In case you haven’t read Part 1 of my HRTools Insight series, “Record Retention Guidelines: Part 1, Pre-Employment Records,” applicant records are discussed as a part of the record retention process. This post focuses on record retention guidelines for the period after the applicant is hired.
Record retention is somewhat complicated due to two conflicting needs or priorities:
- An employer must access employee records for business processes and legal requirements.
- An employee needs to trust their personal information is handled in a confidential and private manner.
Given these conflicting priorities, how should employers develop their record retention guidelines after candidates are hired? In addition to applicant records collected during the recruiting process, certain records should be maintained in a secure or locked area throughout and after an employee’s tenure at the company.
Note: As I explained in Part 1, there are numerous federal and state laws affecting employee recordkeeping (see "Important Update" below). Therefore, employers should consult with legal counsel to make sure they remain in compliance.
Personnel Files
Meanwhile, here is a list of items that are generally collected for employees’ personnel files:
- job description for the position
- job application and/or resume
- offer letter
- employment references
- IRS Form W-4 (the Employee's Withholding Allowance Certificate)
- receipt or signed acknowledgment of employee handbook
- performance evaluations
- forms relating to employee benefits
- forms providing next of kin and emergency contacts
- complaints from customers and/or coworkers
- awards or citations for excellent performance
- records of attendance or completion of training programs
- warnings and/or other disciplinary actions
- notes on attendance or tardiness
- any contract, written agreement, receipt, or acknowledgment between the employee and the employer (such as an employment contract, or an agreement relating to a company-provided car, etc.), and
- documents relating to an employee’s separation from the company (such as reasons why they left or were terminated, unemployment documents, insurance continuation forms, and so on).
Two Important Considerations
What can make things even more complicated is that employers need to stay informed about (1) what employee records need to be kept separate; and (2) who can have access to employees’ personnel files.
Here are some areas to be cautious about, according to an online business and human resources site, Nolo.
“Medical records. Do not put medical records into a personnel file. If your worker has a disability, you are legally required to keep all of the worker's medical records in a separate file -- and limit access to only a few people. Even for workers who are not disabled, you may have a legal obligation to keep medical records private (and it's a good idea to do so, in any case).
Form I-9s. Do not put Form I-9s into your employees' personnel files. (Form I-9 is a form from U.S. Citizenship and Immigration Services (USCIS), formerly the INS. You must complete an I-9 for all employees, verifying that you have checked to be sure that the employees are legally authorized to work in the United States.)
You should put all Form I-9s into one folder or notebook for USCIS. The government is entitled to inspect these forms, and if it does, you don't want the agents viewing the rest of the employee's personnel -- and personal -- information at the same time. Not only would this compromise your workers' privacy, but it also might open your business up to additional questions and investigation.”
It is further recommended that employees’ Form I-9 records be available only to human resources and auditing and investigative agencies.
According to the Society for Human Resource Management (SHRM), medical-related documentation is “anything related to a medical condition, workers’ compensation or a condition requiring leave,” and may include the following:
- “Medical history questionnaires.
- Medical evaluations and related documents.
- Notes from doctors.
- Requests for Family and Medical Leave Act (FMLA) leave and related documents.
- Requests for Americans with Disabilities Act (ADA) accommodations and related documents.
- Workers’ compensation history, claims and related documents.
- Results of drug/alcohol tests and related documents.
- Any documents about past or present health, medical condition, or disabilities.”
It is also a good practice to keep benefits enrollment information in a separate file.
Restricted Access Guidelines
Generally, an employee’s personnel file should be restricted to the employee, human resources and supervisors with a ‘need to know’. Separately maintained medical records should be restricted to human resources, supervisors who need to be involved with making a reasonable accommodation decision and government or legal agencies investigating relevant medical issues. Payroll records are restricted to payroll staff, human resources and auditing and investigative agencies.
This series about record retention guidelines is intended as general information only. You will also want to check your state laws on record retention, or consult with a human resource specialist or an employment law attorney to make sure your business is in compliance with federal and state laws.
Important Update: Under the Lilly Ledbetter Fair Pay Act of 2009, employers will need to be prepared to document the reasons for pay decisions, so you will want to make sure you keep those records. For more information and details, two other related HRTools.com Insights can be found at:
http://www.hrtools.com/insights/laura_meisel/the_lilly_ledbetter_fair_pay_act_part_one_the_basics.aspx
http://www.hrtools.com/insights/laura_meisel/the_lilly_ledbetter_fair_pay_act_part_two_how_companies_can_protect_themselves.aspx