personnel files

kayatighe · February 2003

our company recently went from d.b.a. to four separate entities. The four entities (restaurants) are still owned by one parent company. Sometimes an employee from one entity will also work for another. Are both entities required to have a personnel file and I-9 for that employee? Does the paperwork need to be the original, or can it be a copy of the paperwork from the other entity (ie. applications, resumes, w-4, etc)
Thanks!

MS HR · February 2003

i would think separate files for each entity (copies could suffice), just simply because if there's a worker's comp issue or lawsuit of some type, the individual entity would be sued and the documents in possession of that entity might be necessary to produce in court. just my thoughts.

POPEYE · February 2003

The files should only be kept with the entity that is performing payroll functions. If each entity has it's own tax ID, then yes each should have a full personnel file. However, if the tax ID is the same for each entity, then the "primary" entity for the employee should be the only one with a file. Having dealt with multiple locations for several years, I have experienced that multiple files can cause multiple problems should any type of investigation occur. The smallest discrepancy from one file to the other can be very expensive!

kwelzel · February 2003

Is there one owner over all the properties? I have 6 properties that are listed as separate companies, but all are part of the corporation. Our atty, states that employees are under that big, corporate umbrella and (the question I had) was: do we pay overtime if the hours worked are over 40 but split between two properties. Our atty. said we do. I have personnel files at every location that they work, in case you ever have a visit to audit files, you want to make sure it's all there. I think copies are o.k., but I would like to hear the "experts" opinion also.

System · February 2003

The answer really depends on what your intentions are. If you have any thoughts of trying to assert that the entities are distinct, then you need to do everything possible to act as four separate companies, with separate payroll, personnel files, policies, health plans, etc. If, as I suspect from your question, you have set up four companies (based on non-employment law considerations), but you are acknowledging that they should be treated as a single employer for employment law purposes (e.g., you pay overtime to a person who works 20 hours for A and 25 hours for

, then I see little exposure in keeping all personnel records in a single, central location.

personnel files

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