Employer Record-Keeping Requirements

Why Record-Keeping Matters

Proper record-keeping protects your organization in the event of audits, lawsuits, or regulatory inquiries. Federal and state laws mandate specific retention periods for various employment records.

Federal Retention Requirements

Payroll Records (FLSA)

Keep for at least 3 years:

• Employee name, address, date of birth, sex, and occupation
• Hours worked each day and each workweek
• Regular hourly rate, total wages, and deductions
• Dates of payment and pay period covered

Hiring and Employment Records (Title VII, ADA, ADEA)

Keep for at least 1 year from the date of the personnel action:

• Job applications and resumes (both hired and not hired)
• Interview notes
• Job postings and advertisements
• Tests and test results
• Selection criteria

I-9 Forms

Retain for the longer of:

• 3 years from the date of hire, or
• 1 year after the date of termination

Tax Records (IRS)

Keep for at least 4 years:

• Employer identification number records
• All employment tax returns (941, 940, W-2, etc.)
• Dates and amounts of deposits

FMLA Records

Keep for at least 3 years:

• Leave requests and approvals
• Medical certifications
• Employer notices
• Records of disputes

OSHA Records

• Injury and illness logs: 5 years
• Exposure records: 30 years
• Medical records: Duration of employment plus 30 years

Benefits Records (ERISA)

Keep for at least 6 years:

• Plan documents and amendments
• Summary plan descriptions
• Annual reports
• Trust agreements

Organizing Your System

Digital Records

• Use a secure, backed-up electronic system
• Implement access controls based on need-to-know
• Maintain an audit trail for all changes
• Ensure electronic records meet legal standards for admissibility

Separate Files

Maintain separate files for:

• Personnel files: Performance reviews, disciplinary actions, promotions
• Medical files: ADA accommodations, FMLA documentation, workers' comp
• I-9 files: Keep separate from personnel files for audit purposes
• Investigation files: Complaints, investigations, and outcomes
• Benefits files: Enrollment forms, beneficiary designations

Destruction

When records reach the end of their retention period:

• Shred paper documents
• Securely delete electronic files
• Document the destruction
• Ensure you're not destroying records relevant to pending or anticipated litigation