California employee handbooks require more than routine maintenance. Heading into 2026, several statutory changes and enforcement developments directly affect handbook language, and many existing policies no longer reflect what the law requires. Employers who rely on older templates or partial updates may find themselves out of step with current obligations.
The question for 2026 is not whether to review your handbook, but whether it accurately reflects what California law now requires employees to be told.
Expanded Paid Sick Leave and Victims’ Leave Protections
Paid sick leave is one of the most commonly outdated sections of California handbooks, and recent changes make review essential. Beginning in 2026, California law expands the permitted uses of paid sick leave to include additional situations, such as attending court proceedings related to jury duty, subpoenas, or when an employee or a covered family member is a victim of certain crimes.
Many handbooks still describe paid sick leave in narrow or outdated terms. Policies should be updated to reflect expanded usage rights and to clearly communicate anti-retaliation protections tied to lawful leave use. Where paid sick leave overlaps with other protected leaves, clarity matters. Vague or incomplete language increases the risk of misapplication when an employee requests time off.
Mandatory “Know Your Rights” Disclosures
Effective February 1, 2026, California employers are required to provide employees with an annual written “Workplace Know Your Rights” notice issued by the Labor Commissioner. This notice covers a wide range of statutory protections, including wage and hour rights, anti-discrimination and retaliation protections, and leave entitlements.
While the notice itself is distributed separately, employee handbooks should be reviewed to ensure they do not conflict with or undermine these disclosures. Handbooks that contain outdated explanations of employee rights, complaint procedures, or enforcement agencies can create confusion and compliance issues during audits or investigations.
Minimum Wage Increases and Exempt Salary Thresholds
As of January 1, 2026, California’s minimum wage increases to $16.90 per hour for all employers. This change also impacts salary thresholds for exempt executive, administrative, and professional employees. Handbook language describing exempt status, overtime eligibility, and wage compliance should be reviewed to ensure it reflects current thresholds and legal standards.
Employers should also review policies addressing timekeeping, meal and rest periods, and after-hours work, particularly for remote or hybrid employees. Handbooks that were drafted before remote work became common often fail to address these realities clearly, creating unnecessary wage and hour exposure.
Personnel Records and Recordkeeping Policies
Recent legislation expands the definition of “personnel records” to include employee education and training records. This change affects how employers maintain, store, and provide access to certain documents. Handbook sections addressing personnel files, confidentiality, and employee access rights should be reviewed to ensure they accurately describe current obligations.
Outdated language in this area can lead to compliance issues when employees request records or when employers rely on incomplete definitions of what must be retained.
Training Reimbursement and “Stay-or-Pay” Language
California law now places restrictions on certain “stay-or-pay” provisions, including training repayment requirements that effectively penalize employees for leaving employment. Handbooks that reference repayment obligations, reimbursement policies, or training cost recovery should be reviewed carefully to ensure they do not include language that could be unenforceable or unlawful.
In addition to statutory changes, California continues to increase enforcement efforts related to wage and hour violations, retaliation, and recordkeeping failures. While not every enforcement change requires new handbook language, they underscore the importance of having policies that are clear, accurate, and aligned with current law.
A handbook that contains outdated or inconsistent language can undermine an employer’s defense, even when actual practices are otherwise compliant.
Many handbook issues arise from reliance on generic templates or partial updates. Templates often lag behind California law, and piecemeal revisions can create internal inconsistencies. A handbook should be reviewed as a whole to ensure policies work together, reflect current operations, and comply with applicable federal, state, and local requirements.
At EmployLaw Group, we build employee handbooks California employers can rely on. Whether you need your first handbook, a full rewrite, or a targeted update, we help you address wage and hour compliance, leave policies, harassment prevention, hybrid work, and more. Our handbooks are designed to reflect your culture, clarify expectations, and stay aligned with federal, California, and local laws, using language your team can actually use. Learn more about our employee handbook and employment document services here or call us today at (805) 586-1381 to get started.