Committee advances bill to require detailed pay stubs for classified school employees

The California State Senate Committee on Labor, Public Employment and Retirement voted to send AB 374 to the Committee on Appropriations after debate over implementation details and payroll-system complexity. AB 374 would require school districts and community colleges to provide classified employees — such as custodians, bus drivers and food‑service workers — with pay stubs that clearly list hours worked, pay rate and leave time.

Assemblymember Nguyen, the bill's author, told the committee that the measure "is about respecting the people who keep our schools running, giving them access to basic reliable information about how they're paid." Nguyen said the author and sponsor are working with employer groups and have "agreed in principle to a few key amendments" to accommodate reporting of leave time and districts with complex or shared payroll systems.

Supporters, including representatives of the California School Employees Association and San Juan Unified School District, described practical problems the bill is intended to solve. Adara Clark Gunn, a data and compliance technician for special education and president of San Juan CSEA Chapter 127, testified: "Many of our classified employees live paycheck to paycheck when something goes awry with their monthly compensation," and that clearer pay stubs would reduce follow‑up errors and administrative cost.

Opponents and stakeholders representing school administrators and community colleges said they endorse the bill's purpose but warned of implementation and accuracy risks. Dorothy Johnson of the Association of California School Administrators said the group "wholeheartedly agree[s] with where this bill is trying to go," but raised concerns that converting some salary elements to hourly equivalents or reconciling separate leave and payroll systems could create "unintended consequences" and inaccurate information for employees. Crystal Padilla of the Community College League of California asked that the bill avoid applying Labor Code section 515 to monthly salaried community college classified employees and recommended changes to how the payroll period is defined.

Committee members pressed the author on whether outstanding issues could be resolved. Nguyen said the office has been "very flexible" in negotiations and is continuing to work with district and college representatives on implementation details. Committee members repeatedly volunteered to assist in negotiations on technical fixes.

Action: Senator Laird moved the item. The committee recorded aye votes from Senators Smallwood Cuevas, Strickland, Durazo, Laird and Cortese. The motion to pass AB 374 to the Committee on Appropriations carried (5–0).

Why it matters: Supporters said clearer pay records would help employees verify pay and reduce administrative errors that cost districts and workers; opponents urged more time to resolve payroll‑system and reporting complexities to avoid confusing or inaccurate pay information.

What remains: The author and stakeholders will continue negotiating technical amendments, including how to treat monthly salaried employees, whether Labor Code section 515 language should be included or removed for certain employees, and how leave time should be reported when payroll systems are separate.