How to Legally Keep Personnel Files

Federal law requires employers to keep records on individual employees.

Employers should have a clear understanding of how to maintain employee personnel files. Correctly maintained files are organized and contain all documentation relevant to each employee's work history with the company. Employers should consider that information provided in an employee's personnel file may later be used as evidence in a lawsuit. Therefore, proper attention must be given to its management.

Instructions

1. File all documents relating to an employee's job application and acceptance process. The file should include the following: employee's resume and job application, written description of the position, W-9 forms, signed offer of employment, signed acknowledgment of employee handbook, benefits package and salary information.

2. Keep all files related to performance. Employee evaluations, disciplinary actions and warnings should be kept in the file.

3. Include employee timesheets, vacation and sick leave requests, payment records, complaints, awards and documents related to an employee's termination or departure from the company.

4. Maintain separate files for I-9 forms and medical files. Do not include any irrelevant information, especially content that may indicate bias or favoritism, as it can be used as evidence indicating discrimination in a lawsuit.

5. Train human resources employees on the protocols for handling the personnel file to ensure that sensitive information is protected.

6. Store the personnel file in a secure location.

References

• The Legal Aid Society-Employment Law Center: Personnel File
• NoLo: What to Keep in Employee Personnel Files: by Amy DelPo and Lisa Guerin
• HR Outsourcing Connection:Personnel Files: 10 Steps to Maintaining Employee Files. A Compliance Must.