Employee handbooks must document a company's compliance with federal and state laws and regulations. Read on to learn about required and optional California employee handbook policies, then find out how we take the work out of compliance.The employee handbooks should reflect compliance with any local ordinances and federal laws that apply to your business. Creating an employee manual helps employees know your company's rules, policies, expectations, and potentially avoid lawsuits. Here's what you should include. The California Employee Handbook Toolkit provides numerous resources California employers can use to create, maintain, and distribute employee handbooks. Here are a few common mistakes employers should try to avoid: (1) SelfRegulation: Employers often include items in handbooks that are not required. No, employee handbooks are not required in California. However, having an employee handbook is still best practice for several reasons. Employee Handbooks are business policy documents that document company rules and expectations and may include necessary legal notices.