We’ve been running into a surprising (and concerning) trend: employers with no employee handbook at all — or one so outdated it’s practically a museum piece. The most common gaps? Clear policies on Leave of Absence (LOA) and how employee benefit premiums are handled during that leave.
These aren’t “nice-to-have” sections. They’re critical for compliance, cost control, and employee trust. Let’s break down why.
1. Laws Change — Your Handbook Should Too
Federal, state, and local leave laws are constantly evolving. If your handbook hasn’t been reviewed in the last year or two, it may not align with:
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FMLA requirements
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State-specific leave laws (medical, family, paid sick leave)
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Industry-specific compliance standards
An outdated policy doesn’t just confuse employees — it can put your company at risk of penalties or lawsuits.
2. Premium Handling Is Not Optional
When an employee goes on LOA, what happens to their health insurance premiums? Federal law (like FMLA) requires that benefits continue on the same terms as when the employee was working.
If your handbook doesn’t clearly explain:
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How premiums are paid during leave
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The deadlines for submitting payments
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What happens if payments are late
…you’re opening the door to costly mistakes and angry phone calls.
3. Without Clear Policies, Everyone Loses
No handbook or outdated policies mean:
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Employees don’t know their rights or responsibilities
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HR handles situations inconsistently (a legal red flag)
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Premiums go unpaid or coverage lapses unintentionally
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Administrative headaches multiply when employees return from leave
4. The Fix Is Simple
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Review your handbook annually
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Update LOA policies to reflect current laws
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Clearly outline premium payment responsibilities during leave
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Ensure your policies match your insurance carrier’s rules
Bottom line:
Your handbook isn’t just an HR formality — it’s your compliance shield. If it’s outdated, you’re not only risking lawsuits, you’re eroding employee trust. The good news? Updating it is easier than dealing with a Department of Labor investigation.
Need help making sure your handbook is clear, compliant, and current? Let’s talk.
