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California has enacted new laws that may require you to update your employee handbook. Please review the information below carefully and update your policies as necessary to ensure your handbook remains compliant and up to date. All of the changes outlined below will be reflected in the updated Handbook Draft that will be provided to you.

NCAT can assist employers with required updates to their Employee Handbooks. Contact info@alliedtrades.org to request a consultation with an HR professional.

Paid Sick Leave & Paid Time Off (PTO) Policy Updates

Your Paid Sick Leave and Paid Time Off (PTO) policies must be updated to reflect changes made by Assembly Bill 406, which expands the permissible uses of paid sick leave under California’s Healthy Workplaces, Healthy Families Act (HWHF).

In addition to existing qualifying reasons, employees may now use paid sick leave for the following:

  • Jury duty

  • Appearing in court as a witness

  • For leave taken on or after January 1, 2026:

    • Judicial proceedings related to specified crimes

    • Any proceedings involving a victim’s rights

These additional qualifying reasons must be expressly included in your Paid Sick Leave and PTO policies.

Jury Duty & Witness Leave Policy Review

You must review your Jury Duty and Witness Leave policy to ensure it clearly states that employees may use paid sick leave provided under the HWHF when taking time off work to:

  • Serve on a jury, or

  • Appear in court as a witness

This clarification is now required to align with the updated paid sick leave law.

Leave for Criminal Judicial Proceedings & Victim’s Rights Policy

Your Leave for Criminal Judicial Proceedings and Victim’s Rights policy must be updated to reflect changes to California’s paid sick leave law.

Specifically, the policy must state that for leave taken on or after January 1, 2026, employees may use paid sick leave provided under the HWHF for qualifying judicial proceedings and victim’s rights-related matters.

Employer Meetings & Communications Policy – Deletion Required

If your handbook includes an Employer Meetings and Communications policy, it must be deleted.

This optional policy was originally created in response to a 2025 California law that prohibited employers from discriminating or retaliating against employees who declined to attend employer-sponsored meetings or communications related to the employer’s views on religious or political matters.

On September 30, 2025, a federal district court issued a preliminary injunction blocking enforcement of this law, finding that it:

  • Infringes on employers’ speech rights under the First and Fourteenth Amendments, and

  • Is preempted by the National Labor Relations Act

California has appealed the decision, and litigation is ongoing. Updates will be provided if the injunction is overturned and the law becomes enforceable.

Minimum Wage & Salary Requirements (Effective January 1, 2026)

As in prior years, California’s minimum wage has increased. Please ensure the following pay requirements are met:

  • Non-exempt employees must earn at least $16.90 per hour

  • Exempt employees must earn a minimum annual salary of $70,304

Please note:

  • Minimum wage rates for Fast Food Workers and Healthcare Workers differ from the standard state minimum wage

  • Certain cities and counties have higher local minimum wage rates

You are responsible for confirming and complying with all applicable state and local wage requirements.