California Employment News: SB 513 and Personnel File Requirements

Why It Matters

By standardizing personnel file requirements, SB 513 reduces legal ambiguity and protects employee rights, while imposing new compliance obligations on California employers.

Key Takeaways

• SB 513 effective Jan 1 2026 in California
• Requires specific documents in employee personnel files
• Employers must retain files for at least three years
• Violations may trigger penalties under Labor Code
• Legal counsel advises updating HR policies now

Pulse Analysis

California has long been a testing ground for progressive workplace legislation, and SB 513 continues that trajectory by codifying what must reside in an employee’s personnel file. The law emerged from mounting disputes over incomplete records that hampered employee claims and employer defenses. By explicitly listing required documents—application forms, wage statements, performance reviews, disciplinary notices, and termination paperwork—the statute aims to create a uniform evidentiary baseline across the state’s diverse industries.

For human‑resources teams, the practical impact is immediate. Existing filing systems must be audited, and any gaps filled before the three‑year retention deadline lapses. Digital record‑keeping platforms are now essential, not optional, as they streamline compliance, enable rapid employee access, and support audit trails. Moreover, the law’s inspection provision obliges employers to make files readily available upon request, prompting a shift toward more transparent, organized documentation practices.

Compliance is not merely a bureaucratic exercise; it carries financial and reputational stakes. Failure to meet SB 513’s standards can trigger civil penalties, amplify litigation risks, and erode employee trust. Proactive steps—such as revising HR policies, training managers on documentation protocols, and leveraging secure cloud storage—help mitigate these risks. As other states watch California’s regulatory experiments, SB 513 may set a precedent, nudging nationwide employers toward more rigorous personnel file management.