (EULA) both establish rules for using technology, but they serve different purposes. An EULA is a legal agreement between a software provider and the person or organization using its software. It typically covers licensing terms, installation limits and restrictions on copying or distributing the program. An AUP, on the other hand, establishes rules for how people can use a company’s technology, networks or services.

Both can apply outside the workplace. For example, consumers may encounter EULAs when installing software, while schools, internet service providers and online platforms often use AUPs to establish rules for accessing their networks and services.

Why do you need an acceptable use policy?

When employees use company computers, personal devices, email and online applications throughout the workday, there are plenty of opportunities for something to go wrong. Someone might download an unsafe program, share sensitive information through an unapproved app or connect to an unsecured network while working remotely. An AUP helps businesses manage these security and cyber risks by establishing clear rules for how employees should use technology. McMahon said having these guidelines in place also helps prevent confusion and misunderstandings about what’s expected of employees.

Your AUP should also explain how employees can report security concerns and what may happen if someone violates the rules. Along with employee training, access controls and incident response procedures, it can help demonstrate that your business takes information security seriously. 

“Defining how employees are permitted to utilize company-owned technology … helps the IT shop better understand and predict servicing and replacement budgets,” said Evan Dornbush, founder and CEO of DesiredEffect.io and a former NSA cybersecurity expert. “It helps the security team detect abnormalities [that] could be indicative of an intruder … In some cases, it can help owners secure better insurance rates.”

Of course, having a written policy doesn’t guarantee compliance, prevent every security breach or eliminate legal liability.

Benefits of an acceptable use policy

A well-written AUP goes beyond establishing rules for using company technology. It can also help employees make better decisions, protect sensitive information and give your business a clearer way to address problems when they arise. Here are some of the biggest benefits:

  • AUPs help employees understand what’s expected. Employees may not always know whether it’s safe to download a particular app, share files through a personal account or open an unexpected attachment. An AUP provides practical guidance on business cybersecurity, including which tools are approved, how to protect login credentials and when to contact IT for help.
  • AUPs reinforce the importance of security. By spelling out the consequences of misusing company technology, an AUP shows employees that security rules need to be taken seriously. “An AUP sets clear expectations and consequences,” said Rosseini, “helping employees protect company data and avoid careless mistakes.”
  • AUPs can improve productivity. Clear guidelines help employees understand when personal internet use is acceptable and when it interferes with their work. You might restrict excessive streaming or personal downloads, for example, while making exceptions for employees who need social media, video platforms or other online tools to do their jobs.
  • AUPs support regulatory and industry compliance. Depending on your industry, you may need to follow specific rules for handling sensitive information. For example, businesses that accept credit cards must meet applicable PCI compliance standards, while healthcare organizations covered by HIPAA must follow HIPAA requirements for protecting patients’ health information. An AUP can help employees understand those responsibilities, although it won’t satisfy every compliance requirement on its own.
  • AUPs discourage unlawful activity. Rules prohibiting software piracy, harassment and unauthorized access make it clear which behaviors won’t be tolerated. They also give managers a basis for addressing misconduct, subject to applicable laws. Of course, having a policy doesn’t automatically protect a business from liability for an employee’s actions.
  • AUPs can help manage storage and backup costs. Personal downloads, unnecessary files and unapproved storage services can create additional expenses and make company data harder to manage. An AUP can establish where employees should save work files, what personal content is permitted and how information should be retained. Just make sure those rules align with your backup and records-retention procedures so important business information isn’t accidentally deleted.
  • AUPs document company expectations. A written policy gives you a record of the rules employees have been asked to follow. Combined with training records and employee acknowledgments, it can help demonstrate that you’ve communicated your security expectations. You’ll still need to apply the policy consistently, though, since a signed policy alone doesn’t prove your business is taking appropriate precautions.
  • AUPs help address insider threats. Not every security problem comes from an outside hacker. Employees can accidentally expose sensitive information, and in some cases, they may deliberately misuse their access. Rosseini emphasized that AUPs can help address both situations. “A well-structured AUP deters malicious or negligent actions, preventing insider threats to the organization’s security,” she said.

What should you include in an acceptable use policy?

use policy graphic

Every business has different technology needs, but there are several key elements you’ll want to address in your AUP.

