AB 1355 Will Allow Employers to Send Employees Required Information about Unemployment Insurance and Taxes via Email if Employee Opts-In

Assembly Bill (“AB”) 1355 becomes effective on January 1, 2024. The bill authorizes employers to provide specified documents related to benefit claims, such as unemployment insurance, and California earned income tax credits, by email, if the employee opts into receipt of electronic notification.

Existing law requires employers to provide individuals with copies of information related to claims for benefits, such as unemployment insurance, when they become unemployed. Additionally, an employer must furnish employees with an accurate itemized statement in writing semimonthly or at the time of each payment of wages to an employee. Existing law also requires employers to notify employees of their potential eligibility for income tax filing assistance programs and state and federal antipoverty tax credits, including the federal and California earned income tax credits, by handing specified documents directly to the employee or mailing the specified documents to the employee’s last known address twice annually.

As of 2020, approximately 4.3 billion people (~51% of the world’s population) are active email users. However, despite the population’s increased reliance on electronic communication, employers in California are still required to deliver important information regarding employee’s wages, benefits, and eligibility for benefits via traditional mail.

Unions can ensure Employers comply with this new law, and request to bargain over any effects of its implementation.

AB 1355 modernizes the Revenue and Taxation Code to allow employees to opt into receiving important information regarding wages, benefits, and eligibility for benefits, such as unemployment insurance and earned income tax credits, via electronic communication. Allowing employees to receive this important information via the predominant method of communication in the modern world will make it easier for employees to access important benefits that can improve their lives financially.

For further information, contact your usual attorney.