Proper recordkeeping is a requirement for all employers and
for good reasons. It makes good
business sense to have accurate information on hand and organized when you want
to use it and most business owners and managers will eventually encounter the
need to produce documentation about employee performance and work history. Having the proper records is vital when the
need presents itself. Below is a list of
some requirements and helpful hints to remember when it comes to employee
personnel files.
- Employee files should be kept safe in a lockable cabinet or area to protect sensitive personal information. Access to information about employees should be strictly limited to those people in your business with a need to use the information in their jobs.
- I-9 forms should not be kept in an employee’s file. Rather, I-9’s should be organized together in a separate space that is convenient in the event of an I-9 audit. Many government agencies are authorized to inspect your I-9 forms if they visit your work location. If you have them in your personnel files, the government gets to go through your personnel files. Anything they find there can raise additional questions or issues. In a separate I-9 file, you have the ability to hand the inspecting agent one file folder with all your I-9 forms. No problems can arise from that if you have completed all your I-9s as required. Be sure that you use the current version of the I-9 Form. Using an outdated version can cost you $1,000 per document. Errors on the form can cost you up to $1,000 each as well.
- Doctor’s notes, as well as benefit and 401K information
should also be kept separate from an employee’s general file. The federal Health Insurance Portability and
Accountability Act of 1996 (HIPAA) requires that any type of personal medical
information should be kept confidential and not be part of an employee’s file. Examples of documents that should be removed
from employee personnel files include:
- Health insurance application form
- Life insurance application form
- Request for medical leave of absence regardless of reason
- Personal accident reports
- Workers' compensation report of injury or illness
- OSHA injury and illness reports
- Any other form or document which contains private medical information for a specific employee.
- Some sample items that should be kept in an employee file include:
- Application/resume
- Tax and payroll information (garnishments, deduction authorizations, etc)
- Signed policies and/or handbook
- Disciplinary documentation
- Criminal background check
- Employment offer letter
- Employment agency agreement if hired through an agency
- Employee status change documentation
- Exit interviews
- Training and development records/documentation
- Perform regular self audits of your record keeping processes to ensure they remain compliant. Part of being a professional business manager is keeping quality professional records. Take a look at your organization's practices and find out if you have what you need. If not, plan to get it. It will save you trouble in the long run.
Be sure to also understand your state laws surrounding
employee documentation as additional laws may apply.
Excerpts taken from a great article in The Management Advantage.
