What's In Your Employee Files?

Let’s face it. Human Resources will never be able to make the move to a “paperless” environment. In the hiring process alone there are new hire approval forms, applications, resumes, W-4’s, I-9’s, etc. So, as an employer, where do you retain all this documentation?

First, employee privacy rights require that all personnel files are kept in a secure location, preferably under lock and key. There should be only one official set of personnel files. If you have a Human Resources department, the files should be housed there. Please bear in mind that access to personnel files should be limited to those individuals with a bona fide need to know the information in the file.

At a minimum there should be two employee files, the personnel file and the medical file. Oftentimes an employer will additionally maintain a payroll file for its employees.

The personnel file should contain job-related documentation (information relevant to the employee’s employment only) such as:

• Employment application
• Offer letter
• Acceptance letter
• Job description
• Development records such as training, education and degrees
• Performance appraisals
• Commendation letters
• Emergency contact information
• Documentation regarding compensation history
• Acknowledgement for the receipt of the employee handbook and other policies.
  

The federal Health Insurance Portability and Accountability Act of 1996 (HIPAA) requires employers to protect and treat medical records as confidential and to maintain them separate and apart from other business records. Information that should be maintained separate from the personnel files and retained in a confidential medical file are:

• Health insurance application
• Life insurance application
• Request for medical leave of absence
• Personal accident reports
• Workers compensation report of injury or illness
• OSHA injury and illness report
• Any other document/form containing private medical information
• Drug test information and information concerning drug or alcohol rehabilitation
  

Last but not least, let’s talk I-9 documentation. Employee I-9s, and their supporting documentation, should be retained in a separate file and location. It is recommended to retain the I-9s in a three-ring binder. Remember to review the file annually and to obtain updated support documentation when necessary.

My on-going thanks to Mrs. Emily McGowan for her proof-reading services!