Business and Emploment Law – When Employee Handbooks Become Binding

Massachusetts business and employment lawyers are often asked by businesses to review (or in some instances) to help create employee handbooks. Employee handbooks under Massachusetts law hold a unique place. They are not contractual in nature but, at times, and in certain contexts can become contractually enforceable. Enforceability of handbooks against the business employer has taken on even greater significance in light of the recent economic downturn and the numerous changes that businesses are forced to make with respect to employment policy. In one case, just decided by the Massachusetts Supreme Judicial Court, LeMaitre v. Massachusetts Turnpike Authority, a handbook was indeed, found to be binding upon the employer. Specifically, the case dealt with a Massachusetts Turnpike Authority handbook published in the 1970s in which employees were promised that a portion of unused sick time dollar value would go toward health insurance premiums following retirement. In 1996 the Turnpike Authority made substantial changes which were detrimental to employees who had banked substantial sick time. The Plaintiff had accumulated 403 unused sick days and expected to be rewarded in accordance with the original handbook.

While the court did not enforce the sick leave program for the period subsequent to 1996 it did say that an employee who relied on the program prior to 1996 and had banked sick days to receive a benefit had every right to expect the fruits of that benefit.

One important feature of this case which is often not present in Massachusetts employee handbook cases was that the employee actually gave up something in order to gain a benefit. As well, most benefits are not applied retroactively. Health care payments for instance are paid current and, if the health care benefit is changed, it is usually accompanied by a change in the handbook and the new policy is then put in place prospectively.

Nonetheless, the LeMaitre decision illustrates the importance of having your employee handbook reviewed and doing so every few years to keep up with changes in the law and adjustments to internal policy.

If your company is in need of an employment lawyer to review its employee handbook, the business lawyers at Parker Scheer, who are knowledgeable in this area of law will be happy to assist you. Please call Barry S. Scheer at 866-414-0400.

Contact Parker|Scheer Employment Law Attorneys

For more information on Massachusetts employment law or if you are seeking an employment law attorney or a business lawyer for any other needs, please contact Barry Scheer. If you prefer, you can also telephone our offices in Boston seven days a week at toll free 866-414-0400.

back to top