Every year the
California legislature adds a few wrinkles to the practice of employment
law. This year is no different. While there are many others, the following
are 3 new laws that affect areas that I deal with quite often.
Mistakes on Wage
Statements (SB 1255/Labor Code § 226):
It has been the law for
some time that employers are required to provide nine categories of information
on an employee's wage statement.
However, this new law makes clear that if an employer fails to provide
that information, employees are deemed to suffer an "injury" for the
purpose of recovering a penalty: $50 for the initial pay period; $100 for each
subsequent pay period, with a maximum penalty of $4,000, as well as attorneys'
fees. To avoid costly mistakes, employers
should ensure that the following nine pieces of information appear on each
employee's wage statement:
1.
Name and address of the
legal entity who is the employer; and
2.
Gross wages earned;
3.
Total hours worked
(except for exempt employees);
4.
Piece rate units or
piece rates (if applicable);
5.
All deductions;
6.
Net wages earned;
7.
The inclusive dates of
the period for which the employee is paid;
8.
Employee name and last
four digits of the social security number or employee ID;
9.
All applicable hourly rates
in effect during the pay period and corresponding number of hours worked.
Employers
Barred From Requesting Social Media Information. (AB
1844/Labor Code § 980):
This new law increases
privacy protections for social media users in the state by prohibiting
employers from asking employees or job applicants to disclose any information
related to their personal social media accounts, which includes an employee's
e-mail account and text messages. This
protection includes demanding usernames, passwords, and information related to
social media accounts from employees and job applicants. The law also prohibits
employers from retaliating against anyone who refuses to provide such
information.
However, the law
provides an exception where the employer reasonably believes that the employee
has engaged in misconduct or has violated the law, and the social media
information is used solely for the purpose of an investigation. Further, nothing in this section precludes an
employer from requiring or requesting an employee to disclose a username,
password, or other method for the purpose of accessing an employer-issued
electronic device.
Current
and Former Employees Get Greater Access to their "Personnel
Files."
A new bit of legislation
(AB 2674 ) modifies Labor Code §§ 226
and 1198.5. Under these revised
sections, Employers are required to provide current and former employees with
access to and copies of their
personnel records "relating to the employee's performance or to any
grievance concerning the employee" within 30 days of the request. (The law previously required only that they
be made “available for inspection.”)
The new law does not
clearly define "personnel records" but some examples of personnel records
are: handbook acknowledgment forms; signed arbitration agreements; employment
applications; payroll authorization forms; warnings, discipline and/or
termination notices; notices of layoff, leave of absence, or vacation;
garnishment notices; training notices; performance reviews; and attendance
records. Failure to comply with this new
law may subject an employer to a penalty of $750 per violation, as well as
attorneys' fees. With regard to all employees, employers are also required to
maintain a copy of each employee's personnel records for a period of not less
than three years after termination of employment.
