California Employers: Managing Employee Record Requests and Protecting Sensitive Files in 2025

Introduction

California’s legal landscape places rigorous demands on employers when it comes to handling employee information. Beyond simply producing personnel files or payroll documents upon request, business owners must comply with strict statutory deadlines, safeguard privacy, and thoughtfully segregate sensitive records. Violations risk not only substantial statutory penalties but also serious privacy enforcement actions and damage to employer reputation. This guide provides a deep dive into employer duties under Cal. Lab. Code §§ 1198.5, 226, and 432, California’s evolving privacy laws, and best practices for document management.

Personnel File Requests: Cal. Lab. Code § 1198.5

Current and former California employees, as well as their authorized representatives, have a clear right to inspect or obtain copies of personnel records relating to their job performance or workplace grievances (Cal. Lab. Code § 1198.5 (West 2025)). Employees must make their requests in writing. In turn, the employer is required to act within thirty calendar days, providing all non-exempt documents and charging no more than the actual cost of reproduction.

Compliant personnel files should contain employment applications, job descriptions, pay authorizations, performance evaluations, disciplinary records, attendance histories, and relevant training documentation. It is equally crucial that employers understand which records are explicitly exempt from production: investigatory materials relating to criminal offenses, reference letters, and some examination documents are not subject to inspection under the statute.

Employers who fail to provide personnel files within the statutory timeline can be fined $750 per violation, with enforcement available through both the Labor Commissioner and private action (Cal. Lab. Code § 1198.5(k)). Prevailing employees may also recover costs, reasonable attorney’s fees, and injunctive relief (Cal. Lab. Code § 1198.5(l)). Records should be maintained for a minimum of three years post-separation and, critically, all medical and disability information must be excluded from standard personnel files and maintained in secure, segregated files (Cal. Code Regs. tit. 2, § 11013).

Payroll Record Requests: Cal. Lab. Code § 226

Employees also have a statutory right to receive copies of payroll and wage records, including pay stubs, time sheets, and payroll ledgers (Cal. Lab. Code § 226 (West 2025)). Requests can be made orally or in writing, and the employer must respond within twenty-one days, charging only for the actual cost of duplication.

Payroll records must accurately document hours worked, wage rates, all deductions, and compliance with meal/rest break laws. Failing to maintain or produce these records can expose the employer to a $750 penalty per incident, enforceable by both the employee and the Labor Commissioner (Cal. Lab. Code § 226(f)). Payroll records must be retained for at least three years (Cal. Lab. Code § 1174), and it is best practice to regularly audit for accuracy to mitigate exposure in a wage-and-hour dispute or class action.

Sensitive payroll-related documents—including wage garnishment and child support orders—should always be kept separate from general payroll and personnel records. Federal law further requires that I-9 employment eligibility forms are maintained apart from both payroll and personnel files (8 C.F.R. § 274a.2).

Requests for Signed Documents: Cal. Lab. Code § 432

Section 432 of the Labor Code entitles employees to receive copies of any employment-related document they have signed, such as contracts, policy acknowledgments, arbitration agreements, or commission plans. Although there is no explicit deadline or monetary penalty for noncompliance, prompt fulfillment is crucial—particularly when such documents may be central to defending against employee claims or government investigations. Delays can undermine the employer’s position or credibility in disputes involving discipline, termination, or wage practices.

Well-organized processes for collecting and retrieving signed documents are important. Ideally, these should be cataloged and accessible upon request, regardless of how much time has passed since employee separation. Producing these documents quickly can often resolve disputes or support summary dismissal of unfounded claims.

Managing Sensitive and Segregated Records

Compliance with statutory obligations under the Labor Code is only part of effective record management. California regulations and federal law require certain records—especially those containing sensitive information—to be physically and administratively segregated from general personnel and payroll files.

Medical and disability documentation must be maintained in a secure file, accessed only by individuals responsible for ADA or FEHA compliance (Cal. Code Regs. tit. 2, § 11013). Employers must also store I-9 forms apart from all other records to comply with federal immigration law (8 C.F.R. § 274a.2). Background check reports and consumer credit information are subject to the Fair Credit Reporting Act (FCRA) and should be limited to compliance officials. EEO self-identification forms, workplace investigation materials, and similar compliance documentation have distinct privacy requirements and should never be kept in general files. Financially sensitive communications—such as wage garnishments and child support orders—also demand separate, confidential storage, safeguarding against inadvertent disclosure.

Layered atop these requirements, the California Consumer Privacy Act (CCPA), as amended by the California Privacy Rights Act (CPRA), requires employers to treat employee information as protected personal data, providing privacy notices, reasonable data security, and protocols for access and correction rights (Cal. Civ. Code §§ 1798.100 et seq. (West 2025)). Mishandling sensitive employee information, improper access, or unauthorized disclosure may trigger California Privacy Protection Agency enforcement and substantial statutory penalties.

Conclusion

California employers who diligently fulfill record requests under Labor Code §§ 1198.5, 226, and 432—and who properly segregate and protect sensitive documents—achieve more than basic compliance. They insulate their businesses from regulatory penalties, safeguard employee privacy, and build trust with their workforce. Every employer should establish clear, written protocols for request handling, conduct regular HR audits, and ensure that staff is trained to respect deadlines, privacy, and record segregation requirements. When in doubt, consult with labor counsel to stay ahead of statutory developments and avoid costly mistakes. By staying proactive and organized, California business owners can confidently meet their recordkeeping obligations and model best-in-class stewardship.

All statutory references: Cal. Lab. Code §§ 1198.5, 226, 432 (West 2025); Cal. Code Regs. tit. 2, § 11013; 8 C.F.R. § 274a.2; Cal. Civ. Code §§ 1798.100 et seq. (West 2025).