What Kinds of Employment Records Does Your Business Have to Keep?
by cjleclaire
 Stephen Hans Blog
Mar 10, 2017 | 39556 views | 0 0 comments | 270 270 recommendations | email to a friend | print | permalink

There is a lot of administration involved with running a business, and sometimes you wonder what records to keep and how long you have to keep them.

The EEOC (Equal Employment Opportunity Commission)clarifies what your record keeping requirements are under federal law as the following:

  • The EEOC requires you to keep all employment records for personnel for one year. If you fire an employee, then you must keep that former employee’s records for one year from the date of termination.
  • The Age Discrimination in Employment Act (ADEA) requires employers to keep all payroll records for three years. Also if you have employee benefit plans such as pensions and insurance plans, and any written seniority or merit system, you must keep records of these plans for the full time the plan is in effect. Or if you fir the employee, for one year after the employee’s termination.
  • The Fair Labor Standards Act (FLSA) requires you to keep records that could be applicable to the Equal Pay Act (EPA) for at least three years. This includes any records that would explain the reason for paying different wages to employees of opposite sexes who work in the same establishment. You should keep for at least two years records that show wage rates, job evaluations, seniority, merit systems and collective bargaining agreements.

employment records


What Records Do You Need if the EEOC Files a Charge on You?

While no one wants to think about having a claim filed against the business with the EEOC, it’s good to be prepared in the event it happens. Let’s say you discover an employee has filed a claim with the EEOC against you. First of all, you’ll receive an EEOC Notice of Charge in the mail that explains your record keeping requirements. You must maintain:

  • Personnel or employment records pertaining to the matter charged and under investigation
  • Matters related to the person bringing the charge or persons allegedly aggrieved according to the charge
  • Records for all other employees holding or seeking similar positions to those people allegedly affected

You must keep these records throughout any EEOC investigation. After the investigation, there is a final disposition period, which means a 90-day statutory period within which the aggrieved person, the party bringing the charge, or the EEOC may file a lawsuit. You must keep records during the disposition period and also throughout the lawsuit and during any appeals being decided.

If you have questions about record keeping or need representation during an EEOC claim, Stephen Hans & Associates can provide you with seasoned legal guidance and litigation.

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