Employers should remember to take time to review their employee documentation, retention policies, and how this information is being saved on a periodic basis. Here are five record retention issues employers should audit as of April 2022:
1. Are employee time records maintained for at least four years?
The statute of limitations can reach back four years in wage and hour class actions under California law, and time records will be the primary issues in most cases. California law requires employers to track start and stop times for hourly, non-exempt employees. The law also requires employers to record the employee’s thirty-minute meal periods. The time system needs to be accurate. Employers need to be involved in the installation and setup of the system and not simply use the default settings for the hardware and software. Understand what the system is tracking and how it is recording the data. Employers should also have a complaint procedure in place and regularly communicate the policy to employees in order to establish an effective way to remedy any issues.
2. Are pay stubs and schedules backed-up and saved by the employer?
Under Labor Code section 226, employers are required to provide employees with pay stubs “semimonthly or at the time of each payment of wages.” Section 226(a) requires that employers keep a copy of the pay stubs for “at least three years.” As mentioned above, because the statute of limitations for labor code violations can extend back four years,...
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