Best Practices: The 10 Do's and Don'ts of Background Screening To that end, items frequently found in such files include: Acknowledgment of receipt of the employee handbook (When the company revises its handbook, provide a new version to all employees and have them sign a new confirmation of receipt and understanding. To Get the Whole Storyon InfoMart, please visit www.InfoMart-USA.com, follow @InfoMartUSA, or call (770) 984-2727. Employers in states that have laws regarding employee access to files should make sure that this filing system complies with the requirements of those laws. Please enable scripts and reload this page. Is it related to the employees performance, knowledge, skills, abilities, or behavior? DO NOT mix together into a shared file the payroll file documents for more than one employee. PDF Federal Record Retention Requirements - Society for Human Resource Additionally, the practice of some supervisors or managers to keep copies of records that exist in the official employee personnel file in their management file is not recommended. Please note that the information provided, while authoritative, is not guaranteed for accuracy and legality. $("span.current-site").html("SHRM China "); Employee record keeping is very important because it helps companies keep track of data and metrics related to employees. Personnel records must be thoughtfully assigned to their appropriate file locations. Workers compensation history, claims and related documents. Some questions need to address the issue that is often uncomfortable for both employer and job candidate to discuss: money. But in other statesMassachusetts, for exampleany piece of paper that you would review in order to make a decision about the employees employment is considered part of the file and the employee must be granted access to it. Equal Employment Opportunity Commission (EEOC) and the U.S. Federal Trade Commission (FTC) recently co-published two guidance documents reiterating how the agencies respective laws apply to background checks performed for employment purposes. PDF Record Storage Best Practices - ADP ; 7-year driving record includes the same types of information reported in the 3-year driving record but goes back 7 . Some documents would be designated red to substantially restrict access to them by employees and supervisors. } Employee Expense Report Pro #2: Avoid Bad Hires. For example, if you dont reject applicants of one ethnicity with certain financial histories or criminal records, you cant reject applicants of other ethnicities because they have the same or similar financial histories or criminal records, the EEOC said. If the terms of the employee's hiring, employment or termination may be disputed, employers would be wise to keep records until resolution . When thinking about what belongs in there, the Society for Human Resource Management suggests the following: Consider whether the document would be relevant to a supervisor who may review this file when making employment decisions. OSHA Forms Personnel File Policy - MSU Human Resources Performance evaluations and goal setting records To be sure youre keeping records long enough, review any state and federal anti-discrimination laws, privacy laws (like HIPAA), and other labor laws. One A few of the most important reasons include: Be sure to create an employee file checklist for every file so that you can keep track of which records are in the file. Please enable scripts and reload this page. If you have that information, dont use it to make an employment decision. Many states also protect job references. This topic is often detailed in the Employee Handbook. With holiday shopping sales starting earlier,Thanksgiving weekend(including Small Business Saturday) now helps start the holiday season rather than the Friday kickoff it once was. Employers have to ask supervisors for their files, and they have to be included.. Employers should therefore think long and hard before refusing access. We would like to show you a description here but the site won't allow us. It's also key for legal compliance. Interview notes and employment test results. Thats why it makes sense for HR professionals to have a firm grasp on the rules for employee access to their files. "Ahiring file includes the documents and actions taken for the hiring of each position. For instance, employers cannot include medical information in an employees general personnel file due to the Americans with Disabilities Act (ADA). *Get the applicants or employees written permission to perform a background check. EEOC, FTC Issue Best-Practice Guidance on Background Checks, New OSHA Guidance Clarifies Return-to-Work Expectations, Trump Suspends New H-1B Visas Through 2020, Faking COVID-19 Illness Can Have Serious Consequences, How to Prepare to Update I-9s Completed Remotely, Business Leaders, Employees Talk Benefits of Second-Chance Hiring. In this case, all hard-copy employee records must be kept in a safe place that can only be accessed using a key. var temp_style = document.createElement('style'); IRS Form W-4 (the Employee's Withholding Allowance Certificate) receipt or signed acknowledgment of employee handbook. A workplace run by AI is not a futuristic concept. Background Checks. Before performing a background check, consider the direct and indirect cost of recruiting, hiring, and training, in addition to wasted wages, benefits, and virtual office resources. There are many reasons why its important to keep complete records in an employees personnel file. She is a member of the Human Resource Association of Central Connecticut. The company is dedicated to customer service, speed, and accuracy, and it has been recognized for its success, workplace culture, and corporate citizenship with over 45 industry awards. What to Keep in a Personnel File job description for the position. *Before you take an adverse employment action (not hiring an applicant or firing an employee), you must give the applicant or employee a notice that includes a copy of the consumer report you relied on to make your decision and a copy of Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRMs permission. } Recognize the difference between a supervisors personal notes about their reporting staff and the official company personnel records. A lot of managers put information in personal files, but that doesnt work in restricting access, Bartley cautions. Another factor in determining what types of files to manage relates the size of the company. } Nearly one-third of an employees compensation can be in the form of benefits. The following information should not be placed in personnel records. Please log in as a SHRM member. But even in those states, there may be separate statutes applying in limited situations. Job status change forms and related information. This broad range of possible legal action combined with a lengthy statute of limitations provides plenty of opportunity for lawyers to find and/or interpret a claim of violation. Learn how SHRM Certification can accelerate your career growth by earning a SHRM-CP or SHRM-SCP. Take care of your people and protect your business, Improve efficiency with digital time tracking and PTO management, Easier full-service payroll for small businesses, We'll design a custom price quote for you, Automatically post to all top job boards in a single click, Showcase your company culture with a custom career page, Save time in the hiring process with self-scheduled interviews, Eliminate bias from the hiring process with interview guides, Store candidate information in digital profiles for a faster, more efficient hiring process, Speed up the hiring process by streamlining candidate communication, Post jobs internally to collect referrals and hire from within, Make your job posts more visible with job board promotion, Track and improve key metrics with automated hiring reports, Send and collect electronic signatures for a seamless onboarding experience, Set employees up for success with customizable new hire packets, Simplify your onboarding with new hire task lists, Welcome new hires with a customizable first-day message, Organize work contacts in a company-wide employee directory, Store important employee information digitally, Visualize your companys structure with an org chart, Keep employee information secure with digital document management. For instance, some companies with less than 50 employees may not be required to maintain a specific type of form, what those with 51 are. Your session has expired. You have successfully saved this page as a bookmark. Send them here we promise well answer them. Its important to keep these records for the employee and for legal compliance. Access to employee files should always be restricted to the furthest extent necessary to comply with the law. var currentUrl = window.location.href.toLowerCase(); What materials are available for viewing? What Should Be Documented in an Employee's Personnel File? forms relating to employee benefits. The Importance of Background Checks | Markel Specialty So think of a personnel filing system as being several types of files. Payroll information belongs in the payroll file. Other Insurance Enrollment Forms (Life Insurance, STD, LTD, etc) 5 Workplace Privacy Rules California Employers Must Follow - SHRM Tammy revolutionized the screening industry when she stepped into the field, developing the first client-facing application and a due diligence criminal search that has since become standard for all background screening companies. Requests for Pay Advances, Documentation of Investigations Check out the website of the individual states Department of Labor for more information. $("span.current-site").html("SHRM MENA "); Emergency Contact Information Checklist - Personnel File - Personnel File | US Legal Forms Thus, employers create a variety of other files to hold things that should not be included in an employees personnel file. You just need to have guidelines.. Investigation materialincluding the employee complaint, witness interviews, employee interview, findings, attorney recommendations, and resolution, plus follow-up to ensure noretaliation, should reside in an investigation file that is separate from personnel records. Therefore, a personnel filing system cant be a one-size-fits-all approach, as there are certain types of information related to employees that are highly personal (medical, for instance) that should be maintained in a system separate from that which is used for personnel decision purposes. Salary and benefit information. How often is inspection allowed? Here is a helpful checklist of what to include. The notice cannot be in an employment application. Keeping detailed payroll files lets you have a complete financial picture of the employee at your company. If you refuse, the employee might decide to go ahead with a legal claim, such as discrimination or wrongful discharge, and that will force your company into another, more expensive arena, Loudon points out. Other states, such as Pennsylvania, allow employers to require that inspections take place only within employees free time. Then there are the red documents. Setting up employee personnel files is an important part of the recordkeeping process. If youre a non-profit entity, public entity, or youre receiving funds from a public, private or non-profit entity, make sure to review applicable laws, regulations, and funding requirements. Below are records you must keepbut not in the personnel fileso that they remain confidential. COBRA or State Continuation paperwork, if applicable, ( | There should be one file per employee. Need assistance with a specific HR issue? Some personnel files are used for helping managers make employee-related decisions. In states where the rules are highly developed and regulated, there may be a number of theories of liability. Depending on how long an end user takes to make a decision, the statute can extend for several weeks or months after completion/delivery of a consumer report. Medical evaluations and related documents. If you see a mistake in your background report, ask the background reporting company to fix it, and to send a copy of the corrected report to the