What Should (and Shouldn’t) You Keep Inside Every Personnel File?
May 17th, 2011As a Staunton staffing agency, we understand that maintaining personnel files is often a difficult and tedious task. However, having accurate information on your employees simply makes good business sense. In addition, you may encounter instances, such as an IRS audit or a lawsuit filed by a disgruntled employee, when you need to quickly produce information and documentation on that employee – making these files critically important.
So what should you keep in your employees’ personnel files? Here are some recommendations.
What to Keep in Personnel Files
Create a file for each employee on his or her date of hire and include information such as:
- Job application and/or resume
- Reference letters
- Job offer letter and information
- Contracts (including any non-disclosure agreements and non-compete agreements)
- Salary and benefits forms and information (health insurance, retirement benefits, etc.)
- Job description for the position
- IRS W-4 form
- Acknowledgement of the employee handbook (if you have a handbook)
- Emergency contacts
- Performance appraisals
- Complaints from customers and co-workers
- Disciplinary action, including warnings
- Awards, recognitions, and/or promotions
- Records on attendance issues
- Records of certifications or completion of training programs
- Documents relating to an employee’s departure, including information garnered from an exit interview, termination or lay off notices, COBRA information, and unemployment forms
Just a note: Considering the sensitive nature of the information contained in these files, it’s important to keep them locked in a fire-proof file cabinet.
What Not to Include
While there are plenty of documents that should be in every personnel file, there are certain items you will want to avoid including, such as the following:
I-9 forms.
These should be kept in a separate folder set aside for the U.S. Citizenship and Immigration Services, should they come calling. The government can ask to inspect these forms at any time and you don’t want them to also be able to access the rest of your employees’ personnel files in the process.
Medical records.
If a disability occurs, you are required by law to keep that employee’s medical records in a separate file with limited access. In addition, the Americans With Disabilities Act (ADA) requires careful handling of any information obtained through post-offer medical examinations, including that these records must be kept separate and confidential from other personnel files.
Unnecessary personal notes.
Don’t include any notes that are unrelated to the employee’s job performance or qualifications, such as your personal feelings about an employee or references to their private life, such as religious beliefs. If a lawsuit is ever filed, these notes could come back to haunt you in the end.
When maintaining personnel files, it’s also important to periodically review each employee’s file to ensure information is accurate and up-to-date. For instance, if a new hire has successfully completed their probationary period or an employee received a promotion, you’ll want to make a note of those events.
And if you need some help managing your employees, and all the paperwork that comes along with them, please contact Adams & Garth. As one of the leading Staunton staffing agencies, we offer a payrolling solution that allows you to recruit and identify candidates, while payroll for those employees is handled by us, eliminating the associated hassles, headaches, and liabilities. Contact us today to learn more!

