Records retention requirements in Human Resources

Retaining the necessary HR & Payroll records is the law! California law has certain rules and requirements for what type of employment and payroll records employers must keep. Recordkeeping is crucial as it can be used to defend employers in the event of employment-related litigations and lawsuits.

Failure to comply with records retention laws may result in heavy fines. Monetary penalties are imposed if employers fail to comply by these recordkeeping policies.

Certain work injuries require you to maintain workers compensation files and information for 30 years! OSHA requires that employers keep regular reports of any on-the-job injuries. After an employee has experienced an injury in the workplace, workers’ compensation claim documents must be kept for a specific time period. Typically employees who have been exposed to toxic substances or blood-borne pathogens must have their documentation kept for up to 30 years after they no longer work for the company.

Know the law – what documents need to be kept for how long. (They include but are not limited to: Payroll records, Hiring and job placement records, wage records, employee benefits data, FMLA records and employee personnel files, just to name a few!). Federal requirements may differentiate from California requirements so it’s important for HR managers to know the retention period for each type of record. For instance, payroll records, according to California law, must be kept for 2 years whereas public works contracts must be kept for 3 years.

Call ECG to find out what records you must keep and for how long. Our experienced HR Consultants know all there is to know about recordkeeping and records retention. If you are unclear about a certain document; please give us a call and we can assist you. Have the peace of mind in knowing that you are complying with state and federal laws and are free from potential litigation.