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New Record Keeping, Wage Theft, and Workplace Posting Rules for 2022 in California

By Jennifer Grady, Esq.

With a new year comes a slew of new employment laws for California business owners. See below for updates to the record keeping and posting requirements, and wage theft determinations that all can apply to employers across all industries. Read on to see if your business may be affected.

1. Employee Personnel Records To Be Held For Four Years and DFEH Procedural Updates

Senate Bill 807 extends the personnel record keeping requirement for employers from two years to four years to better align with the statute of limitations available to workers to file claims of unlawful employment discrimination. In the event that an employer is notified of a claim or complaint filed to the Department of Fair Employment and Housing (DFEH), the personnel records must be held until the matter is resolved.

The bill also allows DFEH up to two years to conduct an investigation and issue a right-to-sue notice for employment discrimination complaints.

In addition, the statute of limitations is paused for individuals who wish to file a civil action for violations while the DFEH investigates or determines an action on a complaint.

2. Emailing of Mandatory Workplace Postings

Senate Bill 657 clarifies that in addition to physically displaying or posting mandatory workplace postings, employers can also email copies of the documents to their employees. However, emails of workplace postings do not exempt an employer from their obligation to have a physical posting in an accessible location at the workplace.

3. Intentional Wage Theft to Be Punishable as Grand Theft

Assembly Bill 1003 established stricter regulations for employers to prevent intentional wage theft. Intentional wage theft, which includes gratuities, in the amount greater than $950 for one employee or independent contractor, or $2,350 for two or more employees or independent contractors, by a single employer within a 12-month period is to be considered grand theft. Grand theft can result in misdemeanor or felony charges, which means 1 or more years of jail time for the offender.

If you need more information on how these updates may apply to your business, we encourage you to contact our office at info@gradyfirm.com, or call us at (949) 798-6298.

To learn more about ensuring your business is compliant with state and local laws, schedule a complimentary 15-minute consultation with The Grady Firm’s attorneys; call +1 (949) 798-6298; or fill out a Contact Request Form.

As outside counsel for growing and international companies with a presence in California, The Grady Firm attorneys provide the following services;

  • Assistance with interpreting emergency COVID-19 legislation as it affects your business;

  • Counsel employers on staff changes and draft Notices of Reduced Hours, Furloughs, or Layoffs;

  • Draft Severance Agreements;

  • Act as I-9 agent and I-9 audit preparation or defense;

  • Employee v. independent contractor classification analysis;

  • Assistance with converting independent contractors to employees;

  • On-site, classroom-style Sexual Harassment training for employees and supervisors;

  • “Experiential” supervisor training in which managerial employees practice processing a harassment complaint and commencing an investigation in pairs with other trainees.

  • Draft and review Employee Handbooks, arbitration agreements, and Anti-Harassment policies;

  • Employee personnel file audits;

  • Litigation/labor claim defense.

The firm’s attorneys are licensed to practice employment law in California.

This article is for informational purposes only, and does not constitute legal advice or create an attorney-client relationship. This article does not make any guarantees as to the outcome of a particular matter, as each matter has its own set of circumstances and must be evaluated individually by a licensed attorney.


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