Learn about California employee handbook requirements and optional California employee handbook policies, then find out how we take the work out of compliance.
Building an employee handbook is a great way to introduce your new hires to the company, set forth your company policies, and provide structure for existing employees. While companies aren’t required to create a handbook, employers are required to notify their employees of certain rights. Most employers choose to do this in state-specific employee handbooks. Here’s an example for California employee handbook requirements.
Employee handbooks are a smart way to protect your company: they ensure that your employees are notified of all applicable rights, obligations and company policies. If problems arise, you’ll have documentation of your compliance.
When you’re hiring employees in California, your employee handbook should cover all notable state and federal policies. You may also want to include non-required policies that will protect your company. The problem? California has up to 24 unique state and federal policies that should be included. Plus, state and federal laws change all the time, so you’ll need to stay on top of new laws and regulations.
“California has the added complexity of having many cities passing their own leave laws and having their own required policies; eight cities in California have their own paid sick leave laws and policies,” said Connor Christensen, Legal Product Counsel at SixFifty. “It’s crucial for employers to ensure their handbooks reflect these unique state- and city-specific requirements to maintain compliance and protect both their organization and its employees.”
Hiring remotely means that you can gather top talent from all 50 states—but who has the time to research, create, and update employee handbooks every time you hire from a new state?
SixFifty has solutions. Read on to learn about required and optional California employee handbook policies, then find out how we take the work out of compliance.
Why California Employee Handbooks Are More Complex Than Other States
Most states ask employers to layer a handful of state-specific policies on top of federal requirements. California adds a third layer on top of that: a dense, fast-moving body of state labor code provisions, plus city and county ordinances that frequently go further than state law. That combination is why a California section can’t be treated the same way as, say, a Texas or Florida addendum.
State vs. local employment laws
California state law sets the floor, not the ceiling. Several cities and counties, including Los Angeles, San Francisco, San Diego, Berkeley, and Emeryville, have their own ordinances covering paid sick leave, minimum wage, and background check procedures that exceed the state minimum. Because SB 616 (California’s 2024 paid sick leave expansion) preempts local ordinances that fall below the new state floor but leaves more generous local rules intact, an employer with locations in multiple California cities may be complying with state law and still be out of compliance with a local one.
Hiring and background checks are a good example of how this plays out. California’s statewide Fair Chance Act applies to employers with five or more employees and bars questions about conviction history until after a conditional job offer. Los Angeles and San Francisco layer their own Fair Chance Ordinances on top of that, adding requirements like specific job-posting language and additional notice steps that the state law doesn’t require. An employer relying only on the state-level policy language would miss those city-specific obligations.
Frequent California employment law changes
California’s legislature passes new employment-related bills nearly every session, most taking effect January 1 of the following year. Recent examples include SB 616 (raising the paid sick leave minimum to 40 hours or five days annually, effective January 1, 2024), SB 553 (requiring most employers to adopt a written workplace violence prevention plan by July 1, 2024), and SB 1162 (requiring employers with 15 or more employees to disclose pay scales in job postings, effective January 1, 2023). A handbook drafted even a year or two ago is likely missing at least one of these.
Challenges for multi-state employers
Employers with workers in California and other states can’t simply apply their most protective policy company-wide, because some California requirements don’t have an equivalent to be “more protective” than. Daily overtime after eight hours in a workday is a good example: most states only require overtime after 40 hours in a week, so there’s no comparable rule elsewhere to extend. The practical result is that California usually needs its own addendum rather than a single blended policy.
Considerations for remote employees working in California
California employment law follows the employee’s physical work location, not the company’s headquarters. A remote employee working from California is entitled to the same meal and rest break rules, expense reimbursement, and paid sick leave as an employee working from a California office. This also affects hiring: SB 1162’s pay scale disclosure requirement applies to job postings for remote roles that could be filled by a California resident, even if the company is based elsewhere.
Required Federal Employee Handbook Policies
Federal law supersedes state law. No matter where you’re doing business, federal employee handbook policies must be included. These cover some of the most critical worker rights, including anti-discrimination laws, different types of leave, and how the company will handle sexual harassment.
“California doesn’t require employers to have an employee handbook, but if you choose to have a handbook for your California employees, there are some policies that have to be included to comply with state law,” said Christensen.
The required federal employee handbook policies are the same across all 50 states, so you’ll need to include them in every version of your employee handbook. When there’s a change to the law, each state handbook needs to be updated appropriately.
