But now, that same “keep everything” strategy can cost you as much as a lawsuit. Maybe even more.
That’s because the Federal Trade Commission’s “disposal rule” says you’ve got to get rid of certain data on job applicants’ records on a certain timetable.
That's why it's important to inventory your records and draw up a company retention schedule. You have to know what you have and how long to keep it—legally and for your own business purposes—before you can establish an efficient records management system.
Whether you use the guidelines in this section or conduct your own research to establish a retention schedule, keep the following in mind:
- Don't be a "just in case" hoarder; store records only for legal, operational or archival reasons.
- Retain and destroy documents systematically.
- Segment records according to a retention timetable.
- Don't retain unscheduled temporary materials, such as drafts, reminder notes, work sheets or extra copies.
- Don't hang onto documents just for their sentimental or public relations value. Information must earn its keep, like any other asset. A comprehensive record of the past that fosters a "company memory" can be an asset, but be sure to minimize your legal liability while doing so.
Free up storage, save precious office "real estate" and throw out 13 categories of personnel records cluttering up your files. Personnel Records: What to Keep, What to Toss shows you how — efficiently, effectively, and without violating any of the wildly different laws regulating personnel docs. Learn more...
When No Requirements Exist . . .
What can you do if a law does not state a specific retention period?This is not uncommon. Statutes and regulations often contain a phrase, "The following records shall be maintained . . . ," but they fail to tell you the retention period. Usually the phrase is interpreted as meaning "permanently" because there's no permission given for destruction of the records.
How do you deal with this quandary?
Adopt a 3-year policy
Under the Uniform Preservation of Private Business Records Act (UPPBRA), whenever a law does not specify a retention period, businesses should keep their records for three years. If you destroy them sooner, you risk subjecting your organization to legal problems. However, only eight states have adopted this act or something equivalent.
Courts could certainly require you to hold records long enough to permit the state to monitor compliance with its regulations—a "reasonable" period of time. Based on federal records and the UPPBRA, a three-year retention period should be sufficient.
With Personnel Records: What to Keep, What to Toss, you'll eliminate all that dangerous guesswork, including:
Get your copy today!
- Exactly how long to retain job applications, résumés, job descriptions, disciplinary letters, attendance records, leave requests, medical-related data, employment agreements, payroll records, salary information, benefits information and more
- How electronic storage requirements differ from paper requirements – and how to comply with both sets – without going nuts
- Which documents need to be maintained in separate files – and why
- How to handle medical records, and who should – and should not – have access to those files
- How to create documentation for performance reviews, investigations and discipline so they stave off lawsuits and stand up in court
- What to do when employees (or lawyers) ask to review personnel files
- Best practices for destroying records – safely
- And much more!
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/14499/company-records-what-to-do-when-no-requirements-exist "