how long to keep employee files

Do You Know Long to Keep Employee Files After Termination?

Do you have some employee terminations but not sure how long you should keep the records?  The average person will have 12 different jobs in a lifetime, so at some point, you will most likely lose an employee either by termination or resignation.

There are rules you need to know when it comes to employee records and files. Keep reading to learn these guidelines on how long to keep employee files.

What Is Included in Employee Records?

Employee records contain information such as payroll records, benefits enrollment, medical records, personnel files, and also hiring information. Human resources typically keep the job-related materials and payroll records may be stored separately in the payroll department.

Information about the employee’s medical and health information is regulated with the Health Insurance Portability and Accountability Act (HIPPA) and needs to remain confidential.

How Long to Keep Hiring Records

You should save your hiring information for one year after you make a decision. This includes interview notes, applications, resumes, and job postings. This is needed in case anyone questions your hiring decision. 

Laws, such as Title VII and Americans with Disabilities Act, may require you to prove you were in compliance with your hiring. These documents will help you.

How Long Do You Have to Keep Employee Records on Payroll 

Law requires you to maintain and keep all payroll records for three years. You want to have a record of how much every employee was paid and how many hours each employee worked at your company. 

For exempt employees, you won’t need to maintain time records since pay is the same no matter how many hours the employee worked.

For non-exempt employees, be sure you keep a record of time worked as well. You also need to make sure he or she is labeled appropriately or you could owe additional compensation for overtime.

You also need to have information on how you calculated pay such as salary plus commission, set salary, overtime, hourly pay, or pay by project. You need this information for tax and pay questions but also an employee may need for FMLA eligibility.

If asked, you should be able to prove that you paid your employees appropriately for the hours worked even after the relationship was terminated.

How Long to Keep I-9 Forms

You should store and maintain employee I-9 Forms away from personnel records. You need to keep these forms for three years. 

You should have these in separate files in case the government requests to check them. Having this form separate from other personnel files will keep the employee’s other information private from other workers.

How Long to Keep Employee Files

The U.S. Equal Employment Commission (EEOC) requires a company to keep all employee records and personnel for at least one year after the termination date. These files include any information on:

  • Employee performance
  • Attendance notes
  • Emergency contact information
  • Acknowledgment of employee handbook
  • Resignation letter
  • Training records
  • Contact information
  • Employment contract
  • Exit interview
  • Any notes on disciplinary actions

These files are basically anything else related to the job but not medical information. 

Looking for Record Management or Shredding?

Now you have a basic idea of how long to keep employee files even after someone is no longer at your company. 

If you are looking for help with your record management or help to shred your documents after you no longer need them, contact us today.  We can help secure your documents for you.