Each of the following policies must be included in your employee handbook:
- Americans with Disabilities Act (ADA) (15+ Employees)
- Employment and Anti-Discrimination Policy
- Family Medical Leave Act (FMLA) Policy (50 Employees)
- Jury Duty Leave
- Military Service Leave
- Sexual Harassment Policy
- Lactation Accommodation Policy
- Religious Accommodations Policy
Required California Employee Handbook Policies (Updated February 2026)
California offers additional protections to its employees, including paid sick leave, crime victim and domestic violence leave, voting leave and more. These protections make it easier for California employees to take time off work without risking their employment status.
Note that there are also state policies governing health and safety, meal and rest breaks, and outside employment. These policies go further than federal law, and may require you to make adjustments to your overall company policies.
Finally, take note that the paid sick leave policies are unique for Berkeley, Emeryville, Los Angeles, Oakland, San Diego, San Francisco, and Santa Monica: if you hire employees in those locations, be prepared to create different policies based on those requirements.
“Employers should pay special attention if they have employees in San Francisco,” said Christensen. “Employers with 20 or more employees worldwide must include a San Francisco Family Friendly Workplace policy and Paid Parental Leave policy in their employee handbook. Employers with 100 or more employees worldwide must also include a San Francisco Public Health Emergency leave policy in their handbook.”
Here are California’s required policies:
- Adult Illiteracy Leave (25 Employees) (see SixFifty’s School Activity Leave)
- Alcohol and Drug Rehabilitation Leave (25 Employees) (see SixFifty’s School Activity Leave)
- Bereavement Leave (5 Employees)
- Business Expense Reimbursement
- Civil Service and Air Patrol Leave
- Crime Victim Leave
- Domestic Violence Leave (25 Employees)
- Equal Employment Opportunity
- Family and Medical Leave (5 Employees)
- Health and Safety Policy
- Home Office Reimbursement (if remote work is encouraged or required)
- Jury Duty Leave
- Lactation Accommodation
- Meal and Rest Breaks
- Military Service Leave (also San Francisco)
- Organ, Bone Marrow, and Blood Donor Leave (15 Employees)
- Overtime Policy
- Paid Sick Leave (including separate policies for Berkeley, Emeryville, Los Angeles, Oakland, San Diego, San Francisco, Santa Monica, and West Hollywood)
- Paid Time Off
- Pay Transparency Policy
- Pregnancy Leave (5 Employees)
- School Activity Leave (25 Employees)
- School Appearance Leave
- Sexual Harassment
- Suitable Seating (see Sixfifty’s Meal and Rest Breaks Policy)
- Voting Leave
- Whistleblower
- Witness Duty Leave
- Workweek and Work Schedules Policy (Day of Rest Law)
- San Francisco Paid Parental Leave (20 employees worldwide)
- San Francisco Family Friendly Workplace (20 employees worldwide)
- San Francisco Public Health Emergency (100 employees worldwide)
Optional California Employee Handbook Policies
But wait—there’s more! In addition to the required state and federal policies, there are 46 optional policies you can add to your employee handbook. While not all of these will apply to every company, they can provide structure for employees and protect your business.
For instance, most companies will have a payment, holiday, and dress code policy—but you can also include policies that apply to your specific type of work. Transportation companies may wish to add policies about drugs, alcohol, and using electronic devices while driving. Tech companies may want to add policies about how employees can use company property, confidentiality and non-disclosure agreements, and telecommuting policies.
After your required state and federal policies, you’re invited to add the following:
- Affinity Group Policy
- Anti-Bribery and Anti-Corruption Policy
- Arbitration Policy
- At-Will Employment Policy
- Background Check Policy
- COBRA Policy
- Cell Phone Policy
- Code of Conduct Policy
- Company Property Policy
- Confidentiality and Trade Secrets Policy
- Desk Hoteling Policy
- Direct Deposit Policy
- Dress Code Policy
- Drug and Alcohol Abuse Policy
- Electronic Devices While Driving Policy
- Employee Benefits Policy
- Employee Classification Policy
- Employee Dating Policy
- Employee References Policy
- Employment of Relatives Policy
- Exit Interview Policy
- Gifts Policy
- Health and Safety Policy
- Home Office Reimbursement Policy
- Job Duties Policy
- Key or Access Card Policy
- Holidays
- Immigration Law Compliance
- Cannabis Policy
- Off-Duty Use of Facilities
- Outside Employment
- Overtime Policy
- Paid Time Off
- Payment of Wages Policy
- Payroll Deductions Policy
- Performance Review Policy
- Personnel Files Policy
- Pets in the Workplace Policy
- Progressive Discipline Policy
- Public Relations Policy
- Punctuality and Attendance Policy
- Record Retention Policy
- Remote Working Policy
- Salary Pay Policy
- Smoking Policy
- Social Media Policy
- Solicitation and Distribution of Literature Policy
- Technology Systems Policy
- Temporary Relocation Policy
- Timekeeping Policy
- Video Conferencing Policy
- Weapons in the Workplace
- Workers’ Compensation Policy
- Workplace Violence Policy
- Workplace Visitor Policy
- Require State Policies cont.
