Managing employee records is an important aspect of Human Resources, but may be confusing as employment laws require different documents to be kept for varying time periods. These inconsistent restrictions may make the process a challenge and can become troublesome if a lawsuit is faced and the necessary paperwork isn’t readily available.
Lacey Halpern, HR Business Partner at Xenium, provides insight about the importance of these time frames for personnel files, resumes and applications, and employee I-9 forms.
Personnel Files:
Within the personnel file, there is a whole host of different forms including payroll information, personal information, performance documentation, training logs, and the list goes on. Most employers would rather use one date for record retention rather than pull individual items out of a termed employee’s file as the deadline approaches. Attorneys and experts typically recommend that personnel files be kept for seven years after the date of termination, and some employers choose to keep them even longer when space and storage areas permit.
Resumes and Applications:
While there is no law that requires employers to keep resumes and applications for any length of time, most employers choose to keep resumes and applications from the recruiting process on file for one year. The statute of limitations on discrimination claims under Title VII of the Civil Rights Act is one year, and therefore keeping all recruitment materials for one year would ensure the employer had documentation to support a claim of discriminatory hiring practices. There is a new house bill proposed (HB 2606) that would extend the statute of limitations for filing a claim under protected class status (e.g. race, sex, color, etc.) from one year to two years.
Employee I-9 Forms:
The Form I-9 is used to document verification of the new employee’s identity and authorization to work in the United States. Employers are required to keep the Form I-9 on file for terminated employees for at least three years after their hire date or one year after the termination date, whichever is longer. Many employers choose to keep I-9s for terminated employees in a separate file from the current employees’ I-9s, and review them on a quarterly or annual basis depending on the number of employees and turnover rates.
If an employer does not comply with state and federal laws on record retention they could be subject to civil penalties for destroying records before the end of the required retention period. In addition, if an employer were to receive a claim of discrimination, having records may aid in defending the claim.
Sources:
- HR Recordkeeping: What you need to hang on to, and for how long
- SHRM:Record Retention and Destruction (specific to government contractors)