Disclaimer: The content provided below is for informational purposes only and does not substitute legal advice.
Last updated October, 2026
California employee handbook overview
California is known for having some of the most complex and employee-friendly labor laws in the country, which makes compliance more challenging for businesses compared to other states. There are special requirements in multiple policy categories, including meal and rest breaks, paid sick leave, and anti-harassment training, as well as city-specific requirements. California employers must navigate a dense and evolving regulatory landscape.
Companies with employees in California need handbooks that are carefully customized to include state-mandated policies. The rate of change to policies that affect employees is also very high. Handbooks should be reviewed and updated regularly to stay current with frequent legal changes.
What’s unique about California employee handbooks?
California has more employment-related policies than any other US state. Many city-specific policies need to be included if you have employees in certain locations. Cities with their own policies include: Berkeley, Emeryville, Los Angeles, Oakland, San Diego, San Francisco, Santa Cruz, Santa Monica, and West Hollywood.
It’s a lot to keep up with and compliance in California is important. Here’s a list of policies you should include in your handbook:
- California Equal Pay Policy: Employers may not pay employees less based on sex, race, or ethnicity for substantially similar work. Employers may not prohibit employees from discussing wages and must maintain wage records for three years.
- California Workplace Know Your Rights Notice and Emergency Contact Designation: Employers must provide all employees with an annual written notice of their workplace rights, including workers' compensation, immigration protections, the right to organize, and constitutional rights with law enforcement.
- California Qualifying Acts of Violence Leave: Employers with 25 or more employees must provide up to 12 weeks of leave for employees who experience a qualifying act of violence, or whose family member dies as a result. Employees whose family member survived such an act are entitled to up to 10 days.
- California Paid Sick Leave Policy: California requires eligible employees to earn 1 hour of paid sick leave for every 30 hours worked. Employees can carry over up to 80 hours (or 10 days) of leave to the next year.
- California Anti-Harassment Policy: Anti-harassment training is required for companies with 5 or more employees.
- California Family Rights Act (CFRA): Employees are eligible to take up to 12 weeks of unpaid leave for themselves or to care for family members.
- California Religious Accommodations Policy: The California Workplace Religious Freedom Act requires companies to accommodate religious beliefs, including appearance.
- California Payroll Practices and Compensation Policy: Employers have specific responsibilities around payroll , pay periods, accrued vacation, and their final paycheck.
- California Make-Up Time Policy: Employees must be able to make up time missed at work for personal reasons under certain guidelines.
- California Meal and Rest Periods Policy: Most workers are entitled to a 30-minute unpaid meal break and a 10-minute rest break.
- California Lactation Accommodations: Employers are required to provide reasonable accommodations for nursing mothers , including time to express milk in privacy.
- California Voting Leave Policy: Employees who do not have time to vote while the polls are open can take up to two hours of paid leave in order to vote.
- California Bereavement Leave Policy: Employees who work for companies with 5 or more employees may be entitled to bereavement leave following the death of a loved one.
- California Reproductive Loss Leave Policy: Eligible employees may take up to five days of leave following a reproductive loss event, defined as a miscarriage, stillbirth, failed adoption, failed surrogacy, or unsuccessful assisted reproduction.
- California Military Service Leave Policy: Leave is granted for certain military service, as well as leave for military spouses.
- California Jury Duty Leave Policy: Companies must allow employees to respond to a summons to serve on a jury .
- California Disability Accommodation Policy: Employers must make reasonable accommodations for persons with physical or mental disabilities to apply for and work in jobs.
- California Literacy Leave Policy: Companies with 25 or more employees must provide accommodations or time off for literacy assistance .
- California Personnel File Access Policy: Employees must have the ability to review their personnel or payroll records .
- California COBRA (CAL-COBRA) Policy: Employees whose hours are cut or whose job ends are eligible to continue their benefits. The duration of the continuation is based on the employer's size.
- California Pregnancy Disability Leave Policy: Employees are provided up to four months of unpaid leave due to pregnancy , birth, or related conditions.
- California Time Off For Volunteer Firefighters, Reserve Peace Officers & Emergency Rescue Personnel: Certain emergency personnel are able to take up to 14 days off per year to carry out their duties .
