How long to keep terminated employee personnel files

These recordkeeping duties require employers to create and retain certain information related to compliance with federal laws. The below table summarizes numerous employer HR recordkeeping and retention requirements, indicating the longest retention period established by federal law.

For GenesisHR clients, this is just another way we provide assistance and clarity. Personnel records are one of the most tricky and complicated aspects of HR paperwork and record-keeping, but for legal and best practice purposes, employers have good reasons to keep several personnel files.

For example, in Massachusetts , it is required by law for employers with 20 or more employees to maintain a file. I like how this article from The Balance Careers sums it up:.

They support the decisions that are made about the employee and his or her career. The EEOC states that all personnel and employment records made or used including, but not limited to, requests for reasonable accommodation, application forms submitted by applicants, and records dealing with hiring, promotion, demotion, transfer, lay-off or termination, rates of pay, compensation, tenure, selection for training or apprenticeship, or other terms of employment must be preserved.

According to SHRM , the following information should also be kept in a general personnel file:. In Massachusetts, for example, employees have the right to review their employee records, and the employer must provide the record within five business days of the request.

Personnel records are often disorganized and not in a central location, which can make it difficult to quickly pull them together when you need them. The bottom line for HR paperwork retention is to not keep extra liability on hand. Some lawyers recommend up to seven years for potential situations regarding unequal pay practices.

Keep requests for FMLA leave, as well as related records whether leave was granted or not for at least three years. Tax records — At least four years. You need to keep employee tax records, including W-2s and W-4 tax withholding forms, for at least four years from the date taxes were due or paid. OSHA records — Five to 30 years. Plan to hold onto OSHA forms about accidents and work-related injuries for the current year plus five proceeding years, unless toxic substances are involved, then 30 years.

Employee retirement benefits records — At least six years. By law, you must keep records of employee retirement benefits such as pension and k plans and COBRA for at least six years. Keep in mind that certain local or state laws or situations may require you to keep records longer. For example, depending on your state, the requirements for maintaining unemployment insurance records vary from four to seven years.

You can streamline employee recordkeeping by using convenient web-based tools, such as HRdirect Smart Apps. Putting your records in the cloud means important files are always at your fingertips, without taking up physical space in your office. You gain instant access to employee data from wherever you have an internet connection. Plus, you can allow employees to enter or update their personal information, for added recordkeeping convenience. Her career in HR began in as an HR manager at a small marketing firm.

Extremely passionate about HR, she is full of ideas to improve HR in small businesses. She is focused on developing next-generation products to replace traditional HR solutions, making HR management easier for employers. The state of Texas, for example, requires that employers maintain certain wage and tax information for four years. Certain benefits-related materials should be maintained by Texas employers for six years.

The U. Equal Employment Opportunity Commission EEOC requires you to maintain all employment records for one year from the employee's termination date.

Other employee benefit information must be retained for only one year. Special record keeping rules apply when an employee files a charge of discrimination under any of the anti-discrimination laws the EEOC enforces. In matters involving employee disputes under the federal civil rights laws, you must keep employee files until the employer and the federal agency reach a resolution, or until the EEOC issues its decision.

Because files must be kept throughout the entire dispute resolution process, it could be years after the termination before an employer can safely discard the employee's files. Because record keeping rules vary according to federal and state government requirements, it's prudent to maintain employee records for the maximum length of time.

It's perfectly fine to store those records electronically, so you don't have to allocate space and resources to paper records. You'd be wise to maintain all employee records for at least three years — to cover all the bases of the federal rules — and longer, if necessary, to comply with state rules.