Whether you are new to the human resources function or you’ve been in HR for a long time, sometimes it’s good to get back to basics with best practices for maintaining employee files. Storing and being able to retrieve employee information when needed is an essential albeit a tedious task. However, when done correctly, it can make our jobs much easier in the long run.

When maintaining employee files, it is best to keep documents in distinct categories for confidentiality purposes and ease of locating specific paperwork. Below are the general categories of the files you need to maintain.

General employee file
This file may include resumes, applications, policy acknowledgements, training certificates, education and employment verifications, job descriptions, orientation checklists, promotion requests, evaluations, recognition for achievements, termination documentation or resignation letters, exit interview records and termination checklists. Consider adding dividers to the general employee file to categorize the different items.

Payroll file
A payroll file includes information and documentation related to payroll such as time sheets, tax forms, attendance records, receipts for reimbursements, garnishment paperwork, direct deposit authorizations and any other documents related to money. This is personal, confidential information and should not be stored in the general file.

Medical file
This file may contain FMLA documentation, drug testing records, doctor’s notes and medical leave documentation, workers’ compensation claims, accident reports and any other medical-related information. Personal health information is confidential and should always be stored securely.

I-9 forms
I-9 forms should be stored separately. Generally, they should be maintained in one file for all employees and in alphabetical order so that they are easily accessible in the event of an audit. These records contain confidential personal information and should be stored securely.

Employee files can be maintained electronically or in a paper format. The same guidelines apply to both methods. For electronic storage, make certain that the data is backed up regularly, the information is password protected and cybersecurity guidelines are followed. Store paper personnel files in fireproof and waterproof file cabinets where they are secure and protected from potential damage.

Finally, if you maintain employee files for a period of six years after an employee terminates (destroying the file on the seventh year), you will have met all current record retention guidelines. There are exceptions. For example, do not destroy a file related to ongoing litigation or an unresolved dispute, one in which there is an active workers’ compensation claim, or if the employee had a job-related chemical exposure.

Even the most mundane tasks performed by an HR professional are important. Creating and maintaining personnel files is just one example of these essential responsibilities. Taking the time to organize and store employee documentation in a way that is easily accessible is just one way that HR professionals ensure compliance with state and federal laws that dictate retention requirements for employee records.

As always, the League is here to assist you. Please do not hesitate to reach out to us with any questions you may have.

Tracey L. Cline-Pew, SPHR, SHRM-SCP, is chief human resources officer for the Arkansas Municipal League. Contact Tracey at 501-374-3484 ext. 111, or [email protected].