BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  AB 1707|
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                                 THIRD READING


          Bill No:  AB 1707
          Author:   Assembly Labor and Employment Committee
          Amended:  6/1/07 in Assembly
          Vote:     21

           
           SENATE LABOR & INDUSTRIAL RELATIONS COM.  :  3-2, 7/11/07
          AYES:  Migden, Kuehl, Padilla
          NOES:  Wyland, Ackerman

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  47-31, 6/6/07 - See last page for vote


           SUBJECT  :    Private employment

           SOURCE :     California Rural Legal Assistance Foundation


           DIGEST  :    This bill revises requirements of existing law  
          concerning an employees right to inspect personnel records.

           ANALYSIS  :    Existing law allows employees and various  
          government agencies to have the right to access certain  
          records in certain circumstances.   Every employee has the  
          right to inspect the personnel records that their employer  
          maintains relating to his/her performance or to any  
          grievance concerning the employee.  The law also does the  
          following:

          1.Requires the employer to make the contents of those  
            personnel records available to the employee at reasonable  
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            intervals and at reasonable times. 

          2.Gives employers three options with regard to storing and  
            allowing access of records:

             A.    Keeps a copy of each employee's personnel  
                records at the place where the employee reports to  
                work.

             B.    Makes the employee's personnel records available  
                at the place where the employee reports to work  
                within a reasonable period of time following the  
                employee's request.

             C.    Permits the employee to inspect the personnel  
                records at the location where the employer stores  
                the personnel records, with no loss of compensation  
                to the employee.

          3.Gives the Labor Commissioner the discretion to adopt  
            regulations that determine the reasonable times and  
            reasonable intervals for private employers at which they  
            must provide these personnel records.

          4.Specifies that an employee's right to view his/her  
            personnel file doesn't apply to the following:

             A.    Records relating to the investigation of a  
                possible criminal offense.

             B.    Letters of reference.

             C.    Ratings, reports, or records that were obtained  
                prior to the employee's employment, prepared by  
                identifiable examination committee members, or  
                obtained in connection with a promotional  
                examination.

             C.    Other specified public employees (e.g.,  
                employees subject to the Public Safety Officers  
                Procedural Bill of Rights). 

          Under current law, an employee doesn't have an absolute  
          right to a copy of his/her entire personnel records,  







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          however, he/she does have a right to a copy of any document  
          the employee has signed relating to obtaining or holding  
          employment (subject to a reasonable fee for each copy).

          Existing law also requires employers to maintain  
          comprehensive payroll records and make them available to  
          current or former employees, to inspect or copy, upon  
          reasonable request.  The employer must comply with the  
          request within 21 days of the request.  Failure by the  
          employer to comply entitles the current or former employee,  
          or the Labor Commissioner, to recover a penalty of $750.00.  
           An employee may also bring an action in court to require  
          compliance with the request and, in any such action, is  
          entitled to recover costs and reasonable attorney's fees.   
          (Labor Code  226)   
           
           This bill revises requirements of existing law concerning  
          an employee's right to inspect personnel records.  
          Specifically, this bill:

          1. Allows both current and former employees, and their  
             representative, to both inspect and copy their personnel  
             records. 

          2. Allows the employer to take steps to verify the identity  
             of a current or former employee, or their  
             representative, as specified. 

          3. Requires an employer to maintain personnel records for  
             at least three years following an employee's termination  
             of employment. 

          4. Establishes a specific 21-day timeframe for an employer  
             to comply with an employee's request to inspect their  
             personnel records.

          5. For current employees, requires an employer to make the  
             employee's personnel records available for inspection,  
             or provide copies as requested by the employee, at the  
             place where the employee reports to work, or at another  
             location agreeable to the employer and requester without  
             loss of compensation to the employee.  

          6. For former employees, requires an employer to make the  







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             employee's personnel records available for inspection,  
             or provide copies thereof, at the location where the  
             employer stores the records.  A former employee may  
             receive copies by mail if he or she reimburses the  
             employer for actual postal expenses. 

          7. Allows the employer, prior to making records available  
             for inspection or providing copies, to redact the name  
             of any non-supervisory employee contained therein.  

          8. Allows a current or former employee, or the Labor  
             Commissioner, to:

             A.    Recover a $750 penalty for non compliance from  
                the employer.

             B.    Allows them to bring an action for injunctive  
                relief to ensure compliance, and entitles them to  
                costs and reasonable attorney's fees.

          9. Provides that a violation of the provisions in this  
             section of code would constitute an infraction.   

           Comments
           
          Current law allows employees to have access to certain  
          records under certain circumstances, among which is access  
          to payroll records.  An employer must make payroll records  
          available, within 21 days of a written request, to an  
          employee in order for inspection and copying.  If an  
          employer does not comply, they are imposed a $750.00  
          penalty, and an employee may bring an action in court to  
          require compliance.  With regard to personnel records of an  
          employee, the law is not as explicit about access.  This  
          bill attempts to ensure that current and former employees  
          have a right to inspect and copy their personnel files in  
          order to defend their rights under important state and  
          federal statutes.  The bill attempts to do this by  
          clarifying and adding provisions to current law pertaining  
          to personnel records that will conform it to similar  
          protections already in existing law dealing with payroll  
          records.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    







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          Local:  No

           SUPPORT  :   (Verified  8/20/07)

