What
Maintain employment-related documents for legally required minimum timeframes, then securely destroy them.
Who
Virtually all employers; federal, state, and local requirements apply depending on size, industry, and plan type.
When
Retention periods start from different trigger dates depending on the record type: some from the date of hire, some from the date of termination, some from the date the record was created.
Risk
Fines and civil penalties under applicable laws, inability to defend against employment claims or agency audits, and potential adverse inference if records that should exist are missing.
See the full retention schedule in Templates & Resources below.
| Record Type | Retention Period | Law / Source |
|---|---|---|
| Payroll records | 3 years | FLSA |
| Wage calculation records (timecards, schedules) | 2 years | FLSA |
| Benefit plan documents & reports | 6 years | ERISA |
| FMLA leave records | 3 years | FMLA |
| OSHA injury & illness records | 5 years | OSHA |
| I-9 forms | 3 years after hire or 1 year after termination, whichever is later | USCIS |
| Tax records (W-2, W-4, 1099) | 4 years from due date of return | IRS |
| Job applications (not hired) | 1 year (2 years for federal contractors) | EEOC / ADEA |
| Personnel file (applications, reviews, discipline, termination docs) | 3 years post-termination (varies by state, some require longer) | Title VII / ADEA / state law |
| Medical records (OSHA-covered hazardous exposure) | Duration of employment + 30 years | OSHA |
- Master retention schedule: A single document mapping each record type to its governing law and minimum retention period. See the full schedule in Templates & Resources below.
- Personnel files: Applications, offer letters, performance reviews, disciplinary records, termination documentation.
- Payroll and timekeeping records: Wage rates, hours worked, overtime, timecards, and schedules.
- Tax filings and supporting documents: W-4s, W-2s, 1099s, and employment tax returns.
- Benefits documentation: Plan documents, summary plan descriptions, enrollment forms, and ERISA-required reports.
- Safety and health records: OSHA 300 logs, incident reports, and any exposure records for regulated substances.
- I-9 forms: Kept separately from personnel files; see Delivery Rules below.
1
Build a retention scheduleMap every record type your organization creates to its governing law and minimum retention period. Use the schedule in Templates & Resources as a starting point and add state-specific requirements for your state(s).
2
Organize records by categoryHR/personnel, payroll, tax, safety, benefits: keep categories in separate files or folders. Medical records and I-9s must be stored separately from the main personnel file.
3
Set up secure storageBoth digital and physical storage must have access controls. Restrict sensitive records (medical, I-9) to authorized personnel only.
4
Calendar destruction datesWhen a record is created or an employee separates, calculate the destruction date and add it to a tracking log.
5
Audit annuallyReview the tracking log, purge records that have hit their destruction date, and confirm the retention schedule itself is still current.
6
Document destructionShred paper records; use secure deletion tools for digital files. Log what was destroyed, when, and by whom.
- Medical records must be kept separately: Under the ADA and HIPAA, employee medical information (including disability accommodation requests, fitness-for-duty exams, and health-related leave documentation) must be stored in a file separate from the main personnel file, accessible only to authorized personnel.
- I-9 forms must be kept separately: I-9s should be stored apart from personnel files to limit exposure during ICE audits; only the I-9 binder is produced, not the entire personnel file.
- Electronic storage is generally acceptable: Digital records must be indexed, searchable, and reproducible in legible hard copy if an agency requests them. OSHA and ERISA each have specific requirements for electronic recordkeeping systems.
- Access controls are required: Restrict access to personnel and benefit records to those with a legitimate need. Log who accesses sensitive records and when.
- Destruction must be secure: Shredding for paper; certified deletion or physical destruction for drives and storage media. Random deletion is not compliant.
- Retention policyWritten retention policy and schedule, signed off by leadership.
- Tracking logEach record series, its retention period, and its scheduled destruction date.
- Destruction logWhat was destroyed, the date, the method, and the person responsible.
- Audit recordsAnnual audit records confirming the schedule was reviewed and the log was purged.
- Training documentationDocumentation of staff training on retention procedures.
Common traps
Keeping everything forever: It feels safe, but indefinite retention creates legal risk. Records kept past their retention period can be discoverable in litigation and may contain information you'd rather not produce. Purge on schedule.
