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Best Practices in Maintaining

PERSONNEL FILES

Presented by:Shellie Haroski, SPHR, SHRM-SCP, Senior HR Consultant

Training Topic Overview

1. Benefits of Well Organized Files

2. Fair Labor Standards Act (FLSA)

3. Contents of a Personnel File

4. Contents of a Confidential File

5. I-9 and E-Verify Files

6. Internal File Audits

7. Retention Requirements

8. Electronic Files

Benefits of Well Organized Files

• Ease of quick and accurate retrieval

• Ensure file integrity

• Protect employee and employer data

• Increased compliance

• Increased confidence

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Fair Labor Standards Act (FLSA)

• Locked, fire proof file cabinet, locked office

• Limited access – need to know basis

• Record Keeping Requirements:

– Demographics

– Workweek (time and day workweek begins)

– Hours worked each day and each week

– Deductions

– Pay rate, regular wages per pay period, daily or weekly straight timeearnings, compensatory time (if applicable)

– Overtime wages per week

– Date of payment and pay period covered by payment

How many filesshould an employee

have?

How to Divide Documents…

Employees should have at least 3 separate files:

– Employee/Personnel File

– Confidential File

– I-9/E-Verify Documentation File(all employees combined)

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Contents of a Personnel File

• Employment Documents - Application, Resume, Reference Checks,Offer Letters, Employee Information, Emergency Contacts, SC Terms ofEmployment, etc.

• Contracts or Agreements - Non-Compete, Non-Solicitation, Non-Disclosure/Confidentiality

• Payroll Information - Direct Deposit forms, W-4, Salary Changes, TimeCards, Deductions

• Company Acknowledgements – New Hire Checklists, HandbookAcknowledgements (2 pages), Signed Job Description, Safety Policies,Miscellaneous Policies

• Performance Documents - Evaluations, Disciplinary Actions, Training

Contents of a Confidential File

• Doctor’s notes, Medical information

• Documents pertaining to leaves of absence, FMLA

• Benefit Enrollment, Waiver, Changes

• Pension, Savings Plan enrollment, Waiver, Changes

• COBRA notice and election, Waiver, Changes

• Insurance claim forms

Contents of a Confidential File

• Background, Drug Test, Credit Check, MVR, Physical, etc. releaseforms and results

• Garnishments and other legal documents

• Workers Compensation, Work-related injury documents

• Disability documentation (requests, approvals, etc.)

• Interview Notes

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I-9 and E-Verify Files

• Employees hired after 1986 should have an I-9

• Employees hired after 2012 should have an E-Verify

• Can be filed together

• Do not belong in personnel or confidential file - must befiled separately

• Backup documentation – all or nothing

Employee Access to Files

• Permissible to allow employee to review personnel file

• Best practices include:

– HR Manager (or representative) must be present

– Items may not be removed by employee or copied – these

are Company records

– Any notes that are meant to be confidential can be removed

– If an employee disagrees with any information, they have the

right to add a statement of disagreement to the file

Internal File Audits

• Conduct periodic internal audits

• Are there documents that need to be updated?

• Do you have all the documents you need to have?

• Do you have all the documents you want to have?

• Minimize risk and exposure

• Purge when appropriate

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Retention Requirements

• Personnel Files – referencehandout

• I-9 and verificationinformation – later of 3years from date of hire or 1year from term date

• Payroll records – 7 years

Consideration of E-Files

• Scanning ability, cumbersome to establish

• Ability to index, store, preserve, retrieve, reproduce electronicrecords

• Reproduce legible and readable hardcopies when needed

• Controls to ensure integrity, accuracy, readability of e-files

• Controls to prevent/detect unauthorized creation, addition,alteration, and deletion of e-records

• Aware of numerous laws that govern retention requirementsof electronic employment records

• Maintain separate filing system

Benefits of E-Files

• Increased productivity and accuracy

• Increased security and confidentiality

• Increased efficiency

• Increased consistency

• Increased compliance efforts

• Simplification

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Challenges with E-Files

• Cost and time associated with converting all files

• Potential for security threat internally and externally

• Access with portable devices may reduce security

• Cost associated with maintaining electronic records

Contact Information

Shellie Haroski, Senior HR Consultant,SPHR, SHRM-SCP

sharoski@fgp.com

864.553.7253