K–14 classified employees: payment of wages: itemized statements.

AB 374

California Bills

20250AB__037496ENR INTRODUCED 2025-02-03 AMENDED_ASSEMBLY 2025-04-09 AMENDED_SENATE 2025-08-29 PASSED_ASSEMBLY 2025-09-10 PASSED_SENATE 2025-09-09 ENROLLED 2025-09-12 2025 AB ENR Introduced by Assembly Member Nguyen (Principal coauthor: Senator Cervantes) (Coauthors: Assembly Members Muratsuchi and Michelle Rodriguez) LEAD_AUTHOR ASSEMBLY Nguyen PRINCIPAL_COAUTHOR SENATE Cervantes COAUTHOR ASSEMBLY Muratsuchi COAUTHOR ASSEMBLY Michelle Rodriguez

An act to add Sections and to the Education Code, relating to classified employees. classified employees K–14 classified employees: payment of wages: itemized statements. Existing law requires the governing board of a school district and the governing board of a community college district, except as provided, to employ persons for positions not requiring certification qualifications or that are not academic positions, respectively, and to classify all of these employees and positions. Under existing law, those employees and positions are known as the classified service.

Existing law requires the governing board of any school district, including city boards of education, and the governing board of any community college district, including city boards of education, to fix and order paid the compensation of persons a part of the classified service, as provided.

Beginning with the 2026–27 school year, this bill would require a public school employer, defined to include the governing board of a school district, a school district, a county board of education, a county superintendent of schools, a charter school, an auxiliary organization, or a joint powers agency, as specified, and a community college district to (1) furnish to a classified school employee at the time of each payment of wages an accurate statement in writing and in a specified format that shows specified information, including, among other things, gross wages earned, all deductions, and all applicable hourly rates in effect during the payroll reporting period, as provided, (2) record the deductions made from the payment of wages and keep the record on file for at least years at a specified location, and (3) afford current and former classified school employees the right to inspect or receive a copy of records pertaining to their employment, as provided.

MAJORITY NO NO NO NO NO NO NO NO NO NO The people of the State of California do enact as follows:

SECTION 1. It is the intent of the Legislature to provide classified public school employees and classified community college district school employees with the same information guaranteed to private sector employees on their paychecks.

SEC. 2.

Section is added to the Education Code , immediately following

Section 45169 , to read: 45170. (a)

(1) Beginning with the 2026–27 school year, a public school employer, at the time of each payment of wages, shall furnish to a classified school employee an accurate itemized statement in writing showing all of the following: (

A) Gross wages earned. (

B) Except as provided in subdivision (d), the total hours worked by the employee. (

C) All deductions, provided that all deductions made on written orders of the employee may be aggregated and shown as one item. (

D) Net wages earned. (

E) The inclusive dates of the period for which the employee is paid. (

F) The name of the employee and only the last four digits of their social security number or an employee identification number other than a social security number. (

G) The name and address of the public school employer. (

H) All applicable hourly rates in effect during the payroll reporting period and the corresponding number of hours worked at each hourly rate by the employee, or the units of full-time equivalent. (I) (

i) The total hours of paid and unpaid leave taken during the payroll reporting period and the applicable hourly rates for any paid leave taken. (ii) The leave time described in clause (

i) may be reported separately on a supplemental itemized statement so long as it is provided at the same frequency as the statement of wages.

(2) The deductions made from the payment of wages shall be recorded in ink or other indelible form, properly dated, showing the month, day, and year, and a copy of the statement and the record of the deductions shall be kept on file by the public school employer for at least three years at the public school employer or at a central location within the State of California.

