BILL ANALYSIS Ó
AB 155
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Date of Hearing: March 20, 2013
ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT
Roger Hernández, Chair
AB 155 (Alejo) - As Introduced: January 22, 2013
SUBJECT : Payroll records: right to inspect.
SUMMARY : Provides that a current or former employee has a
right to receive a copy of their payroll records. Specifically,
this bill :
1)Provides that an employee shall elect to inspect or copy the
payroll records, or to receive a copy of the records, or any
combination thereof.
2)Makes related legislative findings and declarations.
EXISTING LAW :
1)Requires an employer to furnish each employee with an accurate
itemized wage statement showing specified information.
2)Requires an employer to maintain specified payroll records for
at least 3 years.
3)Requires an employer to afford current and former employees
the right to "inspect or copy" records pertaining to their
employment, upon reasonable request to the employer, as
specified.
FISCAL EFFECT : Unknown
COMMENTS : According to the author, this bill "ensures that
employees have the right to receive a copy of their employment
records upon a reasonable request to his or her employer. The
bill merely clarifies existing law under the Labor Code and
corrects a flawed court decision. It is vitally important that
employees have access to their records for purposes of future
employment and for documenting a history of work in the United
States for immigration purposes."
Labor Code Section 226 requires employers to provide itemized
wage statements and to maintain specified payroll records. In
1988, Section 226 was amended by SB 2155 (Petris) to change the
AB 155
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pre-existing right of workers to "inspect" their payroll records
by recasting it as a right to "inspect or copy." SB 2155 also
provided that if the employer provides copies of the records,
the actual cost of reproduction may be charged to the current or
former employee.
ARGUMENTS IN SUPPORT
According to the sponsor of this bill, the California Rural
Legal Assistance Foundation (CRLAF), for more than 20 years
California courts uniformly interpreted this statute to provide
for employee access to "copies" of payroll records. However, in
late 2012, a Riverside County Superior Court held otherwise in
Esteban v. JSO, Inc. dba America's Labor Supply, Inc., Docket
No. INC-1104544. In that case, the superior court stated,
"Plaintiff contends that this section obligates an employer to
make copies. It does not. The plain language of the section
obligates an employer to make records available for the employee
to inspect and copy?If the Legislature wanted to require an
employer to copy records on request, it could easily have said
so."
According to CRLAF, this decision was "unjustifiable" in light
of the legislative history of SB 2155. The context of the
passage of SB 2155 (which was an urgency statute) was to enable
California workers to get copies of their records in order to
qualify for legalization under the 1986 Immigration Reform and
Control Act, which, among other things, required proof of prior
and current work history in the United States. This purpose is
reflected in the legislative history of SB 2155, which is quoted
extensively in the legislative findings of this bill. CRLAF
contends that the current proposed federal immigration
legislation underscores the need for the clarification proposed
by this bill. A central tenet of these proposals is that
undocumented workers, in order to qualify, must be able to
"demonstrate a history of work in the United States, and current
employment, among other requirements..."
Therefore, CRLAF states that the narrow purpose of this bill is
to eliminate confusion about the right of California workers to
inspect or receive a copy of their itemized wage statements upon
reasonable request to their current or former employer.
ARGUMENTS IN OPPOSITION
AB 155
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A coalition of employer groups, including the California Chamber
of Commerce, opposes this bill because it "mandates that it is
within the employee's discretion as to whether the employee
receives a copy of his/her payroll records, inspects the payroll
records on the employer's premises, or both." Opponents contend
that is especially problematic with regard to former employees
who have been terminated for misconduct. Allowing such an
employee to come onto the employer's premises and inspect
records could create a potential unsafe work environment for
existing employees and patrons.
REGISTERED SUPPORT / OPPOSITION :
Support
American Federation of State, County and Municipal Employees
California Communities United Institute
California Nurses Association
California Rural Legal Assistance Foundation (sponsor)
National Lawyers Guild Labor & Employment Committee
Maintenance Cooperation Trust Fund
Opposition
Associated Builders and Contractors of California
Associated General Contractors
CalChamber
California Business Properties Association
California Construction & Industrial Materials Association
California Framing Contractors Association
California Grocers Association
California Independent Grocers Association
California Manufacturers & Technology Association
California Restaurant Association
California Retailers Association
Western Electrical Contractors Association, Inc.
Analysis Prepared by : Ben Ebbink / L. & E. / (916) 319-2091