- California Business Expense Reimbursement Policy: Companies are required to reimburse employees for necessary losses or expenses directly related to their ability to do their jobs.
- California Social Media Privacy Policy: Employers cannot ask employees or applicants to disclose usernames or passwords for personal social media accounts.
- California Alcohol and Drug Rehabilitation Policy: Companies with 25 or more employees must provide reasonable accommodations to employees participating in drug or alcohol rehab programs .
- California Fair Chance Act: Employers with five or more employees may not inquire about criminal history before making a conditional offer of employment.
- California Witness and Victims of Crime Leave Policy: Companies must provide leave for crime victims , including domestic or sexual violence. Companies cannot retaliate against employees for taking leave.
- California Bone Marrow and Organ Donation Leave Policy: Eligible employees may take paid leave for bone marrow or organ donation
- California Background Check Policy: Employers in California have specific responsibilities when conducting background checks on applicants or employees, including providing a copy of any reports.
- California School Involvement Leave Policy: Employees with children in school may take up to 40 hours of unpaid leave per year for school activities.
- California Whistleblower Policy: Employers may not retaliate against employees who report suspected violations of law to a government or law enforcement agency, or who refuse to participate in activity that would result in a violation of law.
- California Workers' Compensation Policy: All employers must carry workers' compensation insurance. There are no minimum employee thresholds. Failure to maintain coverage is a criminal offense.
- California Wage Transparency Policy: Employers with 15 or more employees must include pay scale information in all job postings. Employers with 100 or more employees must submit annual pay data reports.
- California WARN Act: Employers with 75 or more employees must provide 60 days' notice before mass layoffs, relocations, or plant closings affecting 50 or more workers. This is stricter than the federal threshold of 100 employees.
California city-specific policies
Many California cities have additional required policies if employees are based in one of the following cities. Here are some of the most important policies required for each of these cities, followed by their breakdown. Policies for cities change frequently and this list is not exhaustive.
City of Berkeley
- Berkeley Paid Sick Leave Policy: Employers are required to provide employees based in the city of Berkeley, CA, with paid sick leave . Employees accrue 1 hour of paid sick leave for every 30 hours worked and may begin to use accrued sick leave 90 days after the commencement of employment. If the company has fewer than 25 employees at the start of the calendar year, an employee’s accrued paid sick leave is capped at 48 hours. If the company has 25 or more employees at the start of the calendar year, an employee’s accrued sick leave is capped at 72 hours.
- Berkeley Fair Workweek Ordinance: The law requires certain large retail, hospitality, and food service employers in Berkeley to provide employees with fair and predictable work schedules. Covered employers must give workers at least two weeks' advance notice of their schedules and compensate them for last-minute changes. Employees have the right to decline additional hours that were not previously scheduled and must be offered available shifts before new hires are made. The law also includes provisions for rest between shifts and requires at least 10 hours of rest between scheduled shifts, unless the employee voluntarily agrees to work with extra pay. Employers may not retaliate against workers who utilize these protections, and violations may result in penalties and legal action.
City of Emeryville
- Emeryville Sick Leave Policy: Employers are required to provide employees based in the city of Emeryville, CA, with paid sick leave . Small businesses must provide no less than 48 hours of paid sick leave each year, while larger employers must provide no less than 72 hours. A small business has 55 or fewer employees.
- Emeryville Fair Workweek Ordinance: The law requires retail and fast-food employers in Emeryville to provide employees with predictable work schedules and stable hours. It applies to retail firms with 56 or more employees globally and fast food firms with 56 or more employees globally, as well as those with at least 20 employees in Emeryville. Covered employers must give employees at least 14 days' advance notice of their schedules and compensate them for last-minute changes. Employees have the right to decline unscheduled hours and must be offered additional shifts before new hires are made. The ordinance also mandates at least 11 hours of rest between shifts, unless the employee agrees to work with premium pay. Employers are prohibited from retaliating against employees who exercise their rights, and violations may result in penalties and legal action.
City of Los Angeles
- Los Angeles Sick Leave Policy: Employers are required to provide employees based in the city of Los Angeles, CA, with paid sick leave . For every 30 hours worked, employees accrue 1 hour of paid sick leave. Employees may begin using accrued sick leave 90 days after the start of employment. Employees can accrue up to 72 hours of paid sick leave at any given time, but can only use 48 hours of accrued sick leave during any calendar year.
