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TRANSCRIPT
11/9/2016
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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
864.553.7253