A "confidential employee" is defined by California law as "any employee who, in the regular course of his duties, has access to or possesses information relating to his employer's employer-employee relations." Under the auspices of the Association of California Community College Administrators, a four-part study of confidential employees was conducted to: (1) determine district policies in relation to these employees; (2) obtain information from confidential employees on their roles and attitudes; (3) inventory confidential positions; and (4) ascertain administrators' perceptions on the role and organization of confidential employees. Responses from 61 of 70 districts surveyed indicated that 67% of these districts did not have separate policies regarding confidential employees, and 92% did not have a grievance procedure for them. A separate questionnaire was sent to 450 confidential employees, and responses from 179 showed 94% to be females; that the majority were negative in their perceptions of the designation "confidential" and its impact; and that they felt alienated from their peers and concerned about their lack of representation. The inventory of confidential positions revealed that 328 of 490 confidentials polled were in secretarial positions and 9.3% in personnel capacities. Administrators varied widely in their perceptions of confidentials as an adjunct to the management team. Recommendations and the questionnaires are included. (HB)