Preservation of Employee Employment Records

Pursuant to Labor Code sections 1174(d) and 226, an employer is obligated to maintain employment records, including payroll records showing the hours worked daily by and the wages paid to employees employed at the establishment. Violation of section 1174 is punishable by a fine, imprisonment or civil penalty of $500. In anticipation of a civil case an employer is required to take all necessary steps to preserve documents and electronic information relating to the employment of an employee or potential plaintiff, including but not limited to payroll records, time records, personnel files, e-mails, logs of computer system activity, word processing files, and other employment records, until such time as the dispute is resolved.