In the State of California, your personnel files are not as private as you might think. Although many employees don't know it, they are entitled to look at their files. If you're not careful, this issue can cause you some severe headaches.

Take Care to Avoid Embarrassment

Because an employee may one day look at the file, pay close attention to what goes into it. If you were to be sued, your careless comments could be blown up onto a four foot-high display board in front of a jury. Never put in unsubstantiated derogatory comments or other unnecessary information. Comments about performance should always be discussed with the employee and accurate documentation of these discussions, warnings, etc., should be placed in the file. Imagine an employee's shock and anger if he first learns about your criticisms from looking in the personnel file.

Who Can See the Files

Under the California Labor Code, current and former employees have the right to inspect their personnel files. This includes workers who have been laid off or who are on a leave of absence. You're not required to show personnel files to job applicants, employees' relatives, union representatives or lawyers, unless the request includes a court subpoena.

When and Where

Inspections should take place during regular business hours, in the office where personnel records are usually kept. You must make the files available within a "reasonable time" of the employee's request. The employee must be given sufficient time to read the file.

What Employees Can Examine

Employees can read any records that are used or previously have been used to determine the "employee's qualifications for employment, promotion, additional compensation, termination, or other disciplinary action." This includes a whole ranges of items, such as employment applications, payroll authorization forms, attendance records, layoff notices, ratings, discipline records, etc. You are not required to disclose letters of recommendation or investigation records regarding a possible criminal offense.

Copying and Note-Taking

Employees can inspect the records and take notes. You are only required to provide copies of documents that are signed by the employee, such as job applications, leave requests, etc. While you don't have to give out copies of other documents, it might be more practical to supply copies, rather than allowing hours of note-taking.

Employers' Rights

• You can require an appointment and written request for each inspection.

• You can and should have someone present to monitor the inspection, since you don't want anything altered, added or removed from the file.

• You can limit the inspection to once each year. The only exception is when an employee has reasonable cause to believe that the file was altered in a way that would adversely affect the employee, or if the file has information about an ongoing investigation that affects the employee.

• You can require that an inspection occur only during an employee's free time.

Special Rules for Investigation Reports

There are special rules regarding reports of investigators who shop, buy or order goods in order to observe and review an employee's work. In these instances, you must provide the employee with a copy of the investigator's report before disciplining or discharging the employee.