A few additional policies worth considering
- Remote work policies: Clarify which employees are covered by California-specific rules based on physical work location, equipment and expense expectations, and how work hours and breaks are tracked for remote staff.
- Expense reimbursement policies: California Labor Code Section 2802 requires employers to reimburse employees for necessary expenses incurred in doing their jobs. For remote employees, this commonly extends to a reasonable share of home internet, phone, and other equipment costs, and is worth spelling out explicitly rather than leaving to case-by-case judgment.
- AI & workplace technology policies: as more companies use AI tools for tasks like screening resumes, monitoring productivity, or supporting customer service, a short policy explaining what tools are used, what data they touch, and how employees should (and shouldn’t) use AI tools themselves heads off confusion before it becomes a dispute.
- Social media policies: a policy covering personal social media use, confidentiality, and how it relates to workplace conduct, drafted carefully so it doesn’t run afoul of employees’ protected rights to discuss wages and working conditions.
California Employee Handbook Compliance Checklist
Use this as a working checklist before publishing or re-issuing a handbook:
Required policies included
Every federal- and state-mandated policy is present, and any employee-count-triggered requirements (sexual harassment training, workplace violence prevention plan, pay transparency, and similar) have been checked against your actual current headcount.
Local ordinances reviewed
Every city or county where you have employees—including remote employees—has been checked for local requirements that go beyond the state minimum.
Remote employee policies included
Remote employees working from California are covered by the same California-specific policies as in-office employees, including meal and rest breaks, expense reimbursement, and paid sick leave.
Employee acknowledgement process completed
Every current employee has a signed, dated acknowledgment on file, and there’s a process in place to collect new acknowledgments after material policy changes.
Annual handbook review scheduled
A recurring review is on the calendar at least once a year, with a plan to revisit the handbook sooner if a significant new law is enacted mid-year.
What are the Penalties for Non-Compliance with California Handbook Requirements?
Noncompliance with California employment policies can lead to significant penalties, including administrative fines, lawsuits, backpay, damages for lost wages, emotional distress, and attorneys’ fees. Violations may trigger investigations by state agencies, such as the California Labor Commissioner or the Department of Fair Employment and Housing (DFEH), and result in claims under the Private Attorneys General Act (PAGA) or class actions.
Specific risks include civil penalties for failing to provide required leaves (e.g., bereavement, sick leave, CFRA), reimbursements (e.g., business expenses, home office costs), and accommodations (e.g., lactation, meal/rest breaks). Retaliation or discrimination claims often carry additional punitive damages. Employers must implement compliant HR policies and seek legal guidance to avoid costly repercussions and protect their workforce.
How to Create a California Employee Handbook
1. Start with required California policies
Begin with the policies California law actually requires, not the full list of things a handbook could include. That means the required federal and state policies covered earlier in this guide, plus any threshold-triggered requirements that apply based on your headcount—for example, sexual harassment prevention training applies once an employer reaches five employees, while the workplace violence prevention plan requirement generally applies at ten. Getting these employee-count thresholds right matters more than it might seem, since they vary policy by policy and are one of the most common sources of handbook errors.
2. Add company-specific policies
Once the required policies are in place, layer in policies that reflect how your company actually operates: dress code, remote work expectations, PTO and vacation accrual, code of conduct, technology and social media use, an at-will employment disclaimer, and a probationary period policy if you use one. These aren’t legally mandated, but they reduce ambiguity and give you something concrete to point to if a dispute arises.
3. Review for state and local compliance
Before finalizing a draft, cross-check every policy against the specific cities and counties where your employees—including remote employees—actually work, not just against state law. Confirm that any employee-count thresholds in the handbook match your actual headcount, and revisit any local ordinance that might set a higher bar than the state minimum on sick leave, minimum wage, or background checks.
