Whether it’s a two person operation or two hundred, when running a business proper organization of personnel files may save a lot time and money. No federal or state law requires an employer to maintain personnel files; however, various federal and state laws mandate that certain records be kept. For organizational purposes as well as legal protection, you should keep separate and up-to-date personnel files. The chances of becoming involved in legal actions related to hiring, supervision or firing decrease when personnel records are maintained correctly.A personnel file should be started for each employee on the date of their hire. All important job-related documents should be placed in each employee’s file. The following document should be placed in an employee’s file; Request for application, Employee's original employment application, Pre-screening application test, College recruiting interview report form, College Transcript, Employment interview report form, Education verification, Employment verification, Other background verification, Rejection letter, Employment offer letter, Employment agency agreement if hired through an agency, Employee Handbook acknowledgment form showing receipt of Handbook, Checklist from new employee orientation showing subjects covered, Veterans/Disabled self-identification form, Transfer requests, Relocation offer records, Relocation report, Security clearance status, W-4 Form, Weekly time sheets, Individual attendance record, Pay advance request record, Garnishment orders and records, Authorization for release of private information, Authorization for all other payroll actions, Performance Appraisals, New employee progress reports, Performance appraisal forms, Performance improvement program records, Training and Development, Training history records, Training program applications/requests, Skills inventory questionnaire, Training evaluation forms, In-house training notification letters, Training expense reimbursement records, Employee Separations, Exit interview form, Final employee performance appraisal, Exit interviewer's comment form, Record of documents given with final paycheck, Benefits, Emergency Contact Form, Medical/Dental/Vision coverage waiver/drop form ,Vacation accrual/taken form, Request for non-medical leave of absence, Retirement application, Payroll deduction authorizations, COBRA notification/election, Hazardous substance notification and or reports ,Tuition reimbursement application and or payment records, Employer concession and or discount authorization.Not every document relating to a particular employee should be placed in the personnel file. The Federal Health Insurance Portability and Accountability Act of 1996 (HIPAA) requires employers and health care providers to protect medical records as confidential, separate and apart from other business records.The Americans with Disabilities Act (ADA) requires employers to keep all medical records separate. Medical records include physical examinations, medical leaves, workers' compensation claims, and drug and alcohol testing. Title VII of the Civil Rights Act of 1964 (Title VII); the Equal Pay Act of 1963 (EPA); the Age Discrimination in Employment Act of 1967 (ADEA); Title I and Title V of the Americans with Disabilities Act of 1990 (ADA); Sections 501 and 505 of the Rehabilitation Act of 1973; and the Civil Rights Act of 1991. Are Federal laws prohibiting job discrimination against a Protected class. Protected classes include race, national origin, creed, sex, physical or mental disability, marital status, age and political ideas. These laws are investigated and enforced by the Equal Employment Commission (EEOC). To minimize claims of discrimination, it is essential to keep documents that identify protected classes in a separate file.Safety Training Records- OSHA may audit a company's safety training records; again, keeping this information in a separate file will limit the auditor from investigating other information in the personnel file.Reference check documentation, exit interviews and documents related to internal/external investigations and litigation should be maintained separately. Also file child support/garnishment documents and veteran status records separately. As a general rule employees have a right to have access to their own personnel records. Personnel files should be treated a confidential information. Only personnel who have a legitimate need to view information should have access to other employee’s records. But there are employees who have a legitimate need to view the information in a personnel file. For example, a supervisor may need to review performance evaluations to decide whether to promote an employee, or the human resources manager may need to review an employee's salary information to decide what to pay a new hire in the same position. And, in most states, employees have the right to inspect their own personnel files. Therefore, company policy should identify who has access to personnel records and for what reasons. The U.S. Commerce Department recommends the Code of Fair Information Practices. The Code of Fair Information Practices states that information in employee personnel files should be limited to only necessary information, access will be controlled, employees will have access to their own records, and procedures are in place for correction and completion of the data. And finally all personnel records should be kept in locked file cabinets!