employer. That wide variation leads to two results, Fentin concludes. If an employer routinely runs credit reports, criminal background checks, or other investigations of employees or applicants, these materials should be kept confidential as well. These files include: All employee files should be kept safe and secure. Copy of Drivers License, if required for the position A personnel file is a place to store all the necessary paperwork associated with each staff member's employment with the company. We can help! When employees request to see their personnel files, usually its bad news, according to Timothy Loudon, an employment attorney with Berens & Tate in Omaha, Neb. Here are questions that will get small business job candidates to talk about themselves. var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID"); Medical files should be kept in the red file but also carry special rules of their own. A background check should be comprehensive and cover all the necessary elements to make an informed decision about hiring. Although there are plenty of harmless reasons for such a request, such as the need to get copies of good evaluations to show prospective employers, or to show dates of employment for purposes of applying for a loan, those situations are the exception. Balance the information you place in personnel records. }); if($('.container-footer').length > 1){ | There should be one file per employee. Section 6408(d) requires them to allow access to records of exposure to toxic or harmful agents. (Only any relevant disciplinary action, counseling or other direct communications would be placed in the employees personnel file.) Due to the ADA, medical records should be kept separate from an employee's personnel file in a locked . Requests for Americans with Disabilities Act (ADA) accommodations and related documents. What are the penalties for violating the law? Human Resources Information System (HRIS), Employee Handbook signature page (some organizations have employees sign an acknowledge of receipt and understanding), Pay stubs, including stubs for bonuses and other incentive pay, Any other documents related to an employees performance and behavior, Medical, dental, and other insurance enrollment forms, Benefits claims, doctors notes, and leave requests. While 5 years is the suggested retention period, the chance for a different interpretation of when the retention period began could prolong the statute. Time Sheets What You Should (and Shouldn't) Place in an Employee Personnel File. var temp_style = document.createElement('style'); In Alaska and California, the law applies to both. Information in personnel records must be factual. A Background Check Authorization Form is a form a potential employee fills out to authorize a background check. *Provide notice to the applicant or employee that you might use background information from a consumer reporting agency for decisions about his or her employment. As previously mentioned regarding Form I-9, government entities require employers to keep certain documents for specified periods of time. Past behavior in a specific situation is a better predictor of future behavior than questions about a hypothetical future situation. EEOC, FTC Issue Best-Practice Guidance on Background Checks - SHRM Knowing where to store employee records is essential to proper recordkeeping. What Should Be Documented in an Employee's Personnel File? - Zenefits Employee requests to see personnel records often signal that litigation is ahead. Accommodation Requests. A workplace run by AI is not a futuristic concept. else if(currentUrl.indexOf("/about-shrm/pages/shrm-mena.aspx") > -1) { File employee I-9 forms in an I-9 file or location, away from employee personnel records. Heres what the next wave of small business owners will be keeping top of mind as they turn their business dreams into a reality in 2022. Hiring documentation and interview notes present a bit of a quandary. When employees request to see their personnel files, "usually it's bad. Employment Application S125 Premium Only Plan Forms Note, though, that the contents of this employee file should not be a surprise to the viewer. In California, a person has a right to see personnel records that the employer maintains relating to the employees performance or to any grievance concerning the employee, but not records relating to the investigation of a possible criminal offense, letters of reference, and ratings, reports or records obtained prior to employment or in connection with a promotional exam. Rather, understand that general personnel files serve a distinct purpose. We have some pretty strong tools for protecting employees in California, acknowledges Dan Bartley, a plaintiffs attorney in Novato, Calif. You must keep a completed Form I-9 on file for each employee on your payroll. Such technology is already a part of many workplaces and will continue to shape the labor market. Numerous other employee records exist that employers often file somewhere else. Still have questions? Again, note that all companies will not organize their various types of files in the same way. Think of an employees personnel file as a history of the individuals employment relationship with the company. Most disputes over employees access to their personnel files arise because employers arent aware of the rules, and they think, these are our records, theyre ours to do with as we please, Beachboard says. Recognize, too, the need to train supervisors in how to take notes and maintain documentationin their management file. Thus, employers must be ready to produce accurate, complete I-9 forms that prove identity and legal work status. An ordinary expense is one that is common and accepted in the industry. Employees have the right to see records regardless of whether the file is labeled personnel file, Bartley observes. Adverse action claim: adverse action procedures were followed improperly or not at all. Do: Use a Comprehensive Check. ), Direct Deposit Authorization In addition to the victimization of the employee, harrassment cases can destroy a small business.