Recordkeeping: How long do I have to keep records?

07/31/07

Question: How long must I retain records for former employees? Answer: The retention period for various employee records varies based on the various employment laws you are subject to: Here are some guidelines, but keep in mind that your state may impose additional requirements:

Age Discrimination in Employment Act (ADEA)
Payroll records: 4 years for tips and total wages.
Screening tests: 1 year for employers with 100 or fewer employees.
Drug test results: 1 year after action taken.
Result of physical exams: 1 year.
Hiring, promotion, demotion, transfer, selection for training, layoff, recall or discharge of any employee: 1 year after action taken. Employee records including name, address, date of birth, occupation, rate of pay, compensation per week: 3 years. Records of charges of discrimination and any personnel records relevant to a pending charge: until final disposition.
Benefit plans: at least 1 year after termination of the plan.

Equal Employment Opportunity Commission (EEOC)
Request for reasonable accommodation: 1 year after the record made or 1 year after action taken, whichever is later.
Hiring, promotion, demotion, transfer, selection for training, layoff, recall or discharge of any employee: 1 year after record made or 1 year after action is taken, whichever is later.
Termination records: 1 year from termination date.

Employee polygraph Protection Act (EPPA)
Polygraph test: 3 years from the date the polygraph test is conducted.

Employee Retirement Income Security Act (ERISA)
Benefit plans: 6 years.

Federal Insurance Contribution Act (FICA)
Payroll records: 4 years for occupation, rate of pay compensation earned by each employee.

Fair labor Standards Act (FLSA)
Child labor: verification of age for minors, 3 years.
Employment contracts: 3 years.
Payroll records: 4 years (includes payroll records, certificates, collective bargaining agreements, contracts, plans, trust)
Employee evaluations, seniority systems, wage rates, merit systems, collective bargaining agreements: 3 years.

Family and Medical Leave Act (FMLA)
FMLA documentation: 3 years after leave ends.

Immigration Reform and Control Act (IRCA)
I-9 forms and additional verification information: the later of 3 years from date of hire or 1 year after termination.

Occupational Safety and Health Act (OSHA)
OSHA forms related to injuries and illnesses: employers with 10 or more employees must keep these records 5 years following the end of the year to which they relate.
Medical exams and records related to or indicating employee exposure to toxic substances or otherwise harmful physical agents: 30 years after termination of employment.
Records concerning measurement of employee noise exposure: 2 years.

As you can see, one type of document may be covered by numerous, conflicting retention requirements. That's why you should keep records as per the lengthiest requirement. For example, since payroll records are required to be kept for 3 years under the ADA, and 4 years under FICA, retain then for 4 years.

G.Neil offers many excellent resources to assist you with organization of your personnel files and in meeting your retention requirements. here are a few favorites:
Employee Record Organizer
Confidential Employee Medical Records Folder
Personnel Pocket File Folder
Employer’s Guide To Recordkeeping Requirements
State and Federal Employment Law Manual
Easy Reference: Employee Record Retention