Importance of Proper Personnel Files
There are three reasons why a practice should keep proper personnel files.
- The first is simply that it makes good business sense to have accurate information handy and organized when you want to use it.
- The second reason is that most managers will eventually encounter the need to produce documentation about employee performance and work history.
- And, the third reason is that some employee records are required by federal or state governments and must be kept somewhere. Organizing them by employee name makes access easy.
There are some important cautions to be given about the subject of identifiable employee information. Generally, state laws permit employees the right to examine their personal employment records. This simply allows individuals the opportunity to confirm information in the file and identify any specific information which is believed to be incorrect. Employees are not, however, universally guaranteed the right to copies of all file contents. As the employer, you usually have the right to control the time and location of these examinations as long as you are reasonable in doing so. The objective, of course, is to ensure accuracy of information about each person. In most states, ownership of the personnel file and its contents rests with the employer who maintains it.
Access to information about employees should be strictly limited to those people in your practice with a need to use the information in their jobs. Many states are aggressive protectors of employee privacy and random or unauthorized access to personnel files can bring on severe penalties. Make sure that you store personnel files in a secure location and that they are not left unattended even during the business day. When asked by people outside the company to provide "verification" of certain employment information about your employees, make it a practice to confirm only the information your employees have authorized you to release. Employment verifications are usually required to support such things as mortgage applications, credit applications and the like. Employee authorization should be in writing and specify the information they wish you to reveal. Tell your employee the policy is designed for his/her protection.
Job applicants may not have decisions about their applications made based on protected categories such as race, color, sex, religion, national origin, and age. Therefore having any information on the application which identifies these categories is inappropriate and may be considered illegal.
Another example of information required of employees stems from the I-9 form. Completion of this document is mandated for every employee hired after November 6, 1986. As the implementation tool for the Immigration Reform and Control Act of 1986, employers are required to log document numbers which prove the employee's identify and right to work in this country. Normally a Social Security Card and driver's license meet these requirements. We suggest you keep I-9 forms in a file separate and apart from your personnel files. The reason is simple. Many government agencies are authorized to inspect your I-9 forms if they visit your work location. If you have them in your personnel files, the government gets to go through your personnel files. Anything they find there can raise additional questions or issues. In a separate I-9 file, you have the ability to hand the inspecting agent one file folder with all your I-9 forms.
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