• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

‘We lost our records’ is no excuse in pay cases

Get PDF file

by on
in HR Management

Do you have a method for making sure pay records are up-to-date, accurate and available? Remember, California law requires retaining pay records for three years.

Recent case: When Win Woo Trading was sued for allegedly underpaying employees, the company claimed it had lost its pay records during an office move more than a year before the litigation began.

The employees asked for sanctions against the employer, arguing that it had destroyed evidence. The company argued that its inadvertent loss happened before the lawsuit began.

The court was unimpressed, pointing out that California law places on employers an independent duty to retain “records showing when the employee begins and ends each work period, meal periods, daily hours worked and total wages paid per payroll period and applicable rates of pay for at least three years.” (Liu v. Win Woo Trading, No. 14-CV-02639, ND CA, 2016)

Leave a Comment