Employment records compile the history of the professional relationship between an employer and an employee. These documents are created and maintained from the moment of application through the entire duration of employment and beyond. Systematic record-keeping provides the necessary documentation for managing HR functions, ensuring smooth business operations, and demonstrating adherence to various legal requirements. Understanding the composition and purpose of these records is important for both the organization and the employee.
What Constitutes an Employment Record
An employment record is defined as any information, physical or digital, that an employer generates or collects concerning an individual’s hiring, job tenure, or separation. This covers materials such as initial application forms, formal contracts, and internal communication logs regarding job performance. The scope of what constitutes an employment record is often shaped and mandated by federal and state regulations, which specify the exact documents that must be kept.
Employers must establish comprehensive record-keeping practices to ensure all mandated information is accurately captured and remains accessible. The resulting collection of documents serves as the official history of the working relationship. This documentation establishes a paper trail for all major employment decisions.
Key Categories of Employment Documentation
Personnel Files
Personnel files contain the core administrative documents related to an employee’s professional standing. This category includes job application materials, resumes, performance evaluations, and formalized disciplinary action reports. Employers must keep Form I-9, which verifies employment eligibility, but it is often stored separately from the general personnel file for compliance purposes. Documentation related to an employee’s eventual termination or separation is also housed within this file.
Payroll and Compensation Records
This documentation focuses on the financial aspects of the employment relationship and is subject to federal oversight, especially under the Fair Labor Standards Act (FLSA). Records in this category include detailed time cards, records of wages paid, and calculations of overtime hours worked. Employers must maintain documents like the W-4 withholding certificate and annual W-2 tax forms, alongside detailed records of benefit enrollment, deductions, and salary history. These records demonstrate compliance with minimum wage and overtime laws.
Health, Safety, and Medical Records
Records concerning an employee’s health are subject to strict confidentiality requirements. This file includes medical information, such as physician notes submitted for leave requests or documentation supporting an accommodation under the Americans with Disabilities Act. Documentation related to Family and Medical Leave Act (FMLA) requests and results from pre-employment or random drug testing are also stored here. Employers must also maintain specific records detailing workplace injuries and illnesses, such as mandatory OSHA incident reports, which track safety performance.
Training and Development Records
This collection tracks an employee’s professional qualifications and ongoing education received while employed. Documentation includes formal certifications, transcripts from training programs, and logs verifying the completion of mandatory compliance training. These records demonstrate that the employee possesses the necessary skills and has satisfied any regulatory requirements related to their position. Tracking development history also assists the employer in planning for future skill needs and succession within the company.
The Purpose of Maintaining Employment Records
The primary function of maintaining employment history is to ensure the organization remains in compliance with employment laws. Accurate records allow employers to demonstrate adherence to requirements spanning anti-discrimination statutes, wage and hour regulations, and occupational safety standards. This documentation provides objective evidence that the company has followed proper procedures and policies in its treatment of staff members.
Operational continuity represents another significant reason for systematic record-keeping. Human Resources departments rely on these files to manage benefit enrollments, calculate seniority for promotion purposes, and track accumulated paid time off balances. The data is also necessary for strategic planning efforts, such as identifying candidates for professional development or preparing for leadership transitions.
Records also serve a defensive function, providing necessary proof in the event of an audit or litigation. Should a dispute arise over an employee’s pay, termination, or disciplinary action, the detailed documentation provides the employer with an objective history of events and decisions. This allows the organization to defend its actions against claims, utilizing contemporaneous records as factual evidence in court proceedings.
Employee Rights to Access and Review Records
While employment records belong to the employer, staff members generally possess the right to access and review the contents of their own personnel file. This right is largely governed by state-specific laws, which introduce variability in the access rules granted across different jurisdictions. These rules dictate how frequently an employee can request a review and whether they are allowed to obtain copies of the documents or simply inspect them.
Most jurisdictions require an employee to submit a written request to the employer to initiate the review process. Employers typically have a defined period, often ranging from a few days to several weeks, to fulfill this request. The file must usually be made available at the workplace during normal business hours, and the employee is generally permitted to review it under supervision.
Employees also hold the right to request the correction or addition of information if they find the file to be inaccurate or incomplete. This allows an individual to contest the factual basis of a performance review or disciplinary notice. They can append a written statement to the record, ensuring the file reflects the employee’s perspective alongside the company’s documentation.
How Long Records Must Be Kept
Record retention periods are not uniform and depend heavily on the specific type of document and the governing federal or state regulation. Federal law often requires basic payroll and compensation records to be kept for three years for wage and hour compliance purposes under the FLSA. However, documents related to employee benefits or pension plans often require a significantly longer retention period, sometimes extending up to six or seven years after an employee’s termination due to specific ERISA requirements.
State laws frequently impose longer retention requirements than federal mandates, requiring employers to comply with the more stringent standard. Records related to hiring and job applications for non-hired candidates must also be retained, typically for one to two years, to demonstrate non-discriminatory hiring practices. Once the statutory period expires, employers often destroy the documents using secure methods to mitigate the risk and liability associated with holding sensitive information.