When an employee is terminated, resigns, or retires, the retention of the employee’s records must not be overlooked. This is not just a matter of organizational best practice but also a legal requirement enforced by the Equal Employment Opportunity Commission (“EEOC”). Understanding these requirements is essential for employers to ensure compliance and mitigate potential legal risks.
Recordkeeping Requirements
The EEOC is a federal agency that enforces laws such as Title VII of the Civil Rights Act, the Age Discrimination in Employment Act (ADEA), and the Americans with Disabilities Act (ADA). To ensure that these laws are enforced appropriately, and that employees’ rights are protected, the EEOC has specific recordkeeping requirements that employers must adhere to regardless of whether a Charge of Discrimination has been filed against the employer.
In accordance with the Code of Federal Regulations and the Age Discrimination in Employment Act (“ADEA”), the EEOC requires private employers to retain general employment records for a minimum of 1 year from the record’s creation date or the employee’s separation, whichever comes later. Educational institutions, state, and local governments must retain these same documents for 2 years from the record’s creation date or the employee’s separation.
General employment records include application forms, performance evaluations, disciplinary actions, emails, and all other records related to employment.
If an employee files a Charge of Discrimination, the recordkeeping requirement is extended. Employers must retain records relevant to the Charge for the duration of the investigation and any additional legal proceedings that follow.
Outside of the EEOC, the Fair Labor Standards Act (“FLSA”) requires that all payroll records, including information on wages, hours worked, and other compensation details, must be kept for a minimum of 3 years.
Why Recordkeeping Matters
In addition to legal compliance, the proper retention of employee records can be helpful in many ways:
- Evidence in Disputes: In the event of a legal dispute, having comprehensive records could help an employer defend against claims.
- Data Integrity: Retaining records ensures that companies have accurate data for internal audits and reviews, which can improve overall HR practices and compliance.
Best Practices for Recordkeeping
- Develop a Record Retention Policy: Establish a clear policy outlining how long different types of records will be kept and ensure all employees involved are trained on these procedures.
- Implement Secure Storage Solutions: Whether physical or digital, ensure records are stored securely to protect employee information.
- Stay Current with the Help of an Employment Attorney: Laws and regulations can change. Regularly consult with an employment law attorney to review and update your recordkeeping practices to maintain compliance.
If you have questions about an employer’s duty to retain employee information, or any other employment law issues, please call our office at 301-441-1400 to schedule an appointment with one of our attorneys. www.thatcherlaw.com
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