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 a 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.
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 2025)
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.
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 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.
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.
