BILL ANALYSIS Ó AB 2674 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 2674 (Swanson) As Amended August 23, 2012 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |48-25|(May 7, 2012) |SENATE: |23-13|(August 28, | | | | | | |2012) | ----------------------------------------------------------------- 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. AB 2674 Page 2 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 AB 2674 Page 3 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 AB 2674 Page 4 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