          California Rural Legal Assistance Foundation
          American Federation of Television and Radio Artists,  
          AFL-CIO 
          California Conference Board of the Amalgamated Transit  
          Union
          California Labor Federation, AFL-CIO
          California Professional Firefighters 
          California State Employees Association 
          California Teamsters Public Affairs Council
          Consumer Attorneys of California
          Engineers and Scientists of California, IFPTE Local 20
          International Longshore and Warehouse Union
          Legal Aid Society - Employment Law Center
          Professional and Technical Engineers, IFPTE Local 21
          UNITE HERE!
          United Food and Commercial Workers Union, Western States  
          Council

           OPPOSITION  :    (Verified  8/20/07)

          Associated Builders and Contractors of California 
          California Association of Public Authorities for IHSS 
          California Chamber of Commerce
          California Employment Law Council 
          California Hospital Association 
          California Manufacturers & Technology Association 
          Department of Finance

           ARGUMENTS IN SUPPORT  :    According to the author's office,  
          it is a fundamental right that employees must have access  
          to their personnel records in order to properly defend  
          their rights under applicable employment laws.  However,  
          existing law is extremely vague and unclear, allowing  
          unscrupulous employers and their attorneys to use this fact  
          to their advantage to hide information that otherwise would  
          be disclosed.  The author's office argues that this type of  
          uncertainty disadvantages employees, who have not seen the  
          records and therefore are not able to question the  
          employer's adverse employment actions against them. 








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          The California Rural Legal Assistance Foundation (CRLAF)  
          argues that workers with a limited understanding of English  
          have no real "access" to their personnel records when  
          access is limited to inspection only.  Proponents support  
          the requirement under this bill that permits an employee to  
          bring a designated representative to review personnel  
          records. This is especially important for low-wage workers  
          who may lack the language or literacy skills to do a review  
          alone.  Proponents believe a representative can help make  
          sure the worker fully understands the information in the  
          file, as well as his or her right to refute it.  

          According to the author's office, several years ago, Labor  
          Code Section 226 was amended to improve employees' rights  
          to inspect payroll records to ensure that they are being  
          compensated in accordance with existing law.  This bill  
          simply conforms the protections for personnel records to  
          those that currently exist for payroll records.  The  
          author's office argues that there is no logical distinction  
          for providing employees with such protections for payroll  
          records, but not for personnel records

           ARGUMENTS IN OPPOSITION  :    Opponents raise several  
          concerns about this bill stating that several of the  
          requirements proposed are unreasonable and will simply  
          expose the employer to costly litigation to both the public  
          and private sector.  Opponents are concerned that this  
          proposal may place undue burden on employers to change  
          their current recordkeeping and document access processes  
          and procedures.  For example, they argue that the 21 day  
          requirement to comply with a request to inspect or copy  
          files does not take into account the amount of time it  
          might take to get the request to the appropriate department  
          within a large organization.  Opponents argue that several  
          of the large companies store personnel files in remote  
          locations, centralized offices, some even outside of the  
          state.  Also, many employers maintain personnel records  
          electronically in a central location, and may provide  
          access electronically.  This bill does not recognize this  
          technology.  

          Opponents state that while payroll records inherently  
          relate only to the employee, information in personnel files  
          relating to performance and grievances may well involve  







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          other employees.  Allowing employees to copy and remove  
          these records, without the many protections in the  
          litigation discovery process, could subject other employees  
          to harm, and once the records are out of the control of the  
          employers, the dissemination of these records cannot be  
          controlled.  Also, opponents argue that current law does  
          not require an employer to maintain personnel records nor  
          does it define what constitutes a "personnel record."   
          Because there is no uniform definition of a "personnel  
          record," the employer is left to guess what documents must  
          be provided leaving the employer wide open to being  
          harassed or sued.   

          The California Association of Public Authorities for IHSS  
          (CAPA) has taken an oppose unless amended position on the  
          bill arguing that approximately 1/3 of the IHSS workforce  
          turns over every year due to low wages and inadequate  
          benefits.  They argue that it would be a real challenge for  
          Public Authorities to warehouse and access the millions of  
          employee records that would accumulate over a ten-year  
          period.  CAPA would like the bill to be amended to carve  
          out the wage and job classification records of IHSS  
          providers.  
           
           ASSEMBLY FLOOR  : 
          AYES:  Arambula, Bass, Beall, Berg, Brownley, Caballero,  
            Charles Calderon, Carter, Coto, Davis, De La Torre, De  
            Leon, DeSaulnier, Dymally, Eng, Evans, Feuer, Fuentes,  
            Galgiani, Hancock, Hayashi, Hernandez, Huffman, Jones,  
            Karnette, Krekorian, Laird, Leno, Levine, Lieber, Lieu,  
            Ma, Mendoza, Mullin, Nava, Parra, Portantino, Price,  
            Richardson, Ruskin, Salas, Saldana, Solorio, Swanson,  
            Torrico, Wolk, Nunez
          NOES:  Adams, Aghazarian, Anderson, Benoit, Berryhill,  
            Blakeslee, Cook, DeVore, Duvall, Emmerson, Fuller,  
            Gaines, Garcia, Garrick, Horton, Houston, Huff, Jeffries,  
            Keene, La Malfa, Maze, Nakanishi, Niello, Plescia, Sharon  
            Runner, Silva, Smyth, Spitzer, Strickland, Tran, Walters
          NO VOTE RECORDED:  Soto, Villines


          NC:do  8/22/07   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE







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