Critical HR Recordkeeping: From Hiring to Termination
Employee record retention is a daunting task for employers because there are so many different requirements based on a variety of criteria. For example, virtually every federal employment law, ranging from the Americans with Disabilities Act to Title VII of the Civil Rights Act, stipulates certain record-retention rules for all private sector employers. In addition, many state and local jurisdictions impose additional requirements.
Record retention is complex and time consuming. However, in addition to complying with various federal and state laws, keeping good, well-organized records can be very helpful in documenting and supporting an organization’s employment actions. The best way to ensure that your records are in good order is to establish and publish a record-retention policy. It’s wise to consult with legal counsel, and you may want to engage the services of record-retention specialists who can help you customize your record-retention policies and practices to fit your specific situation.
Recordkeeping also assists in managing human resources by providing hard data on the effectiveness of policies and procedures. For example, records of accidents in the workplace help identify why accidents are occurring and how to prevent them. Records also help prove compliance with government regulations. For example, documentation of equal employment opportunity practices can help show that an employer is in compliance with Title VII of the Civil Rights Act.
Records provide documentation to defend—and even drive—employment decisions. They can help when defending against a lawsuit brought by an employee or employees under one of the employment laws.
Responsible record-keeping practices begin long before a job candidate walks through the door and extend long after an employee leaves an employer.
Litigation is the ultimate test of the adequacy of an employer’s record-keeping practices. There are a whole host of laws that require employers to keep certain records on their employees for various lengths of time, and even after the employment relationship has terminated.
As a practical rule of thumb, the attorneys recommend that employers keep employees’ records for the duration of the employment relationship, plus an additional 5 years. This satisfies the requirements of every record-retention law except:
1. Pension and welfare benefit plan records, which must be kept for 6 years after
the termination of the employment relationship; and
2. Safety and toxic chemical exposure records, which must be kept for 30 years
after the termination of the employment relationship.
SPHR suggest breaking HR recordkeeping into three categories:
1. Hiring;
2. Employment relationship; and
3. Termination.
I will cover the details of these three categories in my next report.
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