Recordkeeping and Record Retention

FLSA Requirements Examples below of each type. Refer to your reference material for additional examples. Three years after the last date of entry Time reporting information Three years from the last date in effect Collective bargaining agreements Two years from the last date of entry Basic employment and earning records Records substantiating additions to or deductions from employee’s wages Two years from the last date in effect Work schedules establishing the hours and days of employment

FLSA Requirements Additional requirements for the following employee types: Exempt white collar employees Hospital employees Tipped employees Industrial homeworkers Employees receiving remedial education (remember Section 2?) Employees receiving subminimum wages under a DOL certificate Federal government contractors (Walsh-Healey Public Contracts Act)

FLSA Requirements No requirement on method of retention (e.g. paper, electronic) Documents must be made available within 72 hours of a notice of inspection from the Division Penalties for recordkeeping violations Criminal penalty of up to $10,000 and/or imprisonment for up to 6 months

IRC Requirements Four years after the due date of the tax, or the date the tax is actually paid, for the return period to which the records relate FUTA tax records Four years after the due date of the employee’s personal tax return. Form W-4 Four years after the filing date of a employment claim Three years after the due date of the return or statement relating to allocation of tips Goal is to make the determination of the correct tax liability easy for the IRS

Title VII Requirements Prohibits employers from discriminating against employee on the basis of race, color, religion, sex, or national origin. No general recordkeeping requirements issued by EEOC. Records must be kept for at least one year from the date they were made or the date of the personnel action to which they relate, whichever is later. Title VII recordkeeping requirements also apply to ADA. New EEO-1 report to collect employer pay data for 2017. Due date: March 31, 2018

ADEA Requirements Prohibits employers from making hiring, termination, or other personnel decisions based on the age of the individuals who are at least 40 years of age. Examples below of each type. Refer to your reference material for additional examples. Three year retention Employee records One year retention Applicant records ADEA documents must be kept at the employee’s worksite or central office. Employer has 72 hours to provide records upon request to EEOC.

IRCA Requirements Immigration Reform and Control Act Form I-9 Retention is at least three years after the date of hire or one year after the date of termination, whichever is later No recordkeeping requirements to keep I-9 supporting documents

FMLA Requirements Three year retention period Employers are required to make, keep, and retain records relating to their FMLA obligations in accordance with the recordkeeping requirements under the FLSA Medical records are to be kept confidential and in a separate file from general personnel files

ACA Requirements Three years after the due date of the returns Form 1095-C and Form 1094-C Form 1095-B and Form 1095-C In addition to the information returns Keep forms’ instructions Supporting documents

State Requirements Each state sets it’s own recordkeeping and record retention requirements State unemployment insurance laws State wage-hour laws Unclaimed wages Colorado requirements State unemployment insurance laws = 5 years State wage-hour laws = 3 years Unclaimed wages = 5 years

Record Retention Procedures Identify what information is in the employee master file data Identify what documents are needed from new employees Identify the best storage method Paper storage Micromedia storage (microfilm or microfiche) Media imaging Electronic vaulting Cloud storage Storage method used must be able to retrieve, print, and view documents when needed Disposal of data must be secure and reasonable

HIPAA Health Insurance Portability and Accountability Act of 1996 Designed to help employees and their families maintain health insurance coverage when the employees change or lose jobs Includes provisions with how employers, hospitals, physicians, and insurers handle confidential patient information HIPAA privacy law preempts state laws that are contrary to federal law

Record Retention Tips and Tricks Category Retention Period Trick To Remembering ADA 1 year 1st letter of the alphabet = 1 Time Sheets 2 years 2 words = 2 HR 3 years 2 letters + 1 = 3 Tax 4 years 3 letters + 1 = 4 OSHA 5 years 4 letters + 1 = 5 HIPPA 6 years 5 letters + 1 = 6

DO YOU KNOW??? If the DOL requests a Form I-9 for inspection, how long does the employer have to produce the Form I-9? What records must be kept under the FLSA for at least two years from their last date of entry? What is the general retention period under the IRC for copies of employer tax returns and information returns? What are the retention requirements for the Form I-9?