Leave and Benefits Updates for California Employers in 2026

Stoel Rives - World of Employment

California’s leave and benefits landscape continues to expand with revised paid sick leave rules, upcoming changes to paid family leave, and broader personnel file access requirements. Employers must understand these changes to avoid disputes and maintain compliant practices.

Here is what you need to know.

Paid Sick Leave Expansion

California’s paid sick leave law now requires more generous leave than in prior years. The minimum leave available to employees has increased to 40 hours (5 days) per year. Employers may still use an accrual method, such as one hour of sick leave for every 30 hours worked, provided it is at least as generous as the statutory requirement.

The law also expands the reasons for which employees may use paid sick leave beyond their own health or caring for an ill family member. Employers should ensure their policies reflect these broader qualifying uses and that their payroll systems calculate pay at the employee’s regular rate of pay.

Paid Family Leave Benefits Are Expanding in 2028

Beginning July 1, 2028, California will broaden its Paid Family Leave program to allow eligible employees to receive benefits to care for a designated person with a serious health condition. This category includes any individual related by blood or whose relationship to the employee is like a family relationship.

While employers will not administer the benefit directly, they should be aware of the change and inform employees of available benefits when relevant.

Personnel File Requests Have Grown

Under Senate Bill 513, personnel file requests now explicitly include educational and training records. Employers must produce all signed documents and performance-related materials in the personnel file upon an employee’s request.

Employers should prepare for these requests, as they often signal a potential claim or a demand letter. Providing a complete and timely response helps mitigate risk.

Conclusion

Paid sick leave and paid family leave developments, along with expanded personnel file access, require thoughtful policy review and communication. Employers should confirm that accrual methods meet the law, that leave use criteria are up to date, and that personnel files are complete and organized.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

© Stoel Rives - World of Employment

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