By Jake Hoffman, intern, under the supervision of Stephanie Messas, Messas Law Practice, PLLC
Employee handbooks serve as important reference documents that communicate an employer’s policies and procedures to employees, while also providing information about applicable workplace rights and obligations. However, these handbooks typically do not create contractual obligations, though courts in some jurisdictions may find certain provisions to be binding under specific circumstances. The efficacy of these handbooks is limited when they become outdated and are no longer compliant with current employment law. These inaccurate statements of laws and regulations expose the organization to the risk of legal consequences. Because employment law is constantly changing, employee handbooks can rapidly become outdated if they are not properly maintained and updated, posing a challenge for employers.
Employment regulatory changes come into effect numerous times throughout the year, both at the state and federal levels. Even so, many organizations may not review their employee handbooks frequently enough to maintain compliance with rapidly changing employment laws and regulations. 53% of organizations report that they review their employee handbook for compliance only once a year, 9% review it even more infrequently, and a further 19% review it only sporadically, with no pattern.[1] As a result, employers may fail to include updated employment law in their handbooks for a period until they are updated.
This failure can lead to drastic consequences for the organization. According to recent industry studies, 12% of organizations reported that an error in the employee handbook had caused monetary consequences, including legal fees, settlements, or fines, due to handbook compliance issues. These errors included, for example, vague or incorrect information regarding benefits/insurances, miscommunications regarding compensation, unclear expense reimbursement policies, non-compliant federal or state law policies, and even syntax or spelling errors.[2]
How can these issues be avoided? Keeping up to date with current and upcoming relevant state and federal employment law changes. By maintaining an up-to-date employee handbook as these changes occur, the financial and legal interests of your organization will be protected. The Messas Law Practice can assist organizations in reviewing and updating their employee handbooks. Contact our firm for more information about our services.
This article is for informational purposes only and does not constitute legal advice.
[1] Data sourced from Brightmine, Employee Handbooks 2025: Survey Report, https://hrcenter.us.brightmine.com/benchmarking-and-surveys/employee-handbooks-2025-survey-report/54324/?c=3756.
[2] Data sourced from Brightmine, Employee Handbooks 2024: Survey Report, https://hrcenter.us.brightmine.com/benchmarking-and-surveys/employee-handbooks-2024-survey-report/53401/?_gl=1*11jgyuz*_gcl_au*MTczNzk5NTY0MS4xNzU2OTEwNzY2*FPAU*MTczNzk5NTY0MS4xNzU2OTEwNzY2.