If you’re a California employer, your employee handbook should evolve alongside the laws and practices that govern your workplace. While 2026 did not introduce sweeping changes to handbook requirements, it is an ideal time to confirm your policies are current, consistent, and not missing updates from 2024 or 2025.
Many businesses assume their handbook is “up to date” because it was reviewed a few years ago. In reality, small legal changes compound quickly, and even well-intentioned employers can end up with policies that no longer match current law or actual workplace practices. A thoughtful 2026 handbook review helps close those gaps and reduce unnecessary risk.
Why Should Employers Update Their Employee Handbooks for 2026?
Employee handbooks set expectations for how work is performed, how issues are handled, and how decisions are made. A review ensures your policies reflect current law, modern work arrangements, and how your business actually operates today.
California’s employment laws change often, and many updates in recent years affected protected leaves, discrimination, accommodations, paid sick leave, and enforcement standards. Handbooks that have not been reviewed since 2023 often contain language that no longer aligns with those requirements. That disconnect can lead to inconsistent practices, such as managers handling leave requests differently or employees receiving conflicting information.
A tailored handbook should reflect how your business really works, not a generic “one size fits all” model. We once helped a client who asked us to review a handbook they’d received from their insurance provider. It was nearly 90 pages long and full of policies that didn’t fit their 30-employee California business. Several sections—like leaves of absence, sick leave, and expense reimbursement—needed major edits to comply with state law and match their actual practices.
What Laws and Trends Affect California Workplace Policies?
Several California-specific laws affect handbook requirements. California employers should pay close attention to:
Remote and Hybrid Work: Labor Code § 2802 requires employers to reimburse necessary business expenses, which may include internet, phone, or home office costs. Remote employees also remain covered by California’s timekeeping and meal/rest break rules. Policies should outline expectations for communication, security, and equipment use.
Leave and Accommodation Updates: California continues to refine guidance around family leave, disability accommodation, and religious accommodation under the Fair Employment and Housing Act (FEHA). Employers should confirm eligibility criteria, documentation requirements, and procedures align with current law.
Anti-Harassment, DEI, and Training: FEHA mandates zero-tolerance for discrimination and harassment. Policies should clearly explain how employees can report concerns, how investigations are handled, and what training is required for supervisors and staff.
Each of these changes should be reflected in your 2026 California employee handbook policies to keep your business compliant, consistent, and aligned with how you actually operate.
Which 7 Policies Should be Closely Reviewed for Compliance in a 2026 California Handbook?
1. Leave of Absence Policy
Define who qualifies for leave, how it’s approved, and what documentation is required. Cover PTO, sick leave, and family or medical leave. Many lawsuits stem from inconsistent or unclear leave rules, so this section should be detailed and accurate.
2. Paid Leave and PTO Policies
Employers should clearly state whether they offer paid sick leave, paid vacation, or a combined PTO policy. Policies should address accrual methods, maximum balances, carryover rules, and usage guidelines. Clarity is crucial so that paid leave can be administered in accordance with law.
3. Wage and Hour Compliance Policy
Clarify timekeeping expectations, meal and rest breaks, overtime eligibility, and how exempt versus non-exempt status works. California’s wage rules are complex; this section helps you show compliance and maintain fairness across your team.
4. Remote and Hybrid Work Policy
Address who can work remotely, how hours are tracked, how equipment is provided, and how confidential information is protected. Hybrid and remote setups blur lines—this section should eliminate confusion about expectations, communication, and availability.
5. DEI, Anti-Harassment, and Accommodation Policy
Every California employer must have a zero-tolerance statement on harassment and discrimination. Include how employees can report concerns, how investigations are handled, and how accommodations are reviewed for disability, lactation, and religious needs.
6. Social Media and Information Protection Policy
Clarify what’s appropriate for employees to share online, how they should handle company information, and how to protect privacy for clients and coworkers. Include clear data-protection and confidentiality expectations, especially for remote workers.
7. Expense Reimbursement and Business Expense Policies
California law requires reimbursement for necessary business expenses. Policies should explain what expenses are covered, how reimbursement requests are submitted, and applicable timelines. This is especially important for remote and hybrid teams.
How Can Remote and Hybrid Work Policies Protect Employers?
Remote work is here to stay, and without clear boundaries, it creates risk. A written policy ensures fairness, consistency, and compliance.
A strong remote policy outlines expectations for communication, attendance, and security. It should cover how equipment is used, what costs are reimbursable, and how employees must protect confidential information. Defining when remote work is allowed (and when it’s not) helps avoid claims of unequal treatment or misunderstandings about work hours.
How Do Updated Handbooks Reduce Legal Risk?
Even small inconsistencies between written policies and actual practices can create exposure. An updated handbook helps ensure managers are following the same rules, employees receive consistent information, and your business can demonstrate good-faith compliance if issues arise.
Reviewing your handbook in 2026 allows employers to correct outdated language, incorporate missed updates from prior years, and confirm policies reflect how work is currently performed.
When Should Employers Consult an Employment Law Attorney?
Consult an attorney whenever:
You operate in multiple states or have remote staff across jurisdictions.
You’ve recently grown, downsized, or changed your work structure.
You’re unsure if your policies reflect California’s newest laws.
You rely on a generic online template that doesn’t match your operations.
Employment law firms like Fairgrieve Law Office provide employer-focused advice that goes beyond compliance checklists. Their team helps businesses craft handbooks that reflect their unique culture, industry, and legal obligations, while reducing the chance of costly mistakes.
Update Your California Employee Handbook for 2026 Compliance
Your 2026 California employee handbook should be practical, up-to-date, and specific to your workplace. When written well, it does more than satisfy legal requirements; it builds clarity, consistency, and trust across your organization.
If your handbook hasn’t been reviewed lately, now is the time. Contact Fairgrieve Law Office to schedule a policy review and ensure your business is ready for 2026’s California employment law updates.
FAQs
What policies are required in a California employee handbook in 2026?
California employee handbooks should address core topics such as harassment and discrimination prevention, wage and hour compliance, leave entitlements, meal and rest breaks, expense reimbursement, and workplace conduct to align with current state requirements.
How often should employers update their handbooks in California?
Employers should review their handbooks at least once a year and whenever changes in state or local employment laws affect workplace policies or procedures.
What new California laws affect employee handbook updates for 2026?
While 2026 did not introduce sweeping handbook mandates, employers should use this year to confirm compliance with updates from 2024 and 2025, including workplace violence prevention rules, leave administration changes, and evolving standards for remote and hybrid work policies.
Employers should note that a new, standalone notice is required to be given to employees. A copy of the required notice can be found here: https://www.dir.ca.gov/dlse/Know-Your-Rights-Notice/Know-Your-Rights-Notice-English.pdf
I only have one employee. Do I need a handbook?
Even employers with just one employee are required to put certain policies into writing. If an employer has only one or two employees, with no intention to grow, we still recommend distributing certain policies, though it can be slimmed down from a more traditional handbook.