California employers have extensive obligations under the Labor Code to create and maintain accurate time records and pay stubs. The Labor Code itself doesn’t prescribe a specific format or technology, but the way employers handle these records has only grown more important — particularly after the 2024 Private Attorneys General Act (PAGA) reform, which ties penalty caps to whether an employer can show “reasonable steps” toward compliance. Solid, accessible records are now one of the strongest pieces of evidence employers can put in front of a court or the Labor Commissioner.
This Friday’s Five covers five issues every California employer should think through when it comes to electronic timekeeping and pay stubs.
1. Is there a required type of timekeeping system?
No. California law does not mandate any particular timekeeping system, and pen-and-paper records remain legally permissible. The key requirement is that records be kept in “ink or other indelible form” — meaning entries cannot be erased, altered, or made to disappear.
That said, most employers — even those with only a handful of employees — have moved to electronic systems for good reason. Electronic timekeeping reduces calculation errors, creates a clear audit trail for any time edits, and integrates with meal break flagging, daily and weekly overtime calculations, and split shift premium tracking. In the current enforcement environment, the ability to pull a clean, organized report of every shift, break, and...
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