Second in a Three-Part “HR Awareness” Series: Test Your Recordkeeping Knowledge
01/10/12
No, we’re not asking you to step back into the classroom -- you can put down your pens, textbooks and notepads! Instead, take a few moments to test your knowledge of proper recordkeeping practices. Your awareness of what to keep and what to toss can keep you in compliance and protect you from time-consuming and costly HR mistakes.
Q) How long should you retain hiring records?
A) Under Title VII of the Civil Rights Act and the Americans with Disabilities Act (ADA), job applications and resumes must be retained for one year from the date of submission. Pre-employment tests must be kept for one year from the date of the test.
The Immigration Reform and Control Act requires Form I-9s to be retained for three years from the date of hiring or one year after termination, whichever is later.
Q) What about promotion, demotion and termination records – how long should you keep those?
A) Title VII, the ADA and the Age Discrimination in Employment Act (ADEA) all stipulate that records relating to employee promotion, demotion, layoffs, recalls, discharges or selection for training must be kept for one year from the date of action.
Q) What kind of records should you include in an employee’s basic personnel folder?
A) As a general guideline: Keep items that influenced the employee’s hiring and employment in the past, as well as items that could affect his or her employment in the future. These include:
- Resume, references and application
- Copy of original job description
- Form W-4
- Performance reviews
- Benefits records
- Documentation related to salary increases and promotions
- Documentation supporting disciplinary action
Q) Medical documents go in the employee’s personnel file, too – right?
A) No. You should put everything related to an employee’s medical history (including test results and other medical information) in a separate file. Various privacy laws and the ADA require you to keep these confidential medical records apart from basic personnel files. Keep in mind that employee testing records for controlled substances or alcohol should be retained for one to five years, but medical records related to exposure to toxic substances or harmful physical agents should be held for 30 years after termination of employment.
Q) What are the retention rules for wage and hour records?
A) The Fair Labor Standards Act (FLSA) and ADEA require you to keep payroll and employee records (including name, address, date of birth, occupation, rate of pay and compensation) for three years. Records related to income taxes withheld from employees’ wages, including W-4 forms, must be retained for four years from the date the taxes are due or paid.
Q) What about leave-related records?
A) Under the Family and Medical Leave Act (FMLA), information pertaining to leaves of absence, such as time off and medical certification, must be retained for three years.
Q) Are there different retention rules for electronic and paper records?
A) No. Many employers use electronic imaging to store and retrieve electronic records. This can save on storage fees, protect against loss and damage, and allow for faster recovery and sharing. In terms of retention policies, electronic records are the same as paper records.