Maintaining accurate and secure employee records is a crucial responsibility for employers, but the question of how long to keep former employee personnel files can be tricky. Employers need to strike a balance between regulatory compliance, company policy and operational needs. The amount of employee turnover can also impact the decision. Here’s a quick guide to help employers navigate this retention period.

Follow Federal and State Laws
Different regulations govern the retention of personnel records. For example, some of the federal and Florida law requirements are:

• The Equal Employment Opportunity Commission (EEOC) requires employers to retain personnel records for at least one year after an employee’s termination. There is also a one (1) year requirement for records associated with providing reasonable accommodations to a disabled employee.
• Under the Age Discrimination in Employment Act (ADEA), documents related to wage and hours must be kept for three years, while personnel records tied to discrimination claims must be kept for one year.
• The Occupational Safety and Health Administration (OSHA) requires employers to maintain records of workplace injuries and illnesses for five years.
• Payroll records, time cards, amounts and pay dates (and pay period covered), pay rates, work week description, fringe benefits, overtime, job classifications must be kept for three (3) years.
• I9 forms and supporting documentation must be kept for three (3) years after date of hire or one year after date of termination, whichever is later.
• Drug tests for DOT positions must be maintained for one year from the test date and up to 5 years for the records related to DOT testing and regulatory compliance.
• Under Florida law, unemployment insurance related documents must be maintained for five years, workers’ compensation policy compliance records for the current year, plus at least the two preceding years (and documents associated with claims for the length the claim is open, and capable of being re-opened).

Consider the Statute of Limitations
Employers should retain files long enough to cover potential legal claims, based on the specific law. For example, the statute of limitations for many discrimination or contract claims may range from two to five years, depending on the jurisdiction. Retaining personnel files beyond this period can protect employers from legal risks.

Preserve Records for Benefits or Pension Claims
Records related to employee benefits, such as retirement plans and group health benefits, may need to be retained much longer—sometimes indefinitely—to support former employees’ claims or compliance with laws like ERISA (Employee Retirement Income Security Act). Check with your third-party administrators, vendors or benefits advisor for more details.

Establish a Company Policy for Employee File Destruction
Once the required retention period has passed, employers should securely destroy personnel files to protect sensitive information. Shredding paper records and permanently deleting electronic files ensures confidentiality. Having a well-documented destruction policy helps maintain compliance and reduces the risk of unauthorized data breaches.

Conclusion: Carefully adhering to the various legal guidelines, employers can protect their company while respecting former employees’ privacy. Often, employers will use a 5 to 7-year rule for destroying terminated employee files, as this typically covers state and federal statutes of limitations; although shorter retention periods may suffice for some records such as I-9 forms. If you are unsure about specific retention requirements, consult with legal counsel or a knowledgeable HR professional.