Why All Employers Should Have an Employee Handbook

Each year, you should evaluate your Employee Handbook to ensure it is updated to reflect your current policies and applicable laws. Based on the new laws for 2026, important recommended updates this year include new requirements regarding Paid Sick Leave use, updates to Crime Victim, Jury, and Witness Duty absence policies, and the addition of an Artificial Intelligence/Automated Decision-Making policy.

If you don’t have a handbook, don’t wait until there is a problem.  If you already have one, make sure you are consistently updating it. CEA can help you get started on your Employee Handbook or 2026 updates. CEA’s customizable California Employee Handbook Template is available in English and Spanish, with options for you to Do-It-Yourself or have one of our California HR experts customize it for you.  For more information, please see our Employee Handbook page or contact us. The 2026 updates are available for free to all current CEA members on our handbook page.

Why Do We Need an Employee Handbook?

Whether your business is small, large, or somewhere in between, a well-written, up-to-date employee handbook helps keep your business running smoothly by:

• Documenting your compliance with applicable laws. For example, not only is it required, but having a robust harassment, discrimination, and retaliation policy can aid in the defense of claims.  Written policies can also help demonstrate company compliance with important requirements, such as providing meal, rest, and recovery breaks in accordance with California law.
• Affirming your policy of at-will employment, which can be critical in the event of a claim of termination in violation of contract.
• Educating your supervisors and managers about currently applicable laws and company policies to help ensure compliant, fair, and consistent treatment of employees.
• Explaining benefits, such as paid sick leave, vacation, and holidays, to avoid misunderstandings that could lead to lawsuits.
• Setting expectations about standards of conduct, use of electronic systems, and handling of company confidential information.
• Showcasing your company's mission and culture.

Equally important, having a handbook tailored to your business sends a message to employees that the company has put thought into its policies and benefits and cares about their employees’ experience.