| dkeeping: at best, the term is enough to make an | | | | years after an employee is hired, or one year |
| HR Manager’s eyes glaze over. At worst, | | | | after termination (whichever is later). |
| it’s the cause of some serious stress and | | | | Furthermore, it’s a good idea to keep |
| anxiety. Tedious and time-consuming though the | | | | applications from non-hires for at least 2 years |
| HR recordkeeping process might be, it’s | | | | after submission. Be sure to check local laws in |
| one of those absolutely necessary evils that | | | | each state where your employees are working, |
| employers know is a critical component of | | | | as these regulations may sometimes differ from |
| maintaining security, minimizing risk, and protecting | | | | federal stipulations. If both federal and state laws |
| your company from lawsuits or expensive | | | | have specified retention periods for the same |
| government-imposed penalties. Unfortunately, | | | | type of employment document, follow the law |
| however, litigation often ends up being the first | | | | with the longer retention period. And in the event |
| time a company’s recordkeeping process | | | | of pending litigation or investigation, preserve any |
| is checked. Many businesses fail to pay much | | | | and all documents pertaining to the litigation |
| attention to their record storage and disposal | | | | indefinitely, regardless of the mandated retention |
| methods until a legal investigation or lawsuit is | | | | period. |
| underway – and by then it may be too | | | | What about Electronic Records? |
| late. Worst-case-scenarios such as this can be | | | | One of the biggest hassles involved with HR |
| avoided by staying informed of legal requirements | | | | recordkeeping is organizing and storing of all that |
| and taking steps to ensure your processes are | | | | paper. Electronic storage can be a tremendously |
| compliant. | | | | effective way to save space, cut storage costs, |
| Below are a few guidelines and suggestions for | | | | and make your business practices more |
| reducing the hassle and improving the legality of | | | | environmentally friendly. But are electronic records |
| your HR recordkeeping policies and practices. | | | | still in compliance with Federal and State |
| What to Keep, and for How Long | | | | recordkeeping regulations? According to Business |
| When deciding which types of personnel records | | | | and Legal Reports, “one major obstacle |
| to keep, a good rule of thumb is to hold on to | | | | for HR is determining the permissibility of storing |
| anything you or your company may be asked to | | | | legally require documents electronically,” |
| provide in the event of a lawsuit or investigation. | | | | because “at this time, there is no |
| In general, each employee’s personnel file | | | | comprehensive federal or state law governing |
| should include documentation of the following: | | | | electronic records retention and management, and |
| • Employment/on-boarding: application | | | | a totally paperless office is not yet |
| materials, resume, job description, education | | | | possible.” |
| employment verifications, background checks, | | | | The good news is that the federal government is |
| employment offer letter, welcome letter, and | | | | moving slowly but surely toward policies that |
| emergency contact forms | | | | favor electronic storage. The Department of |
| • Payroll/hours worked: timesheets, | | | | Homeland Security has moved to an electronic I-9 |
| attendance records, and any payroll authorizations | | | | form, allowing for online employment verification |
| such as direct deposit | | | | through E-Verify. Meanwhile the Equal Employment |
| • Performance management: progress and | | | | Opportunity Commission (EEOC) has approved of |
| performance reports, written warnings, and/or | | | | electronic storage for a number of documents, |
| corrective actiondocumentation | | | | and the Employee Retirement Income Security |
| • Training and Development: training | | | | Act (ERISA) regulations now permit an electronic |
| certifications, award nominations, and training | | | | recordkeeping system as well. |
| history records | | | | If your company is using or plans to use |
| • Wage/salary administration: | | | | electronic recordkeeping, here are a few |
| compensation history, notifications of wage/salary | | | | recommended guidelines to keep in mind: |
| increases or decreases, jury duty summons, and | | | | • Be ready and able to furnish a hard |
| any change in employment status | | | | copy: Make sure that electronically-stored records |
| • Separation: exit interview form, final | | | | can easily be converted into paper copies if |
| performance appraisal, and any other documents | | | | necessary |
| given at time of separation | | | | • Don’t compromise security: |
| It’s important to remember that an | | | | Ensure your recordkeeping system has |
| employee’s file should only contain items | | | | reasonable controls and security measures in place |
| related to his or her job or employment status. | | | | to keep records confidential, accurate, and |
| Due to federal laws regarding employee privacy | | | | authentic. |
| rights (such as HIPAA and the Patient Safety | | | | • Make sure documents are still legible: |
| Rule), any medical records or other information | | | | Scanners, copiers, and fax machines can |
| regarding employee health and/or disability must | | | | compromise a document’s legibility. Invest |
| be maintained separate and apart from personnel | | | | in quality technology and instill measures that |
| files. | | | | ensure any documents stored electronically are |
| Other government-mandated forms such as I-9s | | | | still readable when displayed on a screen or |
| and court-ordered documents (including wage | | | | printed. |
| garnishments or restraining orders) must also be | | | | • Back up your data: Electronic documents |
| kept separate from a personnel file. One advisable | | | | are no different than their paper counterparts, in |
| practice is to store all I-9 Forms together in one | | | | that you must have a back-up version available in |
| folder for USCIS. In the event of a government | | | | the event that something happens to your |
| inspection, investigators who are entitled to | | | | primary storage method. Regularly create back-up |
| review your employees’ I-9 forms will not | | | | electronic copies of documentation and store |
| have access to personnel -- and personal -- | | | | them in an off-site storage location. |
| information at the same time. This lowers your | | | | • Conduct evaluations: Conduct systematic |
| risk of compromising employees’ privacy | | | | evaluations of your electronic recordkeeping |
| and/or opening your business up to additional | | | | system to check for quality, security, safety, and |
| questions and investigation. | | | | legal compliance. |
| As for how long to store personnel records, | | | | By staying abreast of the latest legislation as well |
| opinions vary. To be safe, most employment law | | | | as new advances in technology, you can develop |
| experts recommend retaining personnel records | | | | a recordkeeping policy that ensures privacy for |
| for the duration of an employee’s | | | | your staff, legal protection for your business, and |
| employment, plus an additional 5 years. Federal | | | | minimal impact on your company’s |
| law requires I-9 Forms to be maintained for three | | | | bottom line. |