diff --git a/README.md b/README.md
index 8ba43f0..a1f08c5 100644
--- a/README.md
+++ b/README.md
@@ -79,6 +79,9 @@ This is what the spec says:
                 updateStyle();
                 updateLayout();
             }
+            if (updatedLayout) {
+              scheduleAsyncHoverUpdate();
+            }
             paint();
         }
     }
@@ -142,6 +145,14 @@ of the event loop. If a discrete event is received, all continuous events
 in the task queue should run immediately to prevent the discrete event
 from being delayed.
 
+## Asynchronously Update Hover State
+
+After a layout has occurred the user agent will update the hover state of the
+current node since during a layout the position may have shifted from the
+previous hover state. If the hover state changes the CSS hover rule will
+be updated as well mouseout, mouseleave, mouseenter, mouseover will be
+dispatched to the relevant nodes.
+
 ## What really happens
 
 We've built a [test page]( https://rawgit.com/atotic/event-loop/master/shell.html). The page simultaneously generates (listed in order):