1. – KPA CONFIDENTIAL –
HR Recordkeeping Simplified
Thank you for joining us today.
We will begin at 10am Mountain Time.
2. – KPA CONFIDENTIAL –
HR Recordkeeping Simplified
Thank you for joining us today.
We will begin at 10am Mountain Time.
3. Questions
• If you have questions
during the
presentation, please
submit them using the
“Questions” feature
• Questions will be
answered at the end of the
webinar
4. Paper, Paper Everywhere!
• Each employee generates on average 100
HR transactions per year at an average
cost of $10 per transaction in
administrative processing and storage
costs*
• During an average tenure an employee file
will have between 25-32 pages
– Application
– Benefit Information
– Payroll Information
– Performance Management
4– KPA CONFIDENTIAL –
*Iron Mountain Document Management & ASUG/SAP Benchmark Study
5. Why It Matters
“Litigation is the ultimate test of the
adequacy of an employers record keeping
practice” Allen Kato, Fenwick and West
LLC
“Where is that darn file” HR managers
everywhere
“What do you mean you have no record”
Auditor
5– KPA CONFIDENTIAL –
6. The Golden Rule
Keep applicant records for one year
and employee records for duration of
the employee relationship plus 7
years
Exceptions:
Pension and welfare benefit plan records
must be kept 6 years after termination of
the employment relationship
Safety and toxic chemical exposure
records must be kept for 30 years after
termination of the employment relationship
6– KPA CONFIDENTIAL –
7. Hiring
• Job Posting
– Clear description of the job essential functions
• Job Applications
– Have each applicant complete and sign an
application
– Employment at will statement on all
applications
– Statement of truthfulness and accuracy and
that false information or omission will be
ground for rejection or termination
– Background checking authorization
– Arbitration Agreement
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8. Hiring
• Interview
– Ask only job related questions
– No statement that undermine the “at will
status”
– Use standard forms to record answers
• Offer Letters
– Confirms compensation and conditions of
employment
– No statement that undermine the “at will
status”
8– KPA CONFIDENTIAL –
9. Hiring
• Background Checking &Fair Credit Reporting Act
– Notice and Disclosure Form
– Adverse Action Letter
– Copies of all reports
– Keep any drug testing reports separate (with medical
records)
• I-9
– Complete within 3 days after hired
– Retain for 3 years after hired or 1 year after termination
by the Immigration Reform and Control Act
• Confidentiality Agreements
• Employee Handbook Acknowledgements
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10. Employment Relationship
• Notices of commendations or awards
• Written warnings or documentation of oral
warnings
• Performance appraisals
• Attendance and absence records
• Any signed acknowledgement of policies
• Training records
Tip: Keep both positive and negative
information in the file but no medical
records
10– KPA CONFIDENTIAL –
11. Employment Relationships
• Payroll and Compensation Records
– Retain for at least 4 years
– Do not include full Social Security #
– Explanation of gross wage and total hours
worked plus any deductions
• Benefit Records
– Retain for 6 years (ERISA)
– Reasonable notice when cancelling any benefit
program (30-60 days)
11– KPA CONFIDENTIAL –
12. Non Exempt Payroll Records
If an employee is subject to both minimum-wage and overtime pay provisions
,you must keep the following records:
• Employee’s name
• Home address
• Occupation
• Sex
• Birth date (if under 19 years of age)
• Hour and day the person's workweek begins
• Total hours worked each day and week
• Total daily or weekly straight-time earnings
• Regular hourly pay rate for any week when the employee works overtime
• Deductions from or additions to wages
• Total wages paid each pay period
• Date of payment and pay period covered
Tip: Consider having all employee track hours, you will be glad
you have the documentation in the event of a
misclassification
12– KPA CONFIDENTIAL –
13. Employment Relationships
• Medical Records
– Separate File
– ADA accommodations
– Drug testing results
– Physicals
– Workers’ Compensation
– OSHA reports
– FMLA
• Leave Request
• Some states may require payment of accrued leave at termination
• Performance Management
– Promotions, Transfers, Appraisals and Discipline
13– KPA CONFIDENTIAL –
14. Termination
• Reductions in Force
– Document selection criteria
– Adverse impact analysis
– WARN notice (60 days notice when impact is
100 employees or greater- state exceptions)
• Terminations
– Releases
– 21 days to consider and 7 days to revoke
– COBRA
14– KPA CONFIDENTIAL –
15. Electronic Recordkeeping Pros and Cons
• Improved Management – All HR related information is available
online, providing managers more information upon which to base their
employee management decisions
• Increased HR Manager Productivity –Reduce inquiries to HR from both
employees and managers, freeing HR managers for other tasks
• Lower Administrative Costs – Document transportation and physical
storage costs are eliminated. Administrative time is no longer spent looking
for lost or misfiled documents
• Improved Control and Compliance – With the system’s workflow enforcing
accountability and all actions automatically recorded in an audit
trail, compliance with corporate standards and legal regulations is improved
• Security – Quality systems ensure storage complies with regulations such
as HIPAA, EEOC and the Personal Data Privacy and Security Act but
imperative that both the data and the physical systems are secure.
• Smoother Audits – With all HR related documentation available online
internal and external audits are completed in less time with fewer people
affected but all electronic information can be subpoenaed and usually
retrieved
• Less Risk – With important documents online, the risk of lost or damaged
documents is eliminated.
15– KPA CONFIDENTIAL –
16. Common Mistakes
• Failing to keep complete records
• Keeping complete records but including
inaccurate information or “smoking guns”
• Poor storage practices
• Not limiting physical access
• Keeping medical information in the same
files
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17. Best Practices
• Establish policies for retention and access
• Maintain separate files for medical records
• Review physical access controls and data access
on an bi- annual basis
• Keep all paper files in a secure area
(locked, limited access)
• Shred all document prior to disposal
• Only use electronic systems that have
documented physical and data access security
standards
17– KPA CONFIDENTIAL –
18. Handy Tools
• The DOL has a new online tool to help employers
determine which record-keeping requirements apply
to them www.dol.gov/elaws/firststep
• Federal law requires all businesses to post minimum-
wage notices in their workplace, as well as posters
about the Equal Employment Opportunity Act, Family
and Medical Leave Act, Employee Polygraph
Protection Act and OSHA. To obtain free copies of the
posters, contact the DOL at (866) 487-9243 or go to
www.dol.gov/whd/regs/compliance/posters/flsa.htm
http://www.gneil.com/products
/coverconfidentialemployee
recordfolderstnd/default.as
px?sessionid=639.653h1e-
312
18– KPA CONFIDENTIAL –
20. Contact Information
20– KPA CONFIDENTIAL –
The recorded webinar and presentation slides will be emailed to
you today including your local representative’s contact information.
www.kpaonline.com
kcarlson@kpaonline.com
866-228-6587
