Employee Files...

JDauer · April 2008

Since coming on board with my company I have been "cleaning house". I started rewriting policy, giving employment law training to supervisors, and changing best practices.... BUT I am running into a wall when I get to employee files.

Now I would have all the following in seperate folders and seperate drawers or cabinets:

Employee File (Standard)
Confindential File
Spirit Performance System (Quarterly review/evaluation system)
I-9
Regulatory File (for those with state licenses etc)

The company currently has the files like this:

ONE Binder with sections for-
Employment info
Confidential
Regulatory

and a seperate I-9 binder.

Arizona doesnt seem to have laws for ANYthing... is there anything out there that can help me prove my point and get them to change our files???? Or am I being too picky???

Help!

Tony Kessler · April 2008

JDauer,
If you already have a clear idea about how you want your personnel files set up, what I'm about to tell you may not be all that much help. Your challenge may be within the organization -- how to get everyone to change their habits and follow a new way of managing the files. But I'm gonna go ahead and mention several upcoming events we're sponsoring on the chance that one of them may help.

First, in early summer (June 26, 2008), employment law attorneys Dinita James and Stephen Coleman with Ford and Harrison in Phoenix (the law firm that edits Arizona Employment Law Letter) will conduct a daylong Master Class there on Employment Records. While the promotions haven't promised to provide strategies on making internal changes to your system, I'm sure there will be time during the day to get that kind of a question answered. Here is a link to more info on the Phoenix event: [url]www.hrhero.com/seminars/record/az/?[/url]

Similar state-specific events are scheduled for:
-- Alabama (Birmingham, May 14, and Mobile, May 15)
-- Colorado (Denver, June 13)
-- Georgia (Atlanta, May 6)
-- Illinois (Chicago, June 26)
-- Massachusetts, (Boston, June 24)
-- Washington (Seattle, May 8).
For more information: [url]www.hrhero.com/seminars/record/[/url]

Second, if you don't want to leave your office, we'll be holding a traditionally popular and helpful 90-minute national audio event titled "What to Save, What to Shred: Comply with Personnel Record Retention Laws" on Thursday, June 12. The landing page isn't ready yet, but you should be able to sign up for it soon. The speakers will be employment law attorneys Mark Adams and Jennifer Anderson with the Jones Walker law firm in New Orleans and Baton Rouge, respectively. They are the editors of Louisiana Employment Law Letter.

Third, if you need information now and not later, the CD for a similar event is available for purchase at [url]www.hrhero.com/audio/record_retention3/?[/url] The event was taped on February 28, featuring employment law attorneys Jeanne Bender and Jason Ritchie with Holland & Hart LLP in Billings. Yes, they are the editors of Montana Employment Law Letter. The 90-minute tape is full of practical legal information on the subject of managing personnel files. Hope this helps. tk

NeedCoffee · April 2008

Well, while I wouldn't outright say that you're being too picky, if you feel that strongly about it you should voice your concerns to management and suggest they change the files. Give them the reasoning behind your choices, and let them decide. Otherwise, you are going up against years of company practices which may affect many people.

In the absence of state laws regulating EE files, you have no hard facts to support the change, other than what you feel are best practices. I assume that your files are already HIPAA compliant - no medical docs in the files. Give management specific scenarios and show how each filing system would result in different outcomes. If they say yes, great, if they say no, at least you did a nice CYA (keep your suggestion memo!).

How big is your company, and how many people are affected by the HR files? You stated that your files are currently in 1 binder. That leads me to think you are not dealing with a large number of employees - why not just make the change yourself? If you're the only one that has to deal with EE files, this would be a quick fix if you're the only one it really impacts...

Good luck!

JDauer · April 2008

Thanks for the notes!

Compliance is my fear and yes my reasons for wanting a change is for best practices.

Each employe has a binder (@200 EE's) and the files are at the work sites and I am at corporate. But they have EVERYTHING in one binder and my arguement to them is that a divider in a binder can't be cosidered "kept seperate" for confidential/medical files.

Pattie · April 2008

I agree with your argument that everything in a binder with a simple divider is not keeping anything separate, especially if they're keeping medical information in the binders as well. My understanding of HIPAA is that medical information is only to be seen by those who are determined to be "health information officers" at the company. At our company, there are 3 of us in HR and we are the ONLY ones allowed to see anything pertaining to medical -- dr's notes, FMLA paperwork, etc. -- we will relay pertinent information only to the employee's supervisor -- if they're out, for how long and expected return to work date and if there are any restrictions.

If something is pertinent to the employee's job -- pay increases, licensing, training, etc., it's been our practice to keep that information in their personnel file. Anything else goes into their confidential file, and I9's are kept in a separate binder.

The problem with keeping everything in one file: if a supervisor wants to review an employee's file -- they will have access to everything and could potentially create problems.

The other thing to point out to your superiors is that if for any reason the company is audited - by DOL, wage and hour, etc. -- the agency will have access to everything in the files. I would also think that if you receive a request from an outside party -- attorney, whatever, for a copy of the employee's personnel file -- you'd have to supply everything.

One other thought -- how many locations do you have and is there an HR rep at each location? I would also hope that those binders are kept under lock and key.

ACU Frank · April 2008

"Separation" of the items is also a huge benefit administratively. If a supervisor asks to see the "Spirit" section, for example, someone has to physically remove (or should be removing) that section from the binder before the supervisor gets it, since handing the binder over to the supervisor intact is likely a HIPAA violation. This is just one example of how setting the files up correctly to begin with is probably a huge timesaver.

Also, it is a huge benefit legally. If you are subpeonaed - depending on how the subpeona reads - you may have to hand over the "primary" file intact. As your system currently stands, that would be the whole binder! Separation provides much greater control over what materials can end up being used against you in court or with the EEOC.

Rockie · April 2008

I think you have to examine the organization and then come up with a best practice for that particular company. Many times, the way HR files are kept are a personal preference. As long as you are HIPAA compliant (no medical information in personnel files) and keep the I-9s separate. A binder is NOT a separate file, so if medical information is kept this way, it is not HIPAA compliant.

I have one personnel file per employee with separate sections in it. One section has all the new employee paperwork, one section has all the performance evaluation/salary increases, one section has the job descriptions one section has any disciplinary issues and one section has miscellaneous information.

There is a separate file for medical information and a separate file for benefit information.

This may not work for all companies, but this way works for our particular organization.

Employee Files...

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