How Long Should We Maintain Electronic Personnel Files for Terminated Employees?

How long you keep electronic personnel files depends on state laws.

Seven Years Is Recommended

According to Business Owner's Toolkit, an advice service for small businesses, you should keep a terminated employee's file (whether in electronic format or hard copy) for seven years. This will allow you to easily provide a reference for the employee or resolve any disputes about the reasons for termination.

Laws Vary by State

According to Business Management Daily's advice columnist Jonathan Hyman, "How long employers should keep personnel files is more a function of state law than anything else." Laws on how long to keep various documents in an employee's personnel file vary by state, so it's important that you know your state's laws.

Bottom Line

Check with state laws to make sure you're clear on how long you must keep specific documents in the file. To be safe, keep the personnel file for at least seven years so that you can access it as needed. If the file is all electronic and it isn't a hassle, there is no harm in keeping it longer. According to Business Owner's Toolkit, state laws mandate maintaining files for a period ranging from 60 days to three years after the employee has been terminated.

References

• Business Owner's Toolkit: Personnel Information You Must Keep
• Business Management Daily: How Long Should We Retain Employee Files?