Q.What should an employer do with the personnel files of terminated employees?
A.The law requires all employers to maintain recuitment, employment and personnel files. Failure to retain those records for the specified period of time periods can subject the employer to penalties and fines.
In general (your state may have a longer or shorter retention period) state and federal statutes require an employer to keep recruitment, employment and personnel information (performance reviews, complaints, final memos and correspondence) for a period of six years from the date of termination.
In addition to the documents contained in the employee's personnel file, pursuant to the IRS employee payroll records must be retained for a period of four (4) following the date of termination.
If filing space in your office is limited, you can box the files and place them in storage for the 6-year holding period.
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