DISCLAIMER: This post provides general information about employee handbooks. It is not legal advice. If you require information or advice applied to your unique situation, please make an appointment to discuss it with an attorney in each jurisdiction where you have employees.
Artificial intelligence (AI) has revolutionized many aspects of business operations, from customer service to data analysis. However, when it comes to crafting essential documents like employee handbooks, relying solely on AI-generated content without legal review can lead to significant risks and liabilities for employers, especially those that have employees in different jurisdictions. Here’s why it’s crucial for employers to have their employee handbooks reviewed by employment attorneys in each jurisdiction where they have employees or workers who could the courts could deem employees (e.g., freelancers, independent contractors, employees of Professional Employer Organizations).
Worker Misclassification
An employment attorney can help you spot workers who have been misclassified as independent contractors when they should be employees. This will help you avoid uninsured workers compensation (WC) claims and penalties for not securing mandatory disability, WC, and unemployment insurance. An uninsured WC claim can cost hundreds of thousands of dollars in medical expenses and lost wages. Penalties for not having WC insurance accumulate at a rate of $2,000.00 for every 10-day period of non-compliance.
Conflicts in Laws
Employment laws vary significantly from one jurisdiction to another, encompassing everything from anti-discrimination regulations to sick and family leave policies and termination procedures. Because AI is only predicting the sequence of words necessary to create an employee handbook, it might overlook critical distinctions between federal, state, and local laws. It might also miss updates that occur after Open AI declared its training data set complete.
I asked the free ChatGPT-3.5 bot when its training data set was last updated. It responded:
My training data includes information up until January 2022.
A November 2023 article indicates an update is coming, but it will only contain data through April 2023. Conversely, employment attorneys are required to stay up to date on relevant laws and regulations. When you hire an attorney to create your employee handbook, you reduce your risk of outdated or inapplicable provisions.
Vague Language in Employee Handbooks
Employee handbooks outline employee rights and responsibilities, as well as company policies. In New York, many of these policies are mandatory. If they are not included in the employee handbook or posted electronically, employers are not in compliance. Additionally, vague language or contradictory statements in a handbook could be interpreted unfavorably in court. An employment attorney can help draft clear and concise policies that:
- Meet legal requirements
- Inform employees and their supervisors
- Minimize disputes and misunderstandings
Complex Legal Issues for Employee Handbooks
Employee handbooks may need to address complex legal issues such as intellectual property rights, non-competition, and confidentiality. Without legal guidance, employers may inadvertently include provisions that are unenforceable or infringe upon employee rights.
Customization for Your Employee Handbook
AI can generate generic templates for employee handbooks, but they often lack the customization necessary to reflect the unique needs and culture of a company. As a holistic law and mediation firm, we can tailor your handbook to align your values and goals with:
- Industry practices in your jurisdiction(s)
- Your brand and preferences
- Employee expectations
A Note About This Post
Inspired by a social media post about the below request, I asked ChatGPT-3.5 to draft an employee handbook for a New York employer.
Chat GPT-3.5 gave me a good outline. It is like having a highly efficient assistant who makes a lot of errors. The handbook would still need a lot of editing, but it’s not a bad place to start.
Next, I asked it to write this blog post. Often wordy and unclear, I could only use it as an outline. Again, this wasn’t completely ineffective, but I certainly wouldn’t trust it to write a complete post. You can use AI to get you started, but we recommend you still have a human lawyer review your legal documents and help you navigate legal issues.