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The Honorable Arnold Schwarzenegger Governor, State of California State Capitol Sacramento, CA 95814 Dear Governor Schwarzenegger: I request your VETO of AB 435 (Brownley), which unreasonably extends the statute of limitations to file wage discrimination claims and requirements for maintaining paperwork, increasing employer exposure to untimely lawsuits. The unreasonable extension of the statue of limitations for employees to file a wage claim is unwarranted. Current law provides two years for an employee to file a wage claim and receive not only back wages, but also interest and liquidated damages. This bill doubles the statue of limitations currently allowed. This increase in the timeframe exposes employers to increased liability in penalties and results in extending unpredictability for businesses’ forecasting. Imposing new employer liabilities ultimately leads to increasing the cost of doing business in California. The time frame required to maintain records should be directly related to the need to reference those records for any claims or complaints of violations. Current law requires employers to maintain records for at least two years – the time frame in which an employee can file a wage claim. The proposed recordkeeping time frame of five years is overly burdensome and unwarranted. Employers may choose to keep their records for longer than two years for added protection; however mandating five years to maintain records is unreasonable. For most employers this would result in mountains of paperwork! For these and other reasons, I request your VETO of AB 435 (Brownley).