How long to keep employee files after termination

Keeping accurate and organized employee records is a critical part of HR, not only as a basic business function but also as an important legal protection.

HR compliance mistakes can cost a business thousands of dollars. For example, I-9 mistakes can cost employers upwards of $2,500 per instance, with one business recently being fined over $1.5 million dollars.

In addition to being risky to your business’s bottom line, incomplete data and discordant systems can create HR headaches.

Employee records, or personnel files, are important documents that track your employees’ relationship with your company over time and document important employment interactions and decisions. Plus, the information you collect will depend on your business’s needs and the many state and federal legal requirements.

What’s the best way to maintain employee records, especially as employee hires and exits create a constant flow of data to manage?

And how long does your business need to keep records to stay compliant with legal regulations?

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how long should staff files be kept

how long should personnel files be retained