One of the inconvenient truths about HR is that, even in this modern age, there is a lot of paperwork. And a lot of rules about how long employers need to retain said paperwork. Let’s break down some of the most common records and how long you need to keep fighting the paper cut monster with each based on federal rules for most employers. Be sure to check the records retention requirements for your type of business and state rules too.
Another truth about active employee personnel files is that many HR practitioners keep active files with all of the records throughout the individual’s employment, in case there is an employment dispute later. Here’s why:
You need to keep your files for a longer period of time if there is a charge of discrimination filed under Title VII of the Civil Rights Act, the Americans with Disabilities Act (ADA), the Age Discrimination in Employment Act (ADEA), or the Genetic Information Nondiscrimination Act (GINA). In the event of a civil action brought by the Equal Employment Opportunity Commission (EEOC) or the Attorney General, you must retain all records related to the charge or action until “final disposition” as defined by the EEOC. The date of final disposition means the expiration date of the statutory period within which the employee may bring an action in a U.S. District Court or, where such an action has been brought, the date on which such litigation is terminated.
One Year/52 Weeks/365 Days
Selection and Hiring
However you want to mark time, records related to employee selection and hiring need to be retained for one year after a hire/no hire decision or the creation of the document (whichever is later). So even if you determined a candidate was not a fit for your company, you need to hang on to the resume, application, interview notes, and anything else related to the hiring process. Do you use pre-employment screening tests? Keep those for a year. Post a job ad? Keep it for a year. The one-year clock starts ticking when the final hiring decision is made or the job requisition is cancelled, so if you have had a long interview process, the retention time will be longer than one year. Qualified federal contractors should retain records for three years. If you are subject to the Department of Transportation requirements for pre-employment drug screening, keep those records for five years.
Promotion, Demotion, Transfers and More
Once you bring an employee onboard, you’ll begin to generate paperwork as part of the normal lifecycle. The federal requirements say you must keep files for one year that are related to:
Involuntary Employment Terminations
If an employee is involuntarily terminated, their personnel records must be kept for at least one year from the date of employment termination.
Disability Accommodations
Finally, keep requests for reasonable accommodation from employees and applicants and your responses for a full year from the record date or action, whichever is later. (Public employers should retain for two years.)