Employee Handbook Updates: New Laws Coming for 2026
The new legislative bills that passed this year impose many new obligations on California employers for 2026. Some of these bills also warrant updates to Employee Handbooks and written policies. This issue of Coffee Break outlines a few key changes to written policies that employers should implement as a result of the new laws.
By implementing these updates to policies and procedures, organizations can protect employee rights, reduce risk, and reinforce their commitment to legal and ethical standards.
SB 590
Paid Family Leave — Designated Person
Summary
Effective January 1, 2024, SB 590 expands California's Paid Family Leave (PFL) program to include care for a 'designated person.' A designated person is defined as any individual related by blood or whose association with the employee is the equivalent of a family relationship. Employees may identify their designated person at the time of leave request and must attest to the relationship under penalty of perjury. Also, employees may designate one person per 12-month period. Changes to the designated person may be made once per 12-month period, unless a change is necessitated by extraordinary circumstance
Policy changes needed
Paid Family Leave- Employers who maintain written policies regarding eligibility for Paid Family Leave benefits should update such policies include care for a 'designated person' as defined above and should indicate that the designated person must be identified at the time of the leave request, and the employee must provide a written attestation under penalty of perjury describing the nature of the relationship.
SB 294
Workplace Know Your Rights Act
Summary
Effective February 1, 2026, SB 294 requires employers to provide a written notice to employees and new hires outlining key workplace rights. This includes rights related to workers’ compensation, union activity, immigration-related protections, and constitutional protections during law enforcement interactions. Employers must also provide employees the opportunity to designate an emergency contact and notify that contact in case of arrest or detention at the workplace.
Policy Changes Needed
In addition to providing the required notice to employees, employers should implement a policy regarding the Workplace Know Your Rights Act that allows employees to
designate an emergency contact for notification in the event of arrest or detention at the workplace. The policy should also state that there shall be no retaliation against any employee for exercising rights under this policy.
Procedures should also be developed for personnel who will be processing the emergency contact designations and implementing any notifications in the event of arrest of detention at the workplace.
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