1. Purpose

Start by explaining why your business needs an acceptable use policy and what you hope to accomplish with it. For example, you might want to protect sensitive customer information, prevent unauthorized access to company systems or make sure employees understand how to use workplace technology responsibly. Giving employees some context for these rules can help them understand why they’re important rather than seeing them as just another set of restrictions.

This section should also identify who the policy applies to and which devices, networks and systems it covers, including personal devices used for work, if applicable.

2. Overall restrictions

Your AUP should spell out which activities are prohibited when employees use company technology, networks or systems. Be specific so there’s little room for confusion about what’s allowed. Common restrictions include:

  • Using company technology for illegal activities
  • Disabling or bypassing device and network security measures
  • Sending company or customer information through unapproved personal email, messaging or file-sharing services
  • Installing software or apps that haven’t been approved by the company, including programs that could harm company systems
  • Sharing confidential company or customer information with unauthorized people

You can also establish rules for accessing certain websites, using company email and handling other activities that may pose security risks.

3. Software installation rules

Employees often need to download new programs or try different online tools to get their work done, but not everything they find is safe to use. Your AUP should establish security practices for installing software, along with rules for browser extensions, cloud services and other tools that connect to company accounts. It’s also helpful to maintain a list of approved programs so employees can easily check what’s allowed and when they need to ask permission.

Make it easy for employees to request new software or services. Before approving a tool, your IT team or designated administrator should review what information it can access, how it handles company data and who will be responsible for maintaining it. Your policy should also explain who handles software updates and make clear that employees aren’t allowed to turn off antivirus software or other required security protections.

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Give employees examples of tools that require approval, such as browser extensions that can read webpage content or AI meeting assistants that record and transcribe conversations. Even free tools can gain access to sensitive company information.

4. BYOD and remote work policies

Whether employees work from home, in the office or a combination of both, some may prefer to use their personal smartphones, laptops or tablets for work. If your business allows this, your AUP should explain which devices employees can use, what company information they can access and what security precautions they must take. These rules should also work alongside any separate bring-your-own-device (BYOD) or remote work policies your business has in place.

Ivan Kot, senior director of digital commerce at Itransition, emphasized the security concerns that come with allowing employees to use personal devices. “Employees often use their personal devices while accessing global and corporate networks through their private channels,” Kot said. “This raises cybersecurity risks dramatically and exposes corporate infrastructures to external intrusions. In this situation, acceptable use policies are the key documents stipulating acceptable and secure ways for employees to use corporate and personal resources for work-related purposes.”

When developing your BYOD and remote work rules, make sure you address the following:

  • Device security: Set minimum security requirements for personal devices used for work, including operating system updates, screen locks and other basic protections. Employees should know what’s required before connecting their devices to company systems.
  • Device monitoring and management: If your business uses device-management software, explain what it can see and control. Employees should also know whether you can remotely remove company information if their device is lost or they leave the business.
  • Personal and work data: Try to keep company apps and information separate from employees’ personal files and accounts. This helps protect business information without unnecessarily interfering with employees’ privacy.
  • Remote access: Your AUP should spell out how employees can access company systems when they’re working remotely. Depending on your business’s needs, you may require them to use an approved virtual private network (VPN) or another secure way to connect.
  • Account security: Require multifactor authentication (MFA) where available, and limit employees’ access to the information they need for their jobs. Make sure employees understand that even a secure connection can’t protect company data if their device has malware or someone steals their login credentials.
FYIDid you know

Your AUP doesn’t have to prohibit all personal use of company-issued devices. For example, you might allow employees to use weather apps and other approved, low-risk applications while restricting apps that could compromise company security.

5. Social media and internet usage guidelines

Your AUP should explain how employees can use social media and browse the internet during work hours. For example, you might allow occasional personal browsing while restricting activities that interfere with work or put company information at risk. Make it clear who’s authorized to post on behalf of your business and which employees need social media access as part of their jobs. You should also address inappropriate online behavior, such as harassing co-workers, impersonating the company or sharing confidential customer information without permission.

