Professional Tax Practitioner & Bookkeeper

Record Retention Essentials:

Pop quiz time: You’ve tackled your piles of papers and now have a system in place for

maintaining proper records on all employees. But which records are you required to

The answer: It depends. There are a variety of federal statutes that require employers to

maintain certain paperwork on all their employees—and for a specified duration. These laws

require that, among other documents, employers retain payroll records, certain pre-hire

paperwork, health and safety logs, benefits-related forms, and employee I-9 forms. In addition

to the records that are required by law, employers should also be maintaining personnel files

on all employees that include job descriptions, training records, performance reviews and

disciplinary notices. These files are necessary for supporting and defending employment

Resumes & employment applications. Equal Employment Opportunity (EEO) laws 

require employers to retain all paperwork related to the pre-hire process, including job

ads and postings, resumes, employment applications, interview notes, employment

tests, and notes taken during the reference check process. If you are ever called upon to

defend your decision in selecting a particular candidate, these records are critical for

demonstrating your choice was job-related and not based upon discriminatory

Retention period: For non-hires, records relating to candidacy should be retained for at

least one (1) year. For applicants that are hired, keep their resume and application in

New hire paperwork. When new employees come onboard it’s recommended that

they complete the following paperwork: offer letter, employment agreement, non-

compete and confidentiality agreements as well as an acknowledgment of the

employee handbook. Note: I-9 forms and W-4 forms are also required to be completed

Retention period: All new hire paperwork should be retained for the duration of one’s

employment with the company. It’s also recommended that these records be kept for a

I-9 form. In addition to the recommended new-hire paperwork, all new hires must

complete the Employment Eligibility Verification Form, also known as the I-9 form,

within three (3) days of hire. The I-9 form requires the employee to provide evidence of

their eligibility to work in the United States by way of a government issued passport,

driver’s license or other approved form of identification. Although not required, it is

recommended that employers keep copies of the documentation presented by each

employee as proof of their eligibility to work in the United States.

Retention period: I-9 forms must be retained for three (3) years from date of hire or one (1) year

Performance records. Employers should maintain all records of employee performance,

including performance reviews, disciplinary notices, attendance records, and records

of trainings completed. Maintaining records relating to an employee’s performance and

conduct is necessary for supporting decisions concerning pay raises, promotions,

Retention period: In case employers are ever called upon to defend an employment decision,

it’s recommended that performance-related records be maintained for at least three (3) years

ADA-related documentation. The Americans with Disabilities Act (ADA) requires

employers to maintain applications for disability benefits, medical certifications, and

requests for reasonable accommodations. Important: The ADA requires employers to

maintain employee medical records in a secure file separate from the employee’s

Retention period: These documents must be kept for a period of at least one (1) year. If a

charge of disability discrimination or a lawsuit has been filed against the employer under

Leave records. Anytime an employee requests time off, employers should require that

they complete a leave request form. The dates of leave should be provided within the

request as well as the signature of the authorizing supervisor. In cases in which an

employee takes Family Medical Leave (FMLA), employers are required to retain records

indicating the dates FMLA leave was taken, premium payments made by employees out

on FMLA leave, copies of requests for leave, and records of any disputes regarding the

designation of leave as FMLA. Practice tip: Require that copies of leave requests

Reminder: Employee medical records and the medical records of family members must be

Payroll records. The Fair Labor Standards Act (FLSA) requires employers to

maintain the following records on all employees: basic employee information including

name, address, occupation, birth date (if under the age of 19), and gender; complete

payroll records including hours worked, overtime, and wage deductions; attendance

Benefits forms. Summary plan descriptions (SPD), notice of plan changes & annual

reports must be retained by all employers offering group benefit plans.

Health & safety records (OSHA logs). The Occupational Safety and Health (OSH Act) 

requires employers with 10 or more employees to maintain logs of workplace injuries and

illnesses by completing Forms 300, 300A and 301. Note: OSHA has recently launched

its Recordkeeping National Emphasis Program (NEP), subjecting select employers to

comprehensive injury and illness record reviews.Employers should take time now to

review their OSHA recordkeeping practices in order to prepare for a possible NEP

Retention period: OSHA logs must be kept for a period of 5 years from the year of which

they relate. Records of any medical examination required by OSHA or records related to

employee exposure to toxic or hazardous agents must be retained for 30 years after the

With the multitude of laws governing which files employers must maintain and for how long, it’s

no wonder improper recordkeeping practices is one of the most cited DOL violations. Keep the

above requirements in mind to ensure you are keeping appropriate records on all employees and

that you are retaining these records at least as long as is required by law.