Being a business owner can be extremely rewarding and stressful at the same time. You have the benefit of knowing you are running a successful company, but with owning a business comes numerous responsibilities. One of the things you must pay attention to when you own a business is how you keep records, specifically, your employees' records. There are numerous laws and regulations you must follow when you own a business, and there are laws about employee recordkeeping. It is important you comply with these regulations so you do not find yourself in trouble with the government.
A personnel file is one maintained for every employee’s personal information. Items that should be kept and updated in a personnel file include:
The United States Equal Employment Opportunity Commission (EEOC) states all employee personnel records must be kept for one year after the employee quits or is terminated.
An employee’s payroll file should contain any and all information pertaining to their compensation history and government files. Items in a payroll file should include:
According to the Age Discrimination in Employment Act (ADEA) and the Fair Labor Standards Act (FLSA), employee payroll files must be kept for at least three years.
The Americans With Disabilities Act (ADA) requires an employee’s medical records to be kept separate from their personnel file. The medical file should include information about the employee’s medical history and contain information such as:
Recordkeeping is the backbone of any well-organized business. If you think you may be failing to keep up with good recordkeeping practices, talk to a Schaumburg, IL employer lawyer. If you are ever audited or need to prove you have been complying with various employment laws, good records are critical. Call the Miller Law Firm, P.C. at 847-995-1205 to schedule a free consultation.
Sources:
https://www.eeoc.gov/employers/recordkeeping.cfm
https://www.thebalancecareers.com/employee-records-1918109
https://www.dol.gov/general/topic/wages/wagesrecordkeeping