Be careful not to restrict employees’ legal rights when setting these rules. The National Labor Relations Board explains that employees may have the right to discuss pay, benefits and working conditions on social media, even if they aren’t union members. Have HR or legal counsel review your policy to make sure its restrictions don’t interfere with these protected activities.

6. Activity and usage monitoring

If your business monitors employee activity, your AUP should explain what you’re tracking and why. This includes which devices and systems are monitored, what information is collected and who can access it. Employees should also know how long monitoring records are kept and whom to contact if they have questions or concerns. Be specific about the tools you use, whether that’s remote monitoring and management (RMM) software for maintaining company devices, routine security logging or more direct employee monitoring, such as website activity tracking, screenshots or keystroke logging.

Make sure your actual monitoring practices match what’s outlined in your policy. Depending on applicable laws, you may need to notify employees or obtain their consent before monitoring begins. Having employees sign an AUP doesn’t automatically give your business the right to monitor everything they do.

7. Consequences

Employees should know what to expect if they violate your AUP. Depending on the seriousness of the violation, you might require additional training, issue a warning, restrict access to company systems or take disciplinary action, including termination. Your policy should also explain how you’ll look into possible violations and give employees a chance to tell their side of the story.

How you handle a violation should depend on what happened. For example, there’s a big difference between an employee who accidentally shares a confidential file and immediately reports it and one who knowingly steals company information. Take those differences into account when deciding what action to take, while following your company’s disciplinary procedures.

Did You Know?Did you know

The consequences outlined in your AUP should also be reflected in your disciplinary action policy so employees know what to expect.

8. AI usage policies

With employees increasingly using AI to write emails, summarize documents, analyze data and handle other everyday tasks, your AUP should set some ground rules. Employees need to know which tools they can use, what information they can share and where human oversight is necessary.

Here are some important AI issues to cover in your AUP:

  • Approved AI tools: Let employees know which AI programs they can use for work and whether they need to sign in with a company account. You should also explain how they can request approval for a new tool.
  • Sensitive information: Be clear about what employees can enter into AI tools. For example, customer records, personnel files, confidential business documents and sensitive company code should be off-limits unless you’ve specifically approved their use.
  • Data privacy: Before approving an AI tool, find out what happens to the information employees share with it. Does the provider save conversations or uploaded files? Can that information be used to train its AI models? Can the tool access other company applications? These are important questions to ask, even when a tool is free.
  • AI-generated work: Make sure employees understand that they’re responsible for checking AI-generated information before using it. Your policy should also explain when employees need to disclose that they’ve used AI to create content or complete a task.
  • AI agents: Some AI tools can do more than answer questions. They can search company files, send emails and even update business records on an employee’s behalf. In May 2026, the Cybersecurity and Infrastructure Security Agency and its partners warned against giving these tools too much independence or unrestricted access to sensitive information. Your AUP should establish what AI agents can access and do, which actions require human approval and who can shut them down if necessary.

McMahon emphasized the importance of setting boundaries for AI use. “Lay out rules for avoiding input of sensitive data into AI platforms, verifying AI-generated content and maintaining transparency when using AI-driven work products,” he said. “Clear guidelines ensure employees understand the risks and benefits of AI while safeguarding company information and reputation.”

9. Data governance and security

Your employees handle all kinds of business information, from customer records and financial documents to employee files and internal communications. Your AUP should explain how to protect that information, where it can be stored and what employees should do if something goes wrong.

“Require encryption for sensitive data in transit and at rest to prevent unauthorized access,” Rosseini advised. “Define data retention periods and secure disposal methods for physical and digital data to protect against unauthorized access.”

To put these security measures into practice, make sure your AUP covers the following:

  • Storing and sharing information: Explain where employees should save different types of company information and how they can share files securely. Make it clear that they shouldn’t transfer business records to personal email accounts or cloud storage services without permission.
  • Keeping and disposing of records: Explain how long employees should keep different types of business records and how to safely dispose of them when the time comes. Your company’s records-retention policy should spell out the details so employees aren’t left guessing about what to keep and what to delete.
  • Protecting accounts: As mentioned earlier, MFA is an important security measure, along with unique work credentials and an approved password manager. Your AUP should also prohibit password sharing and bypassing security controls, while giving employees a way to request exceptions when they have a legitimate reason.
  • Reporting security concerns: Tell employees whom to contact if they lose a work device, accidentally share a confidential file, notice a suspicious login or receive a possible phishing email. Give them another way to report problems if their work email isn’t available, and encourage them to speak up even when they’re unsure whether something is wrong. NIST also recommends training employees to recognize suspicious messages and verify unusual requests through trusted contact information.

