THIS FORM IS PROVIDED "AS IS." WE DISCLAIM ALL WARRANTIES, EXPRESS AND IMPLIED, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY AND OF FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO ANY INFORMATION CONTAINED HEREIN. ONCE THIS DISCLAIMER AND SAMPLE IMAGE ARE REMOVED FROM THIS DOCUMENT, YOU ASSUME ALL RESPONSIBILITY FOR ITEMS, TERMS, CONTENT AND LANGUAGE.

Copyright 2008 HR411

Organizing Your Records When organizing your files, regulations such as the ADA and Civil Rights Acts can provide guidance. Though these laws apply to hiring practices and discrimination, they are good indicators of what types of employee information should be kept confidential, separate, and secure. In addition, you can control access to sensitive information (such as use of days off) by separating each file by category. You should also be aware that certain states impose record keeping limitations; Massachusetts, Illinois, and Michigan, for example, prohibit employers from keeping certain categories of information in human resource files unless employees volunteer such information and provide written authorization to maintain the file.

7 Most Common Recordkeeping Mistakes Revealed

There is more to employee recordkeeping than filing some basic forms in a manila folder. Though keeping human resource records may sometimes be an arduous task, there are a many reasons to invest time and effort into it. Are you protecting your business by keeping the right records or are you making the most common recordkeeping mistakes? Read on to find out.

Mistake #1: Keeping all employee information in one file. An employee’s personal information should not be mixed with their employment related information. If a supervisor has access to information concerning a worker's age, health status, or workers' compensation claim, for example, an employee could file a discrimination claim based simply on that access, whether or not the supervisor sought and/or used that information. The employee’s main file should not include any information that may be construed as discriminatory, such as the employee’s date of birth, marital status, medical history, citizenship, and the like. This information should be kept in a separate secure file, only accessible to those with a need to know. Mistake #2: Being unaware of the records you are required to maintain. The Immigration Reform and Control Act requires employers maintain employee I-9 forms, the Fair Labor Standards Act requires employers retain employee payroll information, the Americans with Disabilities Act requires employers to retain application forms and resumes, the Family Medical Leave Act requires employers keep records of employee requests for leave…with all the different laws governing employer recordkeeping practices it’s difficult to know what to keep and what to toss. Below is a list of what should be kept in employee personnel files:

● Resumes and employment applications – even if you don’t hire the individual

● New hire paperwork: offer letters, employment agreements, I-9 forms, non-compete agreements, employee handbook acknowledgements, direct deposit authorizations, W-2 and W-4 forms, emergency contact forms

● Performance appraisal forms and performance related documentation, such as discipline notices and recognition forms

● Employee grievances

HR411.com: The HR Solution You Can Afford for the HR Problems You Can’t | 1-888-MyHR411 | customercare@hr411.com

THIS FORM IS PROVIDED "AS IS." WE DISCLAIM ALL WARRANTIES, EXPRESS AND IMPLIED, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY AND OF FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO ANY INFORMATION CONTAINED HEREIN. ONCE THIS DISCLAIMER AND SAMPLE IMAGE ARE REMOVED FROM THIS DOCUMENT, YOU ASSUME ALL RESPONSIBILITY FOR ITEMS, TERMS, CONTENT AND LANGUAGE.

Copyright 2008 HR411

Discrimination Concerns Though separating certain records is not legally required, doing so may reduce your vulnerability to discrimination claims. If a supervisor has access to information concerning a worker's age, health status, or workers' compensation claim, for example, an employee could file a discrimination claim based simply on that access, whether or not the supervisor sought and/or used that information. The main file should not include any information that may be construed as discriminatory, such as the following: • Date of birth • Age • Gender • Marital status • Record of dependents • Medical history • Citizenship • National origin • Religion • Other personal information

unrelated to the job or company

● Payroll records, timesheets, hours worked and wages earned ● Time off and leave requests ● Job descriptions ● Records of training sessions attended ● Exit interviews and the reason for termination

Mistake #3: Failing to keep records secure. All employee records should be secure at all times (under lock and key), only accessible by those with a need to know. Supervisors can have access to personnel files, but should be restricted access to employee medical information and other non-employment related data, such as one’s date of birth, religion, national origin, etc. Mistake #4: Not maintaining records for at least as long as the law requires. Different laws require employers retain certain records for a specified period. Use the chart below to be sure you are keeping your records at least as long as you are required to by law. Record Number of Years to Keep Accident Reports and Injury Claims (workers' compensation)

11

Medical Records

30

Applications or Resumes (non-hires)

1

Attendance Records (timesheets)

4

EEO-1 Reports

1

Employee Benefit Plans

2 years following termination of plan

Employee Exposure Records

30

Employment Advertisements

1

ERISA Retirement & Pension Records

Indefinitely

Equal Employment Opportunity Records

1

HR411.com: The HR Solution You Can Afford for the HR Problems You Can’t | 1-888-MyHR411 | customercare@hr411.com

7 Most Common Recordkeeping Mistakes Revealed

About HR411.com HR411 provides practical HR tools and resources in one central location to make managing your HR function easier than ever. Whether you need instant access to thousands of everyday forms and documents, tools to create and maintain a professional employee handbook, fast and cost-effective background screening tools, or practical advice and guidance on HR topics from hiring to firing, you can find it all here on HR411.com. HR411 provides: • Unlimited HR support by phone

and email • Employee handbook creation

and management tools • Exclusive online self-audit and

correction tools • Online job creation and

management tools • State and federal labor laws

database • Affordable background

screening services • Thousands of HR forms,

documents, applications, checklists and more

• Labor posters • And much more

OSHA Logs Paychecks 8

Payroll Records 3

Personnel File Records 6 years following date of separation

Tax Records 4

Family and Medical Leave Act Records 3

Form I-9 3 years after employment begins or 1 year beyond termination, whichever is later

Mistake #5: Failing to report new hires. Each state requires employers to report their new hires; whether through an online new hire reporting system or via the completion of the employee’s tax form (W-2). Know your state requirements, and whenever you have a new hire be sure to report it to the appropriate government agency. Mistake #6: Restricting employee access to personnel files. Many states have laws that permit employees access to their personnel files if they request it. Most require that employers grant employee’s access to their personnel file within a “reasonable period of time” following a written request by the employee. Mistake #7: Discarding terminated employees’ files. Just because an individual is no longer employed by your company doesn’t mean you don’t need to keep their related information. Keep reasons for termination, medical records, workers’ compensation and accident reports, I-9s (if hired less than 3 years prior), and exit interview surveys on all terminated employees.

7 Most Common Recordkeeping Mistakes Revealed

5