Maintaining proper employment records is one of the most important, yet often overlooked, responsibilities for HR professionals and employers. Accurate recordkeeping not only ensures compliance with federal and state laws but also protects organizations in the event of audits, legal claims, or regulatory investigations.
What Records Employers Must Keep
Different laws require different types of records. Key categories include:
- Payroll and Wage Records
- Hours worked, pay rates, overtime calculations, and deductions
- Employee classifications (exempt vs. non-exempt)
- Benefits contributions and withholdings
- Hiring and Employment Records
- Job applications and resumes
- Offer letters and employment contracts
- Records of promotions, transfers, and terminations
- Leave and Accommodation Records
- FMLA leave requests and approvals
- ADA accommodation requests and documentation
- Health and Safety Records
- OSHA injury and illness logs
- Workplace inspections and safety training records
- Anti-Discrimination & Harassment Documentation
- Complaints, investigations, and resolutions
How Long to Keep Records
Retention periods vary by record type and applicable law:
- Payroll Records: Typically 3 years for wages and 4 years for tax records
- Hiring Records: 1 year for rejected applicants
- FMLA Records: 3 years from the date leave ends
- ADA Accommodation Requests: 3 years after termination
- Health & Safety Records: OSHA requires 5 years for injury/illness logs
- Employment Actions: 1 year after termination
It’s critical to review both federal and state laws to ensure retention periods are met.
Record Format
Records may be maintained in paper or electronic format, but electronic records must be:
- Secure: Protected against unauthorized access
- Accessible: Easily retrievable for audits or employee requests
- Reliable: Accurate and complete, with clear documentation
Best Practices for Employers
- Create a Recordkeeping Policy – Clearly outline what records are kept, for how long, and in what format.
- Centralize Storage – Keep records in a secure, organized location (physical or digital).
- Train HR Staff – Ensure employees responsible for records understand retention requirements.
- Review Regularly – Conduct audits to verify records are complete, accurate, and properly stored.
- Plan for Data Disposal – Securely destroy records once the retention period expires to protect sensitive employee information.
Proper recordkeeping is more than just a regulatory requirement—it’s a safeguard for both employers and employees. By understanding what must be kept, how long, and in what format, organizations can minimize risk, ensure compliance, and build a foundation for consistent HR practices. Reach out to aHRrow for help creating a recordkeeping policy.