You should keep a personnel file for each of your employees, containing every important job-related document, including job applications, offer letters, employment contracts, benefits and salary information, government forms, performance evaluations, and disciplinary actions.
However, there are some things you shouldn't keep in personnel files: I-9 forms and medical records. For each of your employees, you must complete and keep Form I-9, provided by the agency now known as U.S. Citizenship and Immigration Services (USCIS, formerly called the INS). You should keep these forms in a separate I-9 folder for all employees, however, not in the employees' individual personnel files. As to medical records, the Americans With Disabilities Act (ADA) imposes strict rules on the use of information obtained through medical examinations and inquiries.
For more on personnel files, including tips on keeping them up to date, see What You Should -- and Shouldn't -- Keep in Employee Personnel Files.
Do I need to keep any forms proving that my employees are legally allowed to work in this country?
Yes. For each of your employees, you must complete and keep Form I-9, provided by the agency now known as U.S. Citizenship and Immigration Services (USCIS, formerly called the INS). Within three days of starting employment, your employees are required to show you documents proving their identity and their right to work in the United States. You must verify, on the form, that you have reviewed these documents for each employee. You should not keep this form in the employee's regular personnel file, however.
Who is allowed to see an employee's personnel file?
In most states, employees -- or former employees -- have the right to inspect at least certain documents from their own personnel files. Typically, if your state allows employees to see their files, you can be present for the inspection, to make sure nothing is added, removed, or altered.
Generally, you should treat personnel files as you would any other private records. Limit access to those with a need -- or a legal right -- to the information. A reasonable policy might allow access to you, the employee, and the employee's supervisor or manager, as necessary, to make personnel decisions.
To learn more about keeping personnel files confidential while allowing access to those with a need or right to inspect them, see Who Has a Right to View Personnel Files?
DISCLAIMER: This site and any information contained herein are intended for informational purposes only and should not be construed as legal advice. Seek competent legal counsel for advice on any legal matter.
Kundra & Associates, with its primary office located in Rockville, Maryland, advises and defends individual and business clients in tax controversies and tax litigation with the IRS and state and local tax authorities. The firm represents American citizens living abroad, as well as local and national clients in Maryland, Virginia, and Washington, DC, in communities such as Bethesda, Frederick, Baltimore, Ellicott City, Annapolis, Gaithersburg, Upper Marlboro, Potomac, Germantown, Montgomery Village, Columbia, Silver Spring, Catonsville, Elkridge, Glen Burnie, Pikesville, Towsen, Cockeysville, Westminster, Taneytown, Thurmont, Myersville, Hagerstown, Arlington, McLean, Alexandria, Annandale, Springfield, Fairfax, Reston, and other communities in Montgomery County, Howard County, Baltimore County, Anne Arundel County, and Prince George’s County.The firm also represents clients internationally in countries such as the United Kingdom, France, India, Canada, Africa, Cyprus, Lebanon, Belgium, Italy, Israel, Mexico, Ghana, Nigeria, Venuzuela, Columbia, Zimbabwe, South Africa, China, Pakistan, Afganistan, Indonesia, Bahamas and the Caymen Islands.
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