7 Most Common Recordkeeping
Mistakes Revealed
Organizing Your Records
When organizing your files,
regulations such as the ADA and Civil
Rights Acts can provide guidance.
Though these laws apply to hiring
practices and discrimination, they are
good indicators of what types of
employee information should be kept
confidential, separate, and secure.
In addition, you can control access to
sensitive information (such as use of
days off) by separating each file by
category.
You should also be aware that certain
states impose record keeping
limitations; Massachusetts, Illinois,
and Michigan, for example, prohibit
employers from keeping certain
categories of information in human
resource files unless employees
volunteer such information and
provide written authorization to
maintain the file.
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There is more to employee recordkeeping than filing some basic forms in a
manila folder. Though keeping human resource records may sometimes be an
arduous task, there are a many reasons to invest time and effort into it. Are you
protecting your business by keeping the right records or are you making the
most common recordkeeping mistakes? Read on to find out.
Mistake #1: Keeping all employee information in one
file.
An employee’s personal information should not be mixed with their employment
related information. If a supervisor has access to information concerning a
worker's age, health status, or workers' compensation claim, for example, an
employee could file a discrimination claim based simply on that access, whether
or not the supervisor sought and/or used that information. The employee’s main
file should not include any information that may be construed as discriminatory,
such as the employee’s date of birth, marital status, medical history, citizenship,
and the like. This information should be kept in a separate secure file, only
accessible to those with a need to know.
Mistake #2: Being unaware of the records you are
required to maintain.
The Immigration Reform and Control Act requires employers maintain employee
I-9 forms, the Fair Labor Standards Act requires employers retain employee
payroll information, the Americans with Disabilities Act requires employers to
retain application forms and resumes, the Family Medical Leave Act requires
employers keep records of employee requests for leave…with all the different
laws governing employer recordkeeping practices it’s difficult to know what to
keep and what to toss. Below is a list of what should be kept in employee
personnel files:
● Resumes and employment applications – even if you don’t hire the
individual
● New hire paperwork: offer letters, employment agreements, I-9
forms, non-compete agreements, employee handbook
acknowledgements, direct deposit authorizations, W-2 and W-4
forms, emergency contact forms
● Performance appraisal forms and performance related
documentation, such as discipline notices and recognition forms
● Employee grievances
Copyright 2008 HR411
 7 Most Common Recordkeeping
Mistakes Revealed

Discrimination Concerns ● Payroll records, timesheets, hours worked and wages earned
● Time off and leave requests
Though separating certain records is ● Job descriptions
not legally required, doing so may ● Records of training sessions attended
reduce your vulnerability to ● Exit interviews and the reason for termination
discrimination claims.

If a supervisor has access to

information concerning a worker's
age, health status, or workers'
compensation claim, for example, an
employee could file a discrimination
claim based simply on that access,
whether or not the supervisor sought
and/or used that information.
Mistake #3: Failing to keep records secure.
All employee records should be secure at all times (under lock and key), only
accessible by those with a need to know. Supervisors can have access to
personnel files, but should be restricted access to employee medical
information and other non-employment related data, such as one’s date of
birth, religion, national origin, etc.

The main file should not include any

information that may be construed as Mistake #4: Not maintaining records for at least as
discriminatory, such as the following: long as the law requires.
• Date of birth Different laws require employers retain certain records for a specified period.
• Age Use the chart below to be sure you are keeping your records at least as long
• Gender as you are required to by law.
• Marital status
• Record of dependents Record Number of Years to Keep
• Medical history
• Citizenship Accident Reports and Injury Claims 11
• National origin (workers' compensation)
• Religion Medical Records 30
• Other personal information
unrelated to the job or Applications or Resumes (non-hires) 1
company
Attendance Records (timesheets) 4

EEO-1 Reports 1

Employee Benefit Plans 2 years following termination of plan

Employee Exposure Records 30

Employment Advertisements 1

ERISA Retirement & Pension Records Indefinitely

Equal Employment Opportunity 1

Records

HR411.com: The HR Solution You Can Afford for the HR Problems You Can’t | § 1-888-MyHR411 | customercare@hr411.com

THIS FORM IS PROVIDED "AS IS." WE DISCLAIM ALL WARRANTIES, EXPRESS AND IMPLIED, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY AND OF FITNESS
FOR A PARTICULAR PURPOSE WITH RESPECT TO ANY INFORMATION CONTAINED HEREIN. ONCE THIS DISCLAIMER AND SAMPLE IMAGE ARE REMOVED FROM THIS
DOCUMENT, YOU ASSUME ALL RESPONSIBILITY FOR ITEMS, TERMS, CONTENT AND LANGUAGE.

Copyright 2008 HR411


Mistakes Revealed
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7 Most Common Recordkeeping
5
OSHA Logs
8
Paychecks
3
Payroll Records
6 years following date of separation
Personnel File Records
4
Tax Records
3
Family and Medical Leave Act Records
3 years after employment begins or 1 year
Form I-9
beyond termination, whichever is later
Mistake #5: Failing to report new hires.
Each state requires employers to report their new hires; whether through an
online new hire reporting system or via the completion of the employee’s tax
form (W-2). Know your state requirements, and whenever you have a new hire
be sure to report it to the appropriate government agency.
Mistake #6: Restricting employee access to
personnel files.
Many states have laws that permit employees access to their personnel files if
they request it. Most require that employers grant employee’s access to their
personnel file within a “reasonable period of time” following a written request by
the employee.
Mistake #7: Discarding terminated employees’ files.
Just because an individual is no longer employed by your company doesn’t
mean you don’t need to keep their related information. Keep reasons for
termination, medical records, workers’ compensation and accident reports, I-9s
(if hired less than 3 years prior), and exit interview surveys on all terminated
employees.