December 31 Tip of the Week

“Employee Personnel Files”

Proper management of employee personnel files is essential for legal compliance.  An employer should start a personnel file for every employee with the employee’s resume or application, offer letter, and contact information.  Personnel files should be maintained by management or a human resources department and updated every time there is a change in the terms and conditions of the employee’s employment. Notes of verbal counselling or coaching, verbal and written warnings, and performance improvement plans should always be kept in the employee’s personnel file. 

Some documents should not go into the personnel file.  Forms I-9 must be kept in one Form I-9 file with all employee Forms I-9 in case the Forms a requested for an audit.  Medical information about an employee should be kept separately in a confidential medical file, accessible only to those with a genuine business need to view the file.  Some states require employers to allow current and former employees to access their personnel files; other states do not.  Laws differ among states that require employee access to personnel files with regard to how an employee may view their personnel file (in person with an employer representative present or receiving a physical copy by mail) and what should be redacted before the employee receives the file. Maintaining thorough, organized personnel files and knowing the laws of your state(s) of operation will keep your business legally compliant.