The personnel file, often called the P-file, is the centralized repository containing an employee’s complete employment history with a company. This record serves as a comprehensive administrative and legal record of the working relationship for both the employee and the employer. Maintaining an accurate and consistent file is necessary for compliance with various employment laws and supports informed decision-making throughout an employee’s tenure.
Defining the Personnel File and Its Purpose
A personnel file is a secure, structured collection of documents detailing an employee’s relationship with their employer, from the initial application through separation. The file’s primary function is to provide an official record of the employment history, including job performance, compensation, and status changes. This documentation helps ensure that a company is compliant with labor laws and internal policies, especially concerning equal employment opportunity. The file acts as a reference point for administrative processes such as payroll, performance evaluation, and benefits management. It also provides documentation in case of internal disputes, external audits, or litigation, protecting both the employer and the employee by establishing a clear timeline of events.
Mandatory Documents for Initial Employment
The personnel file begins with documents generated during the hiring and onboarding process, many of which are legally required or standard practice. Core components include the employee’s job application, resume, and the formal offer letter outlining the terms of employment. Official tax and payroll documents, such as the signed IRS Form W-4, which determines federal tax withholding, must be included. Employers also keep documents related to benefits enrollment and signed acknowledgments confirming the employee received and understood company policies.
Records Tracking Ongoing Employment Status
Once employment begins, the personnel file accumulates documents tracking the employee’s career progression and official status. This includes annual performance reviews, which are formal evaluations of an employee’s work and contributions. Documentation related to compensation changes, such as salary increases or bonuses, and formal records of promotions, demotions, or transfers are recorded. Disciplinary actions, including written warnings, counseling memos, and performance improvement plans, are part of the file to document performance issues. The file should also contain training records, certifications, and all separation or termination paperwork, providing a comprehensive history.
Files That Must Be Kept Separate
Certain highly sensitive or confidential information must be segregated from the general personnel file to comply with specific federal laws. This separation protects employee privacy and limits the exposure of sensitive data to unauthorized individuals. The Medical File holds health-related records, including doctor’s notes, Family and Medical Leave Act (FMLA) requests, and documentation for Americans with Disabilities Act (ADA) accommodation requests, and must be kept confidential to comply with HIPAA and ADA regulations. The I-9 Employment Eligibility Verification forms are also stored separately due to specific government inspection rules. Background check reports, credit reports, and drug test results should also be kept in a separate, confidential file once the hiring decision is finalized.
Information That Should Never Be Included
To minimize legal risk and maintain an unbiased record, employers must exclude certain categories of information from the personnel file. Documents referencing an employee’s protected characteristics, such as race, religion, national origin, marital status, or age, should be kept out. The file should only contain factual documentation related to job performance and employment status, not subjective opinions, gossip, or unproven allegations. Marginal notes, unsubstantiated rumors, or documentation from internal investigations that did not result in formal disciplinary action should be excluded. Including non-factual or discriminatory information can expose the employer to significant liability.
Employee Rights to Review and Access
An employee’s right to review their personnel file is not guaranteed by federal law; however, laws in approximately two dozen states grant access rights. These state laws dictate the frequency with which an employee can request a review, such as once or twice per year. The laws also specify conditions for viewing the records, which may require a written request and often mandate that the review occurs on company premises during business hours, sometimes with an employer representative present. In many states, employees have the right to obtain copies of the documents and submit a written statement to challenge or correct inaccurate information. Employees should check their specific state laws to understand the procedures and limitations regarding access.
Retention Requirements and Disposal
Employers are legally obligated to retain personnel files for a specific period after an employee separates from the company. Retention periods are governed by various federal laws, including the Fair Labor Standards Act (FLSA) and Title VII of the Civil Rights Act. These federal guidelines often require keeping records for periods ranging from one to four years after termination, though some state laws may require longer retention. Once the legal retention period expires, the files must be disposed of securely, typically through shredding or other confidential destruction methods.