4. Distribute and acknowledge the handbook
Distribute the handbook to every employee, whether through a physical copy, an internal HR portal, or e-signature software, and obtain a signed acknowledgment confirming receipt and understanding. Keep signed acknowledgments on file for the duration of employment and beyond, and route the handbook back out for re-acknowledgment whenever you make a material policy change rather than waiting for the next annual cycle.
California Employee Handbook Builder vs. Manual Handbook Creation
Once the required content is mapped out, the remaining decision is how to build and maintain the handbook itself. Each approach below comes with a different tradeoff between cost, customization, and how well it keeps up as the law changes.
Using free templates
Free templates are the fastest way to get a document in hand, and for a very small, single-location business they can be a reasonable starting point. The tradeoff is that generic templates are written to cover many jurisdictions at once, so they tend to miss California-specific thresholds and don’t account for the local ordinances discussed above. They also don’t update themselves when the law changes, so a template that was accurate on the day it was downloaded can go stale within months.
Working with an employment attorney
An employment attorney can tailor a handbook to your specific business, industry, and risk profile, and the work product carries the benefit of legal judgment applied to your particular facts. The tradeoffs are cost and turnaround time, and unless you have an ongoing relationship with counsel, an attorney-drafted handbook still needs a human to notice when a new law requires an update.
Using employee handbook software
Purpose-built handbook software bakes California’s employee-count thresholds and local-ordinance logic into the generation process, and typically flags or applies updates automatically as the underlying law changes. Tools like SixFifty’s employee handbook builder are built around this problem specifically, combining attorney-drafted policy language with automated state and local logic. It’s still worth having an attorney review any company-specific policies layered on top, but the baseline compliance work is handled for you.
Which option is best for multi-state employers?
For a single-location California business, a template plus a one-time attorney review may be enough. For employers with locations or remote employees in multiple states, though, manually tracking every state and local update quickly becomes unmanageable—see our guide to building a multi-state employee handbook for more on that specific challenge. In practice, most multi-state employers land on a hybrid: software to handle the jurisdiction-specific logic at scale, with attorney review reserved for company-specific or higher-risk policies.
How Often Should You Refresh Your Employee Handbook?
Regularly updating your California employee handbook is essential to ensure it remains compliant with evolving laws—and accurately reflects your company’s current policies and procedures. At a minimum, it’s advisable to review and update your handbook annually. However, certain circumstances may necessitate more frequent revisions:
- Legal changes: Employment laws, especially in states like California, are subject to frequent updates. Staying informed about new legislation and promptly incorporating necessary changes into your handbook is vital.
- Company policy updates: Significant changes within your organization, such as the introduction of new benefits, alterations in workplace procedures, or shifts in company culture, should be reflected in the handbook to ensure consistency and clarity.
- Industry-specific regulations: If your industry is subject to specific regulations that undergo periodic changes, it’s crucial to update your handbook accordingly to maintain compliance.
By proactively refreshing your employee handbook, you uphold legal compliance and also demonstrate a commitment to transparency and effective communication within your organization. This practice fosters trust and sets clear expectations, contributing to a positive workplace environment.
Employment law changes that trigger handbook updates
Not every legal change requires an immediate handbook rewrite, but these categories consistently do:
- Paid sick leave: SB 616 raised the statewide minimum from 24 hours (3 days) to 40 hours (5 days) per year, effective January 1, 2024, and increased the accrual cap to 80 hours (10 days).
- Pay transparency: SB 1162 requires employers with 15 or more employees to include pay scales in job postings, effective since January 1, 2023.
- Remote work: A shift in where your workforce is physically located changes which state and local rules apply, even if nothing in California law itself has changed.
- Leave laws: Examples include AB 2499 (2024), which expanded paid sick leave and job protections for crime victims and their family members, and SB 553 (2024), which requires most employers to implement a written workplace violence prevention plan.
- Local ordinances: Cities and counties update their own minimum wage, sick leave, and fair chance ordinances on their own schedules, independent of the state legislative calendar, so a handbook can fall out of local compliance even when nothing at the state level has changed.
SixFifty Can Help
Researching, adding, and updating these California policies can be onerous—which is why SixFifty’s employee handbook creator makes it easy and automatic. Our proprietary legal technology pairs AI with real legal expertise, so you can automatically generate and update California employee handbooks. Save time and billable hours—just answer a few questions about your company, download the generated handbook, and get automated legal updates as the law changes.
Want to see how it works? Schedule a free demo with SixFifty today! And if you’re looking to create an employee handbook for a different state, make sure to check out our interactive map for required employee handbook policies by state.
