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Wednesday, January 21, 2026

Why Smart California Employers Are Treating Employee Data as an Asset in 2026 - California Employment Law Report

For most California employers, employee time and pay data has historically been treated as a legal obligation—something you keep because the law requires it, not because it creates value.

That mindset needs to change in 2026.

After years of defending employers in wage-and-hour class actions and PAGA cases, I have seen firsthand how employee data can either become an employer’s greatest liability or its strongest asset. The difference is no longer about company size or resources—it is about whether employers are using modern tools, including AI, to unlock the value of the data they already have.

Here are five reasons why this shift matters now more than ever.

1. Litigation Exposed Just How Broken the Old System Was

One of the primary reasons I became involved with Scaled Comp is simple: I saw how broken—and inefficient—the old approach was.

When employers were sued, we often had to:

  • Manually review thousands of PDF timecards
  • Reconstruct meal and rest break data by hand
  • Calculate exposure using spreadsheets built from incomplete records
  • Or, in some cases, physically go through boxes of paper records and scan them just to create a usable digital file

This process was painfully slow, extraordinarily expensive, and created unnecessary risk. By the time data was analyzed, employers were already on their back foot—reacting instead of defending.

What struck me most was that this kind of analysis should not be reserved only for companies with massive IT teams and unlimited...



Read Full Story: https://news.google.com/rss/articles/CBMizAFBVV95cUxNa2poc2hXTkxELU52ZHU1QlZm...