- Los Angeles Fair Work Week Ordinance: The ordinance requires large retail employers in Los Angeles with 300 or more employees globally to provide workers with predictable schedules and stable hours. Employers must give employees at least 14 days' advance notice of their schedules and compensate them for any last-minute changes. Employees have the right to decline additional hours that were not previously scheduled and must be offered available shifts before new hires are made. The law also mandates at least 10 hours of rest between shifts, unless the employee consents to work with premium pay. Retaliation against employees for asserting their rights is prohibited, and violations may result in penalties, back pay, and other legal consequences.
- Los Angeles Fair Chance Ordinance: LA has its own ban-the-box law that is broader than the state version, applying to employers with one or more employees.
City of Oakland
- Oakland Sick Leave Policy: Employers are required to provide employees based in the city of Oakland, CA with paid sick leave . For every 30 hours worked, employees accrue 1 hour of paid sick leave. If the company has fewer than 10 employees at the start of the calendar year, an employee’s accrued paid sick leave is capped at 40 hours. If the company has 10 or more employees at the start of the calendar year, an employee’s accrued paid sick leave is capped at 72 hours.
City of San Diego
- San Diego Sick Leave Policy: Employers are required to provide employees based in the city of San Diego, CA with paid sick leave . For every 30 hours worked, employees accrue 1 hour of paid sick leave. Employees can earn up to 80 hours of paid sick leave annually, but can only use 40 hours of sick time in a particular year.
City of Santa Cruz
- Santa Cruz Equal Employment Opportunity Policy: Employers in the City of Santa Cruz are prohibited from discriminating against applicants or employees based on certain characteristics .
City of Santa Monica
- Santa Monica Sick Leave Policy: Employers are required to provide employees based in the city of Santa Monica , CA with paid sick leave. Employers must provide 40 hours (small businesses) or 72 hours (larger businesses) of paid sick leave.
City of San Francisco
- San Francisco Sick Leave Policy: Employers are required to provide employees based in the city of San Francisco, CA with paid sick leave . For every 30 hours worked, employees accrue 1 hour of paid sick leave. If the company has fewer than 10 employees at the start of the calendar year, an employee’s accrued paid sick leave is capped at 40 hours. If the company has 10 or more employees at the start of the calendar year, an employee’s accrued paid sick leave is capped at 72 hours.
- San Francisco Family Friendly Workplace Policy: Employers are required to provide certain employees with flexible work arrangements to assist with caregiving responsibilities.
- San Francisco Equal Employment Opportunity Policy: A city-specific EEO policy provides protections for employees based on protected characteristics.
- San Francisco Lactation Accommodation Policy: Employers are required to provide accommodations for nursing mothers to express breast milk.
- San Francisco Mass Transit Commuter Benefits Policy: Certain employees are eligible to exclude certain commuting costs from taxable wages.
- San Francisco Paid Parental Leave Benefits Policy: Provides up to eight weeks of parental leave and partial wage replacement for employees who need time away from work to care for a child.
- San Francisco Military Leave Pay Protection Ordinance: Employers with 100 or more employees must supplement military pay for employees on military leave for up to 30 days.
City of West Hollywood
- Employees accrue .047 hours of paid leave for every 1 hour of regular time worked. Leave may be carried over for a maximum of 192 hours. Employees are also provided with unpaid leave.
Federal Policies
Don’t forget about the federal policies
There are policies that should be included in every handbook to comply with US labor and employment law. Many states require additional provisions. However, this list includes core federal requirements and best practices applicable to most businesses.
Core federal policies
- Equal Employment Opportunity and Anti-Discrimination Policy Show me!
- Anti-Harassment and Complaint Procedure Show me!
- Family Medical Leave Act (FMLA) Policy Show me!
- Americans with Disabilities Act (ADA) & Reasonable Accommodation Policy
- Military Service Leave (USERRA)
- Wage and Hour Compliance Policy (FSLA)
- At-Will Employment Notice Show me!
