Hr recordkeeping simplified

– KPA CONFIDENTIAL –

HR Recordkeeping SimplifiedThank you for joining us today.

We will begin at 10am Mountain Time.

– KPA CONFIDENTIAL –

HR Recordkeeping SimplifiedThank you for joining us today.

We will begin at 10am Mountain Time.

QuestionsQuestions

• If you have questions during the presentation, please submit them using the “Questions” feature

• Questions will be answered at the end of the webinar

4

Paper, Paper Everywhere!Paper, Paper Everywhere!

• Each employee generates on average 100 HR transactions per year at an average cost of $10 per transaction in administrative processing and storage costs*

• During an average tenure an employee file will have between 25-32 pages

– Application– Benefit Information– Payroll Information– Performance Management

– KPA CONFIDENTIAL –

*Iron Mountain Document Management & ASUG/SAP Benchmark Study

5

Why It MattersWhy It Matters

“Litigation is the ultimate test of the adequacy of an employers record keeping practice” Allen Kato, Fenwick and West LLC

“Where is that darn file” HR managers everywhere

“What do you mean you have no record” Auditor

– KPA CONFIDENTIAL –

6

The Golden RuleThe Golden Rule

Keep applicant records for one year and employee records for duration of the employee relationship plus 7 years

Exceptions:Pension and welfare benefit plan records must be kept 6 years after termination of the employment relationship

Safety and toxic chemical exposure records must be kept for 30 years after termination of the employment relationship

– KPA CONFIDENTIAL –

7

HiringHiring

• Job Posting– Clear description of the job essential functions

• Job Applications– Have each applicant complete and sign an

application– Employment at will statement on all

applications– Statement of truthfulness and accuracy and

that false information or omission will be ground for rejection or termination

– Background checking authorization– Arbitration Agreement

– KPA CONFIDENTIAL –

8

HiringHiring

• Interview– Ask only job related questions– No statement that undermine the “at will

status”– Use standard forms to record answers

• Offer Letters– Confirms compensation and conditions of

employment– No statement that undermine the “at will

status”

– KPA CONFIDENTIAL –

9

HiringHiring

• Background Checking &Fair Credit Reporting Act– Notice and Disclosure Form– Adverse Action Letter– Copies of all reports– Keep any drug testing reports separate (with medical

records)• I-9

– Complete within 3 days after hired– Retain for 3 years after hired or 1 year after termination

by the Immigration Reform and Control Act

• Confidentiality Agreements

• Employee Handbook Acknowledgements

– KPA CONFIDENTIAL –

10

Employment RelationshipEmployment Relationship

• Notices of commendations or awards• Written warnings or documentation of oral

warnings• Performance appraisals• Attendance and absence records• Any signed acknowledgement of policies• Training records Tip: Keep both positive and negative

information in the file but no medical records

– KPA CONFIDENTIAL –

11

Employment RelationshipsEmployment Relationships

• Payroll and Compensation Records– Retain for at least 4 years– Do not include full Social Security #– Explanation of gross wage and total hours

worked plus any deductions

• Benefit Records– Retain for 6 years (ERISA)– Reasonable notice when cancelling any benefit

program (30-60 days)

– KPA CONFIDENTIAL –

12

Employment RelationshipsEmployment Relationships

• Medical Records– Separate File– ADA accommodations– Drug testing results– Physicals– Workers’ Compensation– OSHA reports– FMLA

• Leave Request• Some states may require payment of accrued leave at termination

• Performance Management– Promotions, Transfers, Appraisals and Discipline

– KPA CONFIDENTIAL –

13

TerminationTermination

• Reductions in Force– Document selection criteria– Adverse impact analysis– WARN notice

• Terminations– Releases– 21 days to consider and 7 days to revoke– COBRA

– KPA CONFIDENTIAL –

14

Electronic Recordkeeping Pros and ConsElectronic Recordkeeping Pros and Cons

• Improved Management – All HR related information is available online, providing managers more information upon which to base their employee management decisions

• Increased HR Manager Productivity –Reduce inquiries to HR from both employees and managers, freeing HR managers for other tasks

• Lower Administrative Costs – Document transportation and physical storage costs are eliminated. Administrative time is no longer spent looking for lost or misfiled documents

• Improved Control and Compliance – With the system’s workflow enforcing accountability and all actions automatically recorded in an audit trail, compliance with corporate standards and legal regulations is improved

• Security – Quality systems ensure storage complies with regulations such as HIPAA, EEOC and the Personal Data Privacy and Security Act but imperative that both the data and the physical systems are secure.

• Smoother Audits – With all HR related documentation available online internal and external audits are completed in less time with fewer people affected but all electronic information can be subpoenaed and usually retrieved

• Less Risk – With important documents online, the risk of lost or damaged documents is eliminated.

– KPA CONFIDENTIAL –

15

Common MistakesCommon Mistakes

• Failing to keep complete records• Keeping complete records but including

inaccurate information or “smoking guns”• Poor storage practices • Not limiting physical access• Keeping medical information in the same

files

– KPA CONFIDENTIAL –

16

Best Practices Best Practices

• Establish policies for retention and access• Maintain separate files for medical records• Review physical access controls and data access

on an bi- annual basis• Keep all paper files in a secure area (locked,

limited access)• Shred all document prior to disposal• Only use electronic systems that have

documented physical and data access security standards

– KPA CONFIDENTIAL –

17

Questions and AnswersQuestions and Answers

– KPA CONFIDENTIAL –

QUESTIONS?

Contact InformationContact Information

18– KPA CONFIDENTIAL –

The recorded webinar and presentation slides will be emailed to you today including your local representative’s contact information.

www.kpaonline.com

[email protected]

866-228-6587