What to Keep in a Personnel File

You should begin a personnel file for each of your employees on the date of hire. All important job-related documents should go in the file, including:

• job description for the position
• job application and/or resume
• offer of employment
• IRS Form W-4 (the Employee's Withholding Allowance Certificate)
• receipt or signed acknowledgment of employee handbook
• performance evaluations
• forms relating to employee benefits
• forms providing next of kin and emergency contacts
• complaints from customers and/or coworkers
• awards or citations for excellent performance
• records of attendance or completion of training programs
• warnings and/or other disciplinary actions
• notes on attendance or tardiness
• any contract, written agreement, receipt, or acknowledgment between the employee and the employer (such as a noncompete agreement, an employment contract, or an agreement relating to a company-provided car), and
• documents relating to the worker's departure from the company (such as reasons why the worker left or was fired, unemployment documents, insurance continuation forms, and so on).

What Not to Keep in a Personnel File

Do not put medical records into a personnel file. If your worker has a disability, you are legally required to keep all of the worker's medical records in a separate file -- and limit access to only a few people. Even for workers who are not disabled, you may have a legal obligation to keep medical records private (and it's a good idea to do so, in any case).