BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1399
                                                                  Page  1

          Date of Hearing:   May 18, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

            AB 1399 (Committee on Labor and Employment) - As Amended:  May 
                                      9, 2011 

          Policy Committee:                              Labor and 
          Employment   Vote:                            5-1

          Urgency:     No                   State Mandated Local Program: 
          Yes    Reimbursable:              Yes

           SUMMARY  

          This bill amends provisions of existing law related to an 
          employee's right to inspect or copy personnel records.  
          Specifically, this bill:  

          1)Establishes the right of every employee to both inspect and 
            receive copies of his or her personnel record and requires an 
            employer to comply within 30 days of this request. 

          2)Requires a current employer to maintain a copy of a current 
            employee's personnel record for a minimum of three years after 
            the termination of the employee and make the record available 
            for inspection, or provide copies, at the request of the 
            employee.  Establishes similar provisions for former 
            employers; however, former employees are required to reimburse 
            employers for copies.    

          3)Authorizes a current or former employee, or the Labor 
            Commission (LC), to recover a penalty of $750 from an employer 
            who fails to permit current or former employees from 
            inspecting or copying personnel records pursuant to this 
            measure.  Also, authorizes employees to bring an action for 
            injunctive relief to compliance with these provisions, 
            including attorney's fees. 

          4)Establishes an infraction for violations of provisions in this 
            measure, as specified.  If an employee (current or former) 
            files a lawsuit related to a personnel matter, this measure 
            further requires employee access to personnel records to 
            cease, as specified.  








                                                                  AB 1399
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           FISCAL EFFECT  

          Unknown significant costs, likely between $150,000 and $200,000 
          to the Division of Labor Standards Enforcement related to 
          enforcement of enhanced requirements and conducting a rulemaking 
          process.  

           COMMENTS  

           1)Existing law  specifies that every employee has the right to 
            inspect (but not copy) the personnel records that the employer 
            maintains relating to the employee's performance and any 
            grievances concerning the employee. It also requires the 
            employer make the contents of those personnel records 
            available to the employee at reasonable intervals and at 
            reasonable times. Employers can either keep the personnel 
            records at the place where the employee reports to work, or 
            can keep them elsewhere as long as they can be delivered to 
            the employee's place of work within a reasonable period of 
            time.

            Statute also authorizes the LC to adopt regulations that 
            determine the reasonable times and reasonable intervals for 
            private employers at which they must provide these personnel 
            records.  

           2)Rationale  .  According to the California Rural Legal Assistance 
            Foundation, sponsor of this bill, "The unmistakable purpose of 
            �existing law] is to assure that employees have an absolute 
            right to know the exact nature of information in their 
            personnel file relating to the 'employee's performance or to 
            any grievance concerning the employee.'  In our experience, 
            on-the-spot inspections alone are often inadequate to 
            accomplish this; in those cases, a right to copy the records 
            should be viewed as a natural extension of the right to 
            inspect.

            This bill amends provisions of existing law related to an 
            employee's right to inspect personnel records.

           3)Opposition  . Opponents of this measure (CalChamber and other 
            business organizations) argue the bill is unnecessary and 
            burdensome to employers.  They cite no limitation on the 
            number of times an employee can request access to his or her 








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            personnel file.  For example, a former employee (whose file 
            may not be easily accessible) is able to make multiple 
            requests to inspect or copy his or her personnel file even 
            though the records have not changed.  

            Opponents also contend large employers would incur a 
            significant burden because they may receive a large number of 
            requests to inspect or copy personnel files at one time.  As 
            such, it may be difficult to respond to these requests within 
            30 days, which means they will receive a penalty of $750 under 
            this measure.  

           4)Previous legislation  .  AB 1707 (Labor and Employment 
            Committee, similar to this measure, was vetoed by Governor 
            Schwarzenegger in October 2007 with the following message: 

            "This bill attempts to clarify existing law relative to 
            employees' access to personnel records kept by their employer. 
             While I support the intent of this measure, especially as it 
            relates to non-English speakers and others that may need help 
            in understanding the contents of their personnel records, this 
            bill is too broad and exposes employers to unfair and 
            unnecessary liabilities.  I encourage the proponents of this 
            bill to work with the Labor Commissioner to adopt regulations 
            that help ensure that all employees can appropriately avail 
            themselves of their rights under current law."



          Analysis Prepared by  :    Kimberly Rodriguez / APPR. / (916) 
          319-2081