Managing employee records isn’t the most glamorous part of HR, but it’s a critical one, especially in healthcare practices where compliance, confidentiality, and clarity are key. We consulted with Debbie Strawser of Reserve Squad to find out what should be included in employee files, what belongs elsewhere, who can access what, and how long you need to retain each type of record.
What Belongs
An employee file should tell the full story of someone’s employment from application to exit. Here are the core components:
- Hiring Documents: Application, resume, offer letter, employment agreement, background check results, and handbook acknowledgements.
- Compensation Records: Starting pay, any merit increases or adjustments, and promotions that impact
- Performance and Other Feedback: Appraisals, disciplinary notes, letters of praise, and relevant attendance documentation. Keep good and bad
- Licenses and Certifications: Keep current copies and verify independently (especially for roles like nurses or other credentialed staff). A tickler system can help track
- Training Records: Especially HIPAA and compliance-related You can also store these in a master training file as long as they’re accessible.
- Payroll-Related Info: Garnishments, employment verifications, and emergency contact information.
- Separation Documents: Resignation letters, termination paperwork, unemployment claims, and severance agreements.
What to Keep Separate
Certain information should never be stored in the general employee file:
- Medical and Leave Info: FMLA paperwork, accommodation requests, doctor’s notes, workers’ comp claims.
- Benefit Enrollment Forms: Especially those that include Social Security numbers, dates of birth, or health conditions.
- Drug Testing Results: Store separately and securely.
- Forms I-9: Best practice is to keep these in a separate binder or file, organized, and up to date.
- Investigation Files: If no action is taken following an internal investigation (e.g., harassment claims), store those notes apart from the general file.
Paper vs. Electronic Files
Electronic HR systems can reduce paper clutter as long as they’re secure and easily searchable. If you’re working with physical files, invest in divided folders to organize sections like hiring, performance, pay, and separation. Store all files in a locked cabinet, in a secure space, with limited access. Another important consideration is disaster recovery scenarios where physical copies of records can be destroyed or are inaccessible for long periods of time.
Who Gets Access?
Access to employee files should be limited. Managers may need to see resumes or performance reviews but not benefit or medical information. If an employee requests to review their file, schedule a time, and only share documents they’re entitled to see, such as anything they’ve signed.
Never release employment or payroll information to outside parties (e.g., for loans or job references) without a signed release from the employee.
Law enforcement/government requests – dates of employment and position are fine. Check with legal counsel if more information is required.
How Long Should You Keep It?
Here’s a quick guide to retention:
- Forms I-9: 3 years after hire or 1 year after termination, whichever is later.
- Recruiting Documents: 1 year after hire or when the search is ended, unless applicants are challenging decision, then keep longer.
- Background Checks: At least 5 years (this can vary by industry, so check your requirements).
- Disciplinary Records: Best to retain for the duration of employment.
- Benefit & ERISA Docs: At least 6 years post-employment but often longer for retirement plans.
- FMLA Records: 3 years after the leave ends.
- Payroll Records: 5 years minimum
When it’s time to dispose of records, do so securely. Shredding is your safest bet or work with a professional disposal firm.
Need Help or Have Questions?
If you’re unsure how to set up or manage your employee files or have any other HR needs, reach out to our team at Scroggins. We’ve helped medical practices navigate these and many other challenges for over 80 years and are happy to help.
Debbie Strawser, SPHR, SHRM-SCP