(3) The itemized statement shall be provided in at least one of the following formats: (

A) As a detachable part of the check. (

B) As a printed statement issued concurrently with direct deposit, provided it is readily accessible to a classified school employee. (

C) As a digital statement made available through a secure employee portal that allows a classified school employee to view, download, and print current and past wage statements at no cost to the employee, provided it is readily accessible to the employee. (

b) A public school employer that is required by this

section or any regulation adopted pursuant to this

section to keep the information required by subdivision (

a) shall afford current and former classified school employees the right to inspect or receive a copy of records pertaining to their employment, upon reasonable request to the public school employer. The public school employer may take reasonable steps to ensure the identity of a current or former classified school employee. If the public school employer provides copies of the records, the actual cost of reproduction may be charged to the current or former classified school employee. (

c) A public school employer who receives a written or oral request to inspect or receive a copy of records pursuant to subdivision (

b) pertaining to a current or former classified school employee shall comply with the request as soon as practicable, but no later than calendar days from the date of the request. Impossibility of performance, not caused by or a result of a violation of law, shall be an affirmative defense for a public school employer in any action alleging a violation of this subdivision. A public school employer may designate the person to whom a request under this subdivision will be made. (

d) An itemized wage statement furnished by a public school employer pursuant to subdivision (

a) shall not be required to show the classified school employee’s hourly rates or total hours worked if any of the following apply:

(1) The employee’s compensation is based on a monthly or yearly salary.

(2) The employee is exempt from the payment of minimum wage and overtime under any of the following: (

A) The exemption for persons employed in an executive, administrative, or professional capacity provided in any applicable order of the Industrial Welfare Commission. (

B) The exemption for outside salespersons provided in any applicable order of the Industrial Welfare Commission. (

C) The overtime exemption for computer software professionals paid on a salaried basis provided in

Section 515.5 of the Labor Code. (

D) The exemption for individuals who are the parent, spouse, child, or legally adopted child of the public school employer provided in any applicable order of the Industrial Welfare Commission. (

e) For purposes of this section, the following

definitions apply: (1) “Classified school employee” means a person employed on a full-time or a part-time basis as a classified school employee at a public school employer. (2) “Public school employer” has the same meaning as defined in

Section 3540.1 of the Government Code.

SEC. 3.

Section is added to the Education Code , immediately following

Section 88168 , to read: 88169. (a)

(1) Beginning with the 2026–27 school year, a community college district, at the time of each payment of wages, shall furnish to a classified school employee an accurate itemized statement in writing showing all of the following: (

A) Gross wages earned. (

B) Except as provided in subdivision (d), the total hours worked by the employee. (

C) All deductions, provided that all deductions made on written orders of the employee may be aggregated and shown as one item. (

D) Net wages earned. (

E) The inclusive dates of the period for which the employee is paid. (

F) The name of the employee and only the last four digits of their social security number or an employee identification number other than a social security number. (

G) The name and address of the community college district. (

i) The total hours of paid and unpaid leave taken during the payroll reporting period and the applicable hourly rates for any paid leave taken. (ii) The leave time described in clause (

i) may be reported separately on a supplemental itemized statement so long as it is provided at the same frequency as the statement of wages.

(2) The deductions made from the payment of wages shall be recorded in ink or other indelible form, properly dated, showing the month, day, and year, and a copy of the statement and the record of the deductions shall be kept on file by the community college district for at least three years at the community college district or at a central location within the State of California.

(3) The itemized statement shall be provided in at least one of the following formats: (

A) As a detachable part of the check. (

B) As a printed statement issued concurrently with direct deposit, provided it is readily accessible to a classified school employee. (

b) A community college district that is required by this

section or any regulation adopted pursuant to this

section to keep the information required by subdivision (

a) shall afford current and former classified school employees the right to inspect or receive a copy of records pertaining to their employment, upon reasonable request to the community college district. The community college district may take reasonable steps to ensure the identity of a current or former classified school employee. If the community college district provides copies of the records, the actual cost of reproduction may be charged to the current or former classified school employee. (

c) A community college district who receives a written or oral request to inspect or receive a copy of records pursuant to subdivision (

b) pertaining to a current or former classified school employee shall comply with the request as soon as practicable, but no later than calendar days from the date of the request. Impossibility of performance, not caused by or a result of a violation of law, shall be an affirmative defense for a community college district in any action alleging a violation of this subdivision. A community college district may designate the person to whom a request under this subdivision will be made. (

d) An itemized wage statement furnished by a community college district pursuant to subdivision (