- Polices if you employ federal contractors (Pay Transparency Policy, Whistleblower Protection, Drug-free Workplace Policy)
Highly recommended policies
- Workplace Violence Prevention Policy
- Code of Conduct Policy
- Nursing Parents Policy
- Conflict of Interest and Business Ethics
- Disciplinary Procedures
- Use of Company Property
- Employee Classification and Pay Practices
- Health and Safety Policy
- Confidential Company Information
- Open Door Policy
- Receipt of Non-Harassment Policy
- Use of Communication and Computer Systems
- Workplace Searches and Inspections
Additional policies to include
- Industry-specific policies
- Sick Leave, Vacation Leave, PTO policy
- Company Vehicles Policy
- Punctuality and Attendance
- Benefits
- Working Schedule
- Employment Records
- Smoking
- Overtime
- Performance Reviews
- Social Media Policy
- Remote Work Policy
- Introductory Period Policy
- References
- Hiring Relatives and Significant Others
- Business Expense Reimbursement
Get all recommended policies from the free handbook builder.
Poster Requirements
Understanding labor law poster requirements can be a bit like trying to decode a complex puzzle. You need to comply with both state and federal requirements.
Why Should I Care About Displaying Posters?
You might be wondering why it's so important to display these posters in the first place. State and Federal laws mandate that employers must have up-to-date labor law posters conspicuously displayed for their employees. Failing to do so not only results in steep fines (up to $35,000 in federal fines and additional state fines) but also exposes you to real liability.
Consider this scenario: if an employee decides to bring a lawsuit against your company, and you don't have the required posters or they are outdated, you could face even more significant problems:
Statute of Limitations: Normally, there's a limited window within which an employee can file a lawsuit against you. However, if you didn't inform your employees of their rights through proper poster display, a court might decide that the statute of limitations doesn't apply.
Operating in Bad Faith: Courts may determine that you were intentionally withholding information from your employees, which could lead to a finding that you were operating in bad faith. This can substantially increase your liability.
What Are the Requirements for Displaying Labor Law Posters?
Labor law posters must be displayed at every physical location where you have employees, and they need to be conspicuously displayed for all to see.
- If you have a hybrid workplace with both in-person and remote employees, you'll need physical posters at your facilities and electronic distribution to your off-site workers.
- For fully remote companies, you can distribute posters electronically by sharing a permanent link to the appropriate posters.
- Some posters also need to be visible to job applicants, such as FMLA, Equal Employment Opportunity, and Employee Polygraph Protection posters, as per the guidance provided by the Department of Labor.
What Labor Law Posters Do I Need to Display?
You'll need both Federal and State labor law posters for each state where you have employees. The good news is that all the posters you need are provided for free by the federal government and state departments of labor. You've probably seen those convenient "all-in-one" laminated posters, but if you prefer, everything you need is also available as a free, printable document from the California Department of Labor.
Federal Poster Requirements
Determining which federal posters you're required to display can be influenced by various factors, including your industry, the size of your company, benefits you provide and union affiliation.
The good news is that there's a handy tool to help you understand precisely which federal posters your company needs. You can use the Federal Poster Advisor tool to determine your specific federal poster requirements.
California Labor Law Poster Requirements
You can refer to the California Department of Labor for free, printable posters.
Download California labor law posters here
How to create your California Employee Handbook
An employee handbook isn't just a formality, it's the foundation of a well-run company. But getting it right means more than putting words on paper. Your handbook needs to comply with all applicable federal, state, and local employment laws, and it needs to stay current as those laws change.
When it comes to building a legally sound, state-specific handbook, most companies face the same tough choice: hire an attorney to draft one from scratch, or try to do it yourself. The first option is expensive and time-consuming. The second is risky, especially if you're relying on generic, one-size-fits-all templates found online.
That's where Handbooks.io comes in.
Handbooks.io is an employee handbook builder trusted by many companies to create polished, fully compliant handbooks, without the legal fees or guesswork. Answer a short survey about your company, and a tailored handbook is generated in no time. It's everything you need to create, maintain, and distribute a professional employee handbook, all in one place. Let’s build this thing!
Get started on building your handbook
Creating a new handbook only takes a few minutes. And it’s easy. You can get started by answering a few interactive questions about your company. A few examples:
- How many employees do you have?
- Do you have employees in multiple states?
- Do you have an introductory period for new employees?
- Do you offer paid holidays?
- What is your payroll schedule?