From time to time, clients ask what information they should be retaining about their employees. While the answer is not always straightforward, in Massachusetts there are legal guidelines governing the collection of employee information.
According to Massachusetts law, “employers with twenty or more employees must create and maintain employee personnel records.” By definition “a personnel record is a record kept by an employer that identifies an employee, to the extent that the record is used or has been used, or may affect or be used relative to that employee’s qualifications for employment, promotion, transfer, additional compensation or disciplinary action. These records can be in a typewritten or printed form or may be written in indelible ink.” Personnel records may also be maintained electronically as long as access to these records is readily available to both the employer and the employee.
While this may seem like a lot to digest, I suggest to clients that they break it down to 2 manageable parts:
- Employee File Checklist
- Four Part Employee Classification Binder
Employee File Checklist
- Full Name
- Address
- Date of birth
- Contact for employee in case of emergency (advisable)
- Job title and description
- Employment application
- Resume or other forms of employment inquiry submitted to the employer by the employee in response to his advertisement
- Starting date of employment
- Rate of pay and any other compensation paid to the employee
- Waivers signed by the employee (Employee Handbook Acknowledgement Form as example)
- All employee performance evaluations, including self-evaluations
- Written warnings or any other documents relating to disciplinary action regarding the employee
- List of probationary periods
- Copies of dated termination notices
As appropriate also include:
- All employee performance evaluations, including self-evaluations
- Written warnings or any other documents relating to disciplinary action regarding the employee
- List of probationary periods
- Copies of dated termination notices
4-Part Classification Binder
Inside front cover: Basic employee information including name, address and date of birth. This can be captured on a single form created and used to maintain name, address changes, emergency contacts, and initial and subsequent job title/status/pay information; offer letter (if used)
Second section: Application; resume (if submitted); job description
Third section: Waivers signed by the employee
Fourth section (inside back cover): Performance appraisals, warnings, etc.
Recordkeeping mistakes you should avoid
Finally, one of the biggest issues I see when assessing employee personnel files is that employers keep their I-9 forms, medical information, and safety records in the personnel/payroll records. This is not advisable for a variety of reasons and we regularly advise clients to ensure that this information is not included in the employee personnel files.
Learn more with Best Practices for Employee Recordkeeping Part 2