I recently had a conversation with a client who was doing a great job building her team—but found herself completely overwhelmed when it came to organizing employee records. She called and said, “Barbara, I have no idea what goes in which file. I just know I’m not supposed to keep everything in one place!”
She was right—and thankfully, this is exactly the kind of thing I help clients with every day.
When it comes to personnel files, proper organization isn’t just about neatness—it’s about compliance, privacy, and protection for both you and your employees.
Here’s the simple breakdown I shared with her (and now with you!):
You should be maintaining three separate files for each employee:
- General Personnel File
This is your employee’s main file and includes job-related documents that supervisors may need to access, like:
- The job application, resume, and offer letter
- Performance evaluations
- Pay rate changes
- Disciplinary actions (if not related to medical or legal matters)
- Signed policy acknowledgments
- Training records
- Termination or resignation documents
- Confidential File
This file holds sensitive or legally protected information that should only be seen by authorized individuals. It includes:
- Doctor’s notes or FMLA paperwork
- Workers’ compensation records
- Background checks
- Drug/alcohol test results
- Garnishments or legal orders
- Emergency contact and personal ID information
- Internal investigations
- I-9 File
Every employer must complete an I-9 for each new hire, and these forms should be stored separately from all other personnel files. This makes it easier to handle an audit and avoids any accidental access to immigration-related documents.
(Bonus) Manager File – Optional
Some managers like to keep a “working file” for informal notes or coaching conversations. That’s totally fine—just remember: if it influences a formal decision (like a raise or termination), move it into the general file to keep your records complete and accurate.
After walking my client through this, she breathed a huge sigh of relief and said, “I feel so much more confident now!” And that’s the goal—helping business owners understand the why behind the what, so they can move forward feeling in control.
If you’ve ever asked yourself, “Where do I keep this document?”—you’re not alone. Let’s make compliance a little less complicated, one folder at a time.
