Federal laws address the length of time that certain employee records must be kept, but not how long the entire personnel file must be kept. Some state laws require that personnel files be retained for a given period of time following an employee's termination. The retention periods range from 60 days to three years following termination. Make sure you know which federal laws apply to your business, and be sure to comply with the recordkeeping requirements of each applicable law.
We recommend that you retain such records and keep a personnel file for seven years after any employee terminates employment, since your business may be called upon to provide an employment reference for the employee in the future. It's also possible that you may be drawn into a dispute over the reason for the termination or over events that took place while the person was your employee. Presumably, your records will justify whatever actions were taken.
The following table sets forth the period of time that you must retain specific types of records to conform to federal legal requirements.
Federal Record Retention Rules | ||
---|---|---|
Information | Retention requirement | Law |
Employee name and any identifying number used in place of the name used on any work records | 4 years from tax due date or payment of tax, whichever is later | Social Security Act |
Social Security number | 4 years from tax due date or payment of tax, whichever is later | Social Security Act |
Employee home address, including zip code | 4 years from tax due date or payment of tax, whichever is later | Social Security Act |
Date of birth if the employee is under 19 | 3 years | FLSA, Equal Pay Act |
Date of birth of all employees | 3 years | ADEA |
Gender of employee | 3 years | FLSA, Equal Pay Act |
Occupation of employee | 3 years | FLSA, Equal Pay Act, ADEA |
Age records | No time period specified by law | ERISA |
Service record to determine whether an employee has worked 1000 hours or has incurred a break in service | No time period specified by law | ERISA |
Marital status record | No time period specified by law | ERISA |
Form I-9 | 3 years after hire or the date of recruitment or referral (if directed from an employment agency) or, after termination, for 1 year or 3 years after hiring, whichever is later | Immigration Reform and Control Act of 1986 |
Complete job application | 1 year | Title VII, ADA |
Resumes or other forms of employment inquiry | 1 year | ADEA |
Other hiring material | 1 year | Title VII, ADA |
Job orders submitted by an employer to an employment agency | 1 year | ADEA |
Test papers for a position if the test paper discloses the result of the test | 1 year | ADEA |
Results of any physical examination that is considered by the employer in connection with personnel action | 1 year | ADA |
Any advertisements relating to job openings | 1 year | ADEA |
Records of job movement (promotions, demotions, transfers) | 1 year | Title VII, ADA, ADEA |
Material relating to layoffs | 1 year | Title VII, ADA, ADEA |
Material relating to termination | 1 year Records of involuntarily terminated employees must be kept for a period of 1 year from the date of termination. |
Title VII, ADA |
Selection for training or apprenticeship | 1 year | Title VII, ADA, ADEA |
Requests for physical job accommodation | 1 year | ADA |
State Record Retention Rules
In addition to the federal rules, every state has enacted at least one antidiscrimination rule, and as you might expect, there are recordkeeping requirements associated with these state rules as well. See the discussion of state antidiscrimination rules for information regarding these state record retention requirements.
Copyright 2006, CCH INCORPORATED. All Rights Reserved.