Applying one timeline to all records: Payroll records (3 years), timecards (2 years), ERISA plan docs (6 years): applying the longest period to everything is overcompliant and creates unnecessary retention of records that should be gone.
Forgetting state requirements: Many states require longer retention periods than federal law. California, New York, and Illinois, for example, have state wage and hour recordkeeping requirements that extend beyond FLSA minimums.
Storing medical records in the personnel file: This is one of the most common ADA violations found in HR audits. Medical information must be in a separate, restricted file.
FAQs
Do retention clocks start at termination or at the time the record was created?
It depends on the law. FLSA payroll records run from the date of the last entry. I-9 retention is calculated from the hire date or termination date. ERISA plan document retention runs from the date the document was filed or used. Use the retention schedule to track each record type's specific trigger date.
What happens if records are missing during an audit or lawsuit?
Missing records that should have been kept can result in fines and penalties under the governing law, and courts may draw an adverse inference, assuming the missing records would have been unfavorable to the employer. In wage and hour cases, this can shift the burden of proof to the employer to disprove the employee's claimed hours.
Are electronic records acceptable?
Generally yes, provided they are accurate, indexed, retrievable, and can be reproduced as legible hard copies on request. ERISA and OSHA both have specific requirements for electronic recordkeeping systems; verify your system meets them.
- DOL: FLSA Recordkeeping Fact Sheet #21: payroll and timekeeping requirements under the Fair Labor Standards Act.
- OSHA: Recordkeeping Overview: injury/illness logs, exposure records, and electronic submission requirements.
- DOL: ERISA Overview: benefit plan document and reporting retention requirements.
- DOL: FMLA Overview: leave record retention requirements (3 years).
- USCIS: I-9 Central: I-9 retention rules, storage requirements, and audit guidance.
- EEOC: Recordkeeping Requirements: personnel file and applicant record retention under Title VII, ADEA, and ADA.
- California: Wage and hour records must be kept for 3 years (matching FLSA), but personnel files must be retained for the duration of employment plus 3 years. Employers must also allow current and former employees to inspect their files within specific timeframes.
- New York: Payroll records must be kept for 6 years under the New York Labor Law, twice the FLSA minimum.
- Illinois: Wage and employment records must be kept for 3 years, and employees have a right to inspect their personnel files.
- Federal contractors: Contractors subject to OFCCP are required to retain applicant and employment records for 2 years (up from 1 year for non-contractors) and have additional affirmative action recordkeeping obligations.
A ready-to-use retention schedule covering the major federal requirements. Add a column for your state's rules and any industry-specific requirements, then use this as your master reference.
Federal Record Retention Schedule
All periods are minimums. Your state may require longer. When in doubt, retain for the longer period.
| Record Type | Retention Period | Clock Starts | Law | Storage Note |
|---|---|---|---|---|
| Payroll records | 3 years | Date of last entry | FLSA | Payroll system |
| Timecards, schedules, wage basis records | 2 years | Date of last entry | FLSA | Payroll / timekeeping system |
| Tax records (W-2, W-4, 1099, employment tax returns) | 4 years | Due date of the return | IRS | Payroll / accounting |
| I-9 forms | 3 years from hire OR 1 year from termination (whichever is later) | Date of hire / date of termination | USCIS | Separate from personnel file |
| Personnel file (applications, offer letters, reviews, discipline, termination) | 3 years post-termination (check state law) | Date of termination | Title VII / ADEA | HR file |
| Job applications / resumes (candidates not hired) | 1 year (2 years for federal contractors) | Date of application | EEOC / ADEA | Recruiting system |
| FMLA leave records | 3 years | Date of leave record | FMLA | HR file (medical docs separate) |
| ERISA benefit plan documents, SPDs, reports, claims records | 6 years | Date filed or used | ERISA | Benefits / plan admin |
| OSHA injury & illness logs (300, 300A, 301) | 5 years | End of calendar year covered | OSHA | Safety department |
| Medical records (OSHA hazardous substance exposure) | Duration of employment + 30 years | Date of exposure / employment end | OSHA | Separate from personnel file; restricted access |
| ADA reasonable accommodation records | Duration of employment + 3 years | Date of termination | ADA | Separate from personnel file; restricted access |
Note: State laws may require longer retention periods. New York requires 6 years for wage records; California requires employee access to personnel files; Illinois requires 3-year retention with employee inspection rights. Check your state's labor department for current requirements.