BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 2674
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 2674 (Swanson)
          As Amended  August 23, 2012
          Majority vote
           
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          |ASSEMBLY:  |48-25|(May 7, 2012)   |SENATE: |23-13|(August 28,    |
          |           |     |                |        |     |2012)          |
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           Original Committee Reference:    L. & E.  

           SUMMARY  :  Revises requirements of existing law concerning an 
          employee's right to inspect personnel records.  

           The Senate amendments  :

          1)Provide that an employer shall not be required to comply with 
            more than 50 requests to inspect and receive a copy of 
            personnel records filed by a representative or representatives 
            of employees in one calendar month.

          2)Provide that these requirements do not apply to an employee 
            covered by a valid collective bargaining agreement if the 
            agreement expressly provides for the wages, hours of work, and 
            working conditions of the employees, a procedure for the 
            inspection and copying of personnel records, premium wage 
            rates for all overtime hours worked, and a regular rate of pay 
            of not less than 30% more than the state minimum wage rate.

          3)Clarify a provision of law enacted last year that required 
            employers to maintain a copy of itemized wage statements to 
            provide that a "copy" includes a computer-generated statement, 
            as specified.

          4)Add chaptering out amendments to avoid a conflict with two 
            other pending bills.

           AS PASSED BY THE ASSEMBLY  , this bill:  

          1 Allowed employees to both inspect and receive a copy of their 
            personnel records, and establishes a 30 calendar day period 
            for compliance with an employee request to do so.  This time 
            frame may be extended to up to 35 calendar days by mutual 
            agreement.








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          2)Provided that the inspection and copying rights apply to both 
            current and former employees, and their representative, as 
            specified.

          3)Provided that a request to inspect or receive a copy of 
            personnel records shall be made in either of the following 
            ways:

             a)   Written and submitted by the current or former employee 
               or his or her representative; or, 

             b)   Written and submitted by the current or former employee 
               or his or her representative by completing an 
               employer-provided form.

          4)Specified that the employer-provided form shall be made 
            available to the employee or his or her representative upon 
            verbal request to the employee's supervisor or other 
            employer-designated individual (if known).

          5)Specified that the employer may take reasonable steps to 
            assure the identity of a current or former employee or his or 
            her representative, and defines "representative" to mean a 
            person authorized in writing by the employee to inspect or 
            receive a copy of his or her personnel records.

          6)Specified that an employer may redact the name of any 
            non-supervisorial employee contained in the personnel records 
            prior to inspection or copying.

          7)Required an employer to maintain personnel records for at 
            least three years following an employee's termination of 
            employment.

          8)Required, for current employees, an employer to make the 
            employee's personnel records available for inspection and (if 
            requested) to provide a copy, at the place where the employee 
            reports to work or at another location agreeable to the 
            employer and employee.  If the employee is required to inspect 
            or receive a copy at a location other than the place where he 
            or she reports to work, no loss of compensation to the 
            employee shall be permitted.

          9)Required, for former employees, an employer to make the 








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            employee's personnel records available for inspection, and (if 
            requested) provide a copy, at the location where the employer 
            stores the records.  In addition, specifies that a former 
            employee shall have the option of receiving a copy by mail, 
            provided he or she reimburses the employer for the actual 
            postal expenses.

          10)Provided that if a former employee was terminated for a 
            violation of law, or an employment-related policy involving 
            harassment or workplace violence, the employer at his or her 
            option may respond to a request either by making the records 
            available at a neutral location or providing a copy.  However, 
            nothing shall limit a former employee's right to receive a 
            copy of such records in lieu of inspection.

          11)Provided that, with respect to former employees, an employer 
            is required to comply with only one request per former 
            employee per year.

          12)Allowed for the recovery of a $750 penalty if the employer 
            fails to comply with these requirements.

          13)Provided that a current or former employee may also bring an 
            action for injunctive relief and recover costs and reasonable 
            attorney's fees in such an action.

          14)Specified that a violation of these requirements is an 
            infraction, and impossibility of performance may be raised by 
            an employer as an affirmative defense.

          15)Provided that the inspection rights cease during the pendency 
            of a lawsuit which relates to a personnel matter.

           FISCAL EFFECT  :  According to the Senate Appropriations 
          Committee, pursuant to Senate Rule 28.8, negligible state costs.

           COMMENTS  :  This bill is sponsored by the California Rural Legal 
          Assistance Foundation (CRLAF) and is designed to ensure that 
          current and former employees have a right to inspect and copy 
          their personnel files in order to defend their rights under 
          important state and federal statutes.  CRLAF argues that, under 
          California law, it is a fundamental right that employees must 
          have access to their personnel records in order to properly 
          defend their rights under applicable employment laws.  However, 
          existing Labor Code Section 1198.5 (which purports to protect 








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          this right) is extremely vague and unclear.  Unscrupulous 
          employers and their attorneys use this fact to their advantage 
          to hide information that otherwise would be disclosed.  This 
          type of uncertainty disadvantages employees, who have not seen 
          the records and therefore are not able to question the 
          employer's adverse employment actions against them.  Therefore, 
          this bill seeks to clarify and improve current law with respect 
          to personnel records.

          Last year a similar measure (AB 1399 (Labor and Employment 
          Committee)) was opposed by the California Chamber of Commerce.  
          However, the sponsor negotiated a series of amendments over the 
          last several months.  As a result, the California Chamber of 
          Commerce now has no position on this bill.

          In addition, at the request of employers, this bill makes a 
          clarification to legislation enacted last year AB 469 (Swanson), 
          Chapter 655, Statutes of 2011, requiring employers to maintain a 
          "copy" of worker paystubs.  This amendment clarifies that a 
          "copy" can include a computer-generated record rather than an 
          actual duplicate copy, as specified.
           

          Analysis Prepared by  :    Ben Ebbink / L. & E. / (916) 319-2091 


          FN: 
          0005441