How do you create your own acceptable use policy?

steps to create a use policy

There’s no single acceptable use policy that works for every business. Your AUP should reflect the technology your employees use, the information they handle and the security risks your company faces. You’ll also want to think about how the rules will affect employees’ day-to-day work and whether they’re practical to follow.

Once you have a good idea of what your policy needs to cover, follow these steps:

  • Start with an AUP template. You don’t have to create your policy from scratch. The SANS Institute offers information security policy templates that can help you get started. Just make sure the template is up to date, and customize it to reflect how your business actually operates.
  • Include the necessary rules and restrictions. Use the nine elements outlined above as a guide, covering everything from software installation and employee monitoring to AI use and data security. Your policy should also identify who’s responsible for keeping it updated, when it takes effect and how employees can request exceptions to the rules. Include a version number so you can keep track of changes.
  • Check your legal and industry requirements. Depending on your business, you may need to follow specific privacy, employment and data security rules. For example, HIPAA applies to certain healthcare organizations and their business associates, while the Payment Card Industry Data Security Standard (PCI DSS) establishes security requirements for organizations that handle payment card data. Businesses operating in or serving customers in certain international markets may also have obligations under the General Data Protection Regulation (GDPR). Have legal counsel help you determine which requirements apply rather than assuming a standard template covers everything.
  • Get input from employees and department leaders. Your IT, security, HR and legal teams can help make sure the policy addresses technical concerns, legal requirements and everyday workplace situations. McMahon recommended involving these departments in the drafting process. Rosseini also suggested working with employees to “increase buy-in and ensure [the AUP] addresses real-world scenarios. This can lead to better adherence and a clearer understanding of expectations.”
  • Ask for help when you need it. If you’re unsure where to begin or whether you’ve covered everything, consider getting advice from someone familiar with workplace technology policies. “You’re not the first person to create an AUP,” Dornbush explained. “So rather than build from scratch, ask an advisor, mentor, insurance provider or legal counsel for terms applicable to your industry.”

What are best practices for implementing and enforcing an AUP?

Writing an acceptable use policy is only the first step. You also need to make sure employees understand the rules, know where to find them and follow them in their everyday work. Here are some ways to make your AUP more effective:

  • Use plain language. Your employees shouldn’t need a background in IT or law to understand the rules. Keep technical jargon, legal terminology and acronyms to a minimum, and explain unfamiliar terms when you need to use them.
  • Train employees on the policy. Your team should understand how following the rules can help prevent data breaches and protect the business and its customers. Walk them through situations they might actually encounter, such as receiving an unexpected MFA notification or coming across a new AI tool they want to try. Additionally, show them how to report any security concerns and request approval for new software. Questions should be encouraged. 
  • Have employees acknowledge the AUP. Have employees confirm that they’ve received, read and understood the AUP, and make sure they can easily access the policy. This step should be part of the onboarding process for new employees and relevant contractors. You should also keep a record of which AUP version they acknowledged and when, along with any training they’ve completed. Remember that some monitoring practices may require separate notices or consent, and signing an AUP doesn’t mean employees give up their legal rights.
  • Test the policy before rolling it out. Ask a few employees or departments to review your AUP and let you know if anything is confusing or difficult to follow. “Before rollout, test the AUP with a few teams,” McMahon said. “Their feedback can help identify confusing language or gaps, making the final version clearer and more actionable.”
  • Keep the rules fresh in employees’ minds. Don’t let your AUP become another document that employees sign and forget. Bring up important rules during team meetings, share occasional reminders and consider short quizzes to reinforce what employees have learned. If someone struggles with a particular topic, offer additional training. You might even recognize employees who demonstrate a strong understanding of the policy.
  • Check that employees are following the rules. Periodically review access permissions, security logs and other relevant information to spot potential problems. If something looks suspicious, investigate before assuming an employee has broken the rules. Make sure any monitoring stays within the privacy limits established in your AUP.
  • Review and update your AUP regularly. Set aside time at least once a year to review your policy and make changes as needed. You may also need to update it sooner if your business adopts new technology, changes how employees work or faces new legal requirements.
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Make sure employees know where to find the latest version of your AUP. Consider keeping it in a shared employee handbook or company intranet so everyone can easily check the rules when questions come up.

