Keeping accurate personnel records for every employee can be a burdensome task; there are varying legal requirements in terms of what must be kept and also how long it must be kept. How do you keep it all straight?
In general, the records must be kept in indelible, typewritten or digital form for all employees. The records must be dated and kept on file at the place of employment or at a central location within California. In a CER webinar titled “What to Save, What to Shred for California Employers: What New Laws Say About Personnel Files,” Marc Jacuzzi outlined some tips for employers and gave some guidance in particular about the new personnel records requirements that have shown up lately. One such requirement is the personnel action notice upon hire.
Personnel Action Notice Upon Hire Requirement
In the webinar, Jacuzzi outlined that the new Personnel Action Notice Upon Hire is “part of California’s Wage Theft Protection Act that came effective on January 1 of this year. Under the Wage Theft Protection Act, all employers in the state of California – so this is everyone out there – has to meet these new requirements . . . you’re required to provide the employee and then keep a record of this Personnel Action Notice . . . it’s been codified under Section 2810.5 of the Labor Code.”
What does it require? Employers must provide a written notice to each employee upon hire that specifies:
- Rates and basis of pay (i.e., paid by the hour, salary, piece, commission, etc.)
- Allowances, if any, claimed as part of the minimum wage, including meal and lodging
- Regular payday designated by the employer
- Name of the employer, including any other names used by employer to conduct business
- Employer’s physical address and mailing address (if different) and telephone number
- Name, address, and telephone number of the employer’s workers’ compensation carrier
Jacuzzi explained that they can also ask for additional information as necessary.
Employers are also required to notify employees in writing of any changes to the information in the notice within 7 calendar days of the change, unless all changes are included on a timely wage statement or notice of the changes were provided in another writing required by law within 7 days of the change.
However, the notice requirement does not apply to employees exempt from overtime, or employees covered by collective bargaining agreements with certain provisions.
Jacuzzi explained that “this is an important new record; the record needs to be kept in accordance with the DLSE’s requirements (as far as how long you need to keep it, and that you need to continually update it). And, since you need to continually update it, it’s arguable that this is a record that needs to be kept throughout employment, on file, up-to-date.”
Do you have any “Personnel Action Notice Upon Hire” documents in your personnel records now?
To register for a future webinar, visit CER webinars.
Marc L. Jacuzzi, Esq., is a shareholder in the law firm of Simpson, Garrity, Innes & Jacuzzi (www.sgilaw.com). He advises clients regarding all aspects of the employer/employee relationship including hiring and termination, wage and hour requirements, employee classification, civil rights and discrimination issues, employee investigations, commission plans, employment contracts, employee handbooks and policies, confidential information agreements, reductions in force, leaves of absence, employment audits, M&A employment issues, violence in the workplace, and international employment issues.