Personnel Files: What Employee Documents Should be Included (Plus Free Checklists)
Charlette has over 10 years of experience in accounting and finance and 2 years of partnering with HR leaders on freelance projects. She uses this extensive experience to answer your questions about payroll.
Jennifer Hartman is an HR Specialist and staff writer for Fit Small Business, with over 15 years of experience in accounting, payroll, and human resources.
This article is part of a larger series on How to Do Payroll.
A personnel file is a paper or electronic folder that contains HR and payroll documents related to new, existing, or past employees. The documents within an employee personnel file should cover the entire employment lifecycle, from offer letters and W-4 forms to performance reviews and termination paperwork. It should also include basic employee documents and compensation information in compliance with federal and state labor laws.
Download our free checklists to help you understand what employment records to store; they can be edited to add documents specific to your company. Then, continue reading for more specific information on what to include and not include in a secure personnel file.
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Quick Tip:
Updating, uploading, and filing employee records can be an overwhelming job for a small business. By using HR software like Zenefits, you can let your employees electronically sign documents and store them online in a secure document vault for easy access.
Zenefits also offers a compliance assistant making it easy to keep your employee documents in line with federal, state, and local labor laws.
Thank you for downloading!
Quick Tip:
Updating, uploading, and filing employee records can be an overwhelming job for a small business. By using HR software like Zenefits, you can let your employees electronically sign documents and store them online in a secure document vault for easy access.
Zenefits also offers a compliance assistant making it easy to keep your employee documents in line with federal, state, and local labor laws.
For help setting up a hiring process, follow our guide to hiring new employees.
What to Keep in a Personnel File
An employee personnel file includes legal documents, company documents, and employee documents.
To safeguard personnel files and other employee documents, companies can use an employee management platform like Rippling. With it, all people operations are done in one place—from onboarding to offboarding, including document management. You can manage and automate employee data and operations easily to ensure compliance.
What Not to Keep in Personnel Files
There are also documents that you should not include in the employee’s personnel folder, primarily because of confidentiality. These include the following:
- Pre-employment records, except for the application
- Monthly attendance records
- Anything related to worker eligibility, such as I-9 forms, copies of driver’s licenses, and Social Security cards. Consider putting these forms and related documents that verify an employee’s right to work in the US into a separate folder.
- Equal Employment Opportunity (EEO) records. We suggest that you keep this documentation separate from the employee’s personnel folder; managers should not have access to view this data for the risk of discriminating against an employee in a protected class.
- Private documents—protected by the Health Insurance Portability and Accountability Act (HIPAA), also referred to as health information privacy.
- Any other medical information; if you have staff who have given you doctor’s notes or other documentation such as for medical leave, for example, keep these documents separate.
- Private employee data—such as bank account details, Social Security numbers, or immigration documents—are best stored separately from the personnel folder.
How to Set Up Employee Personnel Files
Business owners don’t always realize the importance of setting up personnel files until they’re audited or served with a lawsuit. If you are operating in hindsight and nervous about getting everything set up for employees that already exist, don’t stress. Use the two checklists we’ve provided above, along with the steps for you to get your employee file folders set up and in order.
You should complete the following for organizing and storing personnel records to ensure compliance and security:
Step 1: Take Inventory
First, you need to take an inventory of what you already have for each employee. Be sure to take into account the documents that you already have and what you need from each employee. Use an employee personnel file checklist to make sure everything is in order. Each person might require their own list.
Thank you for downloading!
Quick Tip:
Updating, uploading, and filing employee records can be an overwhelming job for a small business. By using HR software like Zenefits, you can let your employees electronically sign documents and store them online in a secure document vault for easy access.
Zenefits also offers a compliance assistant making it easy to keep your employee documents in line with federal, state, and local labor laws.
It would also be best if you audit files periodically to make sure every piece of information is up-to-date and accurate. Use a personnel file audit checklist to help keep track of what you’ve received. Ideally, you should create a personnel file for each employee on the date of hire. However, if you forget to do so, you can find documents—like employee resumes, performance reviews, and tax forms—in your email or online storage. Make sure you also have I-9s for each employee as well, but they should be kept in a separate file.
Thank you for downloading!
Quick Tip:
Updating, uploading, and filing employee records can be an overwhelming job for a small business. By using HR software like Zenefits, you can let your employees electronically sign documents and store them online in a secure document vault for easy access.
Zenefits also offers a compliance assistant making it easy to keep your employee documents in line with federal, state, and local labor laws.
Step 2: Request Items You Need to Complete Each Personnel File
If there are documents on your list that you cannot find in your files, you can request these documents from your employees. Give each employee their individual checklist to show what they need to submit to update their personnel file. Set a due date for all employee documents to be in and complete. Be sure to review each employee’s list with them present so that if anything was not submitted, you can address it right away.
Follow up with each employee you requested additional documents from before the deadline so that everyone has time to submit the missing documents. Then, store your documents online, on your computer network, or in a locked file cabinet.
Step 3: Store Documents
You will want to store your personnel documents in a file folder marked specifically for each employee by name. We recommend that you keep employee personnel files in a locked cabinet to safeguard confidential employee information from unauthorized personnel. Access to employee files should be limited to an authorized individual or department whose permission is needed to view the files, such as HR.
Documents can also be stored online with an encrypted service. Rippling provides secure online document storage, including copies of employee contracts, policies, and a copy of your employee handbook.
With Rippling you can store employee personnel files directly in the system under each individual employee.
Step 4: Establish a Regular Personnel File Audit
Schedule a periodic review of each employee’s personnel file. This can be done when you conduct their annual evaluation. Ensure that the files are accurate, up-to-date, and complete. If not, you can ask the employee to provide you with the updated files or information. Your business should verify that files are in order prior to any audits such as payroll or labor.
Please note, personnel files can be viewed during a government audit or subpoenaed in the event of a wrongful termination lawsuit. Maintaining accurate, up-to-date files will help you avoid liability.
Follow our onboarding guide to learn how some of the personnel file documents will be used upon hire.
Federal & State Laws About Personnel Files
Being compliant with federal and state law is an important aspect of being an employer because you’re required to maintain employee data and personnel files. Here are the best practices, as well as what is required, at the federal and state levels.
State laws on personnel files revolve around whether or not an employee has a right to look at their personnel file. Many states have a provision that allows employees to request copies of documents in their files. In other states, employees may have to file a lawsuit to see their personnel file.
Right to View States
The following states allow employees to see some or all of the documents in their personnel folder; many states are quite specific about what exactly employees are allowed to view. Others allow the employer to charge reasonable fees for document copies. For example, in Arizona, payroll records can only be viewed.
Please see your state’s Department of Labor (DOL) website for more specific details.
Current “right to view personnel file” states include Alaska, Arizona, California, Colorado, Connecticut, Delaware, Florida, Illinois, Iowa, Louisiana, Maine, Massachusetts, Michigan, Minnesota, Nevada, New Hampshire, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Washington, and Wisconsin.
Bottom Line
Maintaining personnel files is an important part of being an employer and protecting yourself from liability. It’s a great way to organize employee data and provides support for human resource decisions. You can choose to manage the employee personnel files electronically or use a paper-based system; either way, it’s important to include basic employee reports and adhere to the appropriate federal and state laws.
