Maintaining workplace records isn’t just a routine administrative task; it’s a legal obligation. From bi-weekly pay statements to employee discipline logs, employers must keep workplace records that include employee information and regulatory forms required by federal and state laws.
With an overwhelming amount of forms and files to keep track of, it's easy to get confused about which ones must be kept, for how long, and when it's time to purge outdated records. Here’s everything you need to know about managing workplace records effectively for your business.
What Workplace Records are Employers Commonly Responsible For?
Whether regulatory from the US government or employment documents in the workplace, there are several key records employers must prioritize for compliance.
Below is a general overview of the most important employee records that all employers must / should maintain:
|
Record Category |
Types of Records Included | Enforced Under |
|
Employment Personnel Documents |
Job applications, performance evaluations, termination records, accommodation requests, etc. | Equal Employment Opportunity Commission (EEOC) |
|
Payroll Records |
Pay statements, documents explaining wage differences, etc. | Age Discrimination Employment Act (ADEA) & Internal Revenue Service (IRS) |
|
Employee Benefits Records |
Benefits plan enrollment, retirement plans, etc. | Age Discrimination Employment Act (ADEA) |
|
Records for Employee Data, Wages Earned, and Hours Worked |
An employee's name, age, address, social security number, hourly pay rate, total wages earned, overtime wages earned, etc. | Fair Labor Standards Act (FLSA) |
|
Health and Safety Records |
OSHA Forms 300, 300A, and 301 | Occupational Safety and Health Administration (OSHA) |
|
Employment Verification Documents |
Form I-9 | US Citizenship and Immigration Services (USCIS) |
Disclaimer: Some states may have their own record management requirements or unique documents to maintain altogether. For example, Arizona’s Paid Sick Time Leave Law requires additional documentation for any earned paid sick time as part of an employee’s overall compensation. It’s best to consult your state’s department of labor to ensure your organization stays compliant.
Common Workplace Record Management Questions
Even if you know which records you're responsible for maintaining, there are many details in the process you may not be fully aware of. Below are some questions employers often ask regarding recordkeeping management:
How Long Do Companies Keep Employee Records?
All employers must maintain employee records throughout their time of employment. However, many federal document types have specific retention requirements of their own.
Below is a quick list of the required retention periods based on each record type:
- Employment Personnel: 1 year
- Payroll, Employee Data, Wages Earned, and Hours Worked: 4 years
- Employee Benefits: 1 year after plan termination date
- Health & Safety: 5 years
- Employment Verification: Kept as long as the employee is working
How Long Do Employers Keep Employee Records After Termination?
While dependent on the type of employee record, a general rule of thumb for many employers is to keep employee personnel records for up to 7 years post termination. This ensures that no matter the record type, federally required timelines for maintaining specific documents are being met.
It’s important to note that employment verification forms, including I-9s, do have specific recordkeeping requirements for terminated employees.
If the terminated employee:
- Worked less than 2 years: Records must be kept 3 years after the start date
- Worked for more than 2 years: Records must be kept 1 year after the termination date
How Long Do You Have to Keep Payroll Records?
Under the ADEA, all payroll records must be kept for at least 3 years. However, the IRS requires an additional year of retention for tax purposes, meaning all employers should be maintaining payroll records for a minimum of 4 years.
Beyond standard payroll records, any documents used to calculate wages must be retained for at least 2 years. Wage calculation documents include employee time cards / piece work tickets, wage rate tables, employee time schedules, and any documents that have additions or deductions to employee wages.
Best Practices for Organizing Employee Records in the Workplace
With so many different employee forms and workplace records required under different laws, employers need to consider their inventory of important documents and formulate a plan to organize them effectively.
For employers struggling with workplace record management, here are some best practices for managers to follow to get a process started:
- Identify required employee records: Document all key record types your organization must maintain (use the chart above to help identify important documents)
- Get an overview of recordkeeping requirements: Review the applicable laws and requirements for laws such as FLSA, EEOC, and USCIS
- Develop a record retention policy: Establish guidelines for record archival, destruction, and timelines for retention
- Categorize workplace records: Separate personnel files, payroll documents, regulatory forms, etc.
- Standardize an organizational system: Use consistent terms and folder structures for simple retrieval
- Limit who can access records: Delegate records management head and team of authorized individuals
- Use digital document storage tools: Utilize a secure network to host digital documents to increase record accessibility
- Train your HR / management team: Ensure all individuals handling sensitive documentation understand the company policy, processes, and requirements
- Establish secure disposal procedures: Communicate processes for physical or digital destruction, document destruction when necessary
- Conduct regular internal audits: Review records to confirm accuracy, completeness, and compliance with retention requirements
How HR Compliance Solutions Help Employers Manage Workplace Records
Investing in compliance-focused tools can add an extra layer of protection to your business. Without on-demand compliance support, employers are left tracking retention rules manually and reacting to regulatory changes when it may be too late. Employers should stay proactive by using comprehensive HR compliance solutions at their disposal to fully understand the recordkeeping requirements they’re subject to.
Employers will want to look for a complete HR compliance package that supports the following:
- Easy access to regulatory HR forms applicable to businesses nationwide
- On-demand access to HR experts when an important question arises
- Modern technology for additional guidance, such as AI assistance tools
- Features to help build and review your employee handbook
- Access to timely news articles regarding federal, state, or local regulatory updates
Take Control of Your Workplace Records
Taking the time to restructure the way your business manages recordkeeping procedures will help keep your business safe from costly legal complications. Frantically searching for misplaced documents or needing to make on-the-fly corrections are the last things your business wants to encounter, especially during a regulatory audit.
Safeguarding your business with practicable procedures and HR compliance resources reduces the headaches of your routine recordkeeping duties while giving you peace of mind knowing that every document and form is handled carefully and is audit-ready when the time comes. If your business needs help restructuring its record management process or staying compliant with evolving regulations, contact us for expert-level guidance and support.
