Monday, October 1, 2012

Texas Law Basics for Employers: General Recordkeeping Requirements

What records should Texas employers keep in an employee’s human resources file? And for how long should you keep them?

Each employee should have a separate human resources file which contains, as a general rule of thumb:

  • their job application / resume, 
  • any background checks or test results that are related to their job duties (see our previous blog post on this topic), 
  • a description of their essential job duties and functions, 
  • their I-9 form with copies of accompanying identification documents proving eligibility for employment, 
  • any offer letters or contracts detailing their compensation structure, 
  • signed acknowledgement forms for any company policies and procedures and/or employee handbook, 
  • their W-4 form, 
  • any applications for benefit programs offered to your employee, 
  • records reflecting the hours worked each week by that employee, as well as all paid holidays and all leave or vacation time (paid or unpaid) used by that employee (see separate blog post on FLSA requirements for calculation of overtime pay due to non-exempt employees), 
  • performance evaluations, 
  • disciplinary actions, and 
  • payroll records.

Federal and Texas state laws require that you maintain many of these records for at least two, and sometimes three years.  However, because the statute of limitation for many employment-related claims can be four years from the date of an incident, you may wish to maintain these records for a five-year period.