What privacy concerns exist with an acceptable use policy?

privacy concerns graphic

User activity monitoring software can help you enforce your AUP, but how much monitoring is too much? Employees may understandably be uncomfortable with software that tracks their every move, particularly when they’re using personal devices for work.

“Individual privacy and freedom remains one of the most disputable issues of AUP,” Kot explained. “Some companies choose to monitor their employees’ devices 24/7 without leaving a chance for private use. Others prefer to determine each and every way employees should perform their work, which deprives employees of any flexibility in their actions.”

When deciding how to monitor employees, keep these considerations in mind:

  • Don’t monitor more than necessary. The best employee monitoring software offers features ranging from website tracking to screenshots and keystroke logging. However, just because you can collect certain information doesn’t mean you should. Choose monitoring features that address specific business concerns and consider whether less intrusive options would work just as well.
  • Be upfront with employees. Explain what you’re monitoring, when monitoring takes place and whether it extends to personal devices used for work. Employees should also know who can see the information collected. If monitoring software flags suspicious activity, investigate the circumstances before assuming someone has violated your AUP.
  • Understand your legal obligations. Employee monitoring laws vary depending on where your employees work and what you’re tracking. For example, New York law requires covered private employers that monitor certain electronic communications to provide written notice when employees are hired, obtain an acknowledgment and post a visible notice, subject to exceptions. Have legal counsel review your monitoring practices to make sure you’re meeting applicable requirements.

Ultimately, your goal should be to protect your business without making employees feel that every action is being scrutinized. Kot encourages business owners to “opt for a reasonable AUP while staying away from hyper-control and setting unnecessary boundaries in employees’ daily work.”

Acceptable use policy FAQs

An acceptable use policy (AUP) explains how employees and other authorized users can use a company’s computers, networks, software and information. It outlines what’s allowed, what’s prohibited and what employees should do if they encounter a security problem. It should also explain any employee monitoring practices and what happens if someone violates the rules.

An AUP helps employees understand what’s expected of them when using company technology, reducing the risk of security breaches, inappropriate use and other workplace problems. It can also help businesses protect sensitive information, maintain productivity and meet applicable security requirements. While an AUP can’t prevent every problem or eliminate legal liability, it gives employees clear guidelines to follow and businesses a way to address violations.

Terms of use, sometimes called terms of service, establish the rules and conditions for using a company’s website, software or online services. An AUP focuses more specifically on what users are and aren’t allowed to do when accessing those services or other technology resources. An AUP may be included in a company’s terms of use, but businesses can also have separate AUPs that apply to employees and contractors.

Businesses enforce AUPs by training employees on the rules, having them acknowledge the policy and addressing violations when they occur. Some companies also use monitoring software and other security tools to identify potential problems, although monitoring must comply with applicable laws. Consequences can range from additional training or a warning to termination, depending on the seriousness of the violation and the circumstances involved.

Max Freedman and Jennifer Dublino contributed to this article. Source interviews were conducted for a previous version of this article.

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Written by: Andrew Martins, Senior Analyst
Andrew Martins is an award-winning expert in business and economics, known for his meticulous analysis of industry trends and his deep understanding of small business dynamics. With years of hands-on experience and on-the-ground reporting, Martins has crafted invaluable guides about essential topics in small business technology and finance. At business.com, Martins covers tech concepts like big data, acceptable use and keystroke logging, along with finance subjects like tax audits and business credit cards. In recent years, Martins has turned his attention to examining the impact of major events such as the 2020 presidential election and the COVID-19 pandemic on small businesses. Armed with a bachelor's degree in communication, his work has been featured on respected financial platforms like Investopedia, The Balance and LowerMyBills, as well as technology outlet Lifewire, and the pages of the New York Daily News.