I often get employee
requests to view their payroll records. This makes me nervous, as I feel it can
be a setup for a wage claim. Can you provide an overview of the applicable rules,
including restrictions employers can place on when these records can be
inspected?
– Ann T. in
The HR Management & Compliance Report: How To Comply with California Wage & Hour Law, explains everything you need to know to stay in compliance with the state’s complex and ever-changing rules, laws, and regulations in this area. Coverage on bonuses, meal and rest breaks, overtime, alternative workweeks, final paychecks, and more.
Of course, the best
weapon an employer has against employee wage claims is to follow all the wage
payment and recordkeeping rules to the letter. Then, when you have to open up
your files for employee inspection, there won’t be any surprises—for you or the
employee.
Now, here’s a look at
the payroll record inspection rules. Employers must permit current and former employees
to inspect or copy their own payroll records, as required by California Labor
Code Section 226(b). When you receive an oral or written request from a current
or former employee to inspect or copy his or her payroll records, you must comply
as soon as you can, but not more than 21 calendar days from the date you
received the request. You can require an employee who wants copies of the
records to pay the reproduction cost.
If you don’t comply with
the 21-day deadline for permitting a payroll records inspection, the employee who
made the request or the labor commissioner can come after you for a $750
penalty. An employee may also seek an injunction to force you to comply with an
inspection request, and you could be required to pay the individual’s court
costs and attorney’s fees.
It is important to note that the statute permits you to designate an
individual within the organization to whom requests must be directed. Thus, it
is wise to have a written policy, contained in your employee handbook, that
sets out the procedures for making a payroll records inspection request, including
to whom requests must be given, such as the human resources or payroll manager.