Recordkeeping Requirements for HR Teams in 2025

HR recordkeeping is more than a housekeeping task—it’s a compliance obligation with serious consequences. In 2025, with increasingly distributed workforces, multi-state operations, and growing scrutiny from regulators and investors alike, HR teams must ensure that records are accurate, secure, and audit-ready at all times.

From hiring to offboarding, every stage of the employee lifecycle carries specific documentation requirements. This guide outlines the key categories of HR recordkeeping, recent updates, and best practices for maintaining compliance in today’s complex environment.

Core HR Record Categories

1.     Personnel Files
These include job applications, offer letters, job descriptions, performance evaluations, discipline records, and resignation letters. Employers should maintain personnel files separately from medical or confidential records and limit access to authorized personnel only.

2.     Medical and Benefits Records
Under the Americans with Disabilities Act (ADA) and other laws, medical information—including FMLA leave requests, workers’ comp claims, and accommodation requests—must be stored separately from general personnel files. Benefits enrollment forms, COBRA notices, and retirement plan documents also fall under this category.

3.     Payroll and Compensation Records
Employers are required to maintain records that support pay practices, including timecards, wage statements, bonus calculations, and compensation change documentation. These records help ensure compliance with the Fair Labor Standards Act (FLSA) and state wage laws.

4.     I-9 and Work Authorization Records
Form I-9 must be completed and retained for every employee hired in the U.S., with specific timelines for retention post-termination. Employers may store these electronically, but must ensure access is limited and retrieval is prompt in the event of an audit.

5.     EEO and Diversity Reporting
Employers subject to federal EEO-1 reporting requirements must track demographic data and job categories accurately. Records supporting affirmative action programs or pay equity analyses should be retained and secured appropriately.

6.     Safety and OSHA Records
For employers covered under OSHA, injury logs (Forms 300, 300A, and 301) and safety training records must be kept and posted according to federal and state guidelines.

Key Updates in 2025

·       Remote I-9 Flexibility (Sunset & Shift): DHS has ended COVID-era flexibilities and introduced a new optional virtual inspection process for qualifying employers. To use it, employers must participate in E-Verify and follow updated document retention rules.

·       Pay Transparency Documentation: States like Illinois, Minnesota, and New Jersey now require retention of pay range disclosures from job postings, as well as justification records for compensation decisions to support pay equity audits.

·       AI and Automated Systems Records: New regulations in California and New York require documentation of AI-based hiring tools, including audit logs and notices of use provided to candidates.

·       Electronic Access Controls: As more documents are stored digitally, auditors are increasingly requesting access logs, system permission policies, and evidence of routine data backups.

Common Retention Periods

Note: These are FEDERAL minimums. When in doubt as a quick heuristic, default to 7 years to cover all state regulations for multi-state institutions.

Employers may be subject to longer retention requirements under state laws, collective bargaining agreements, or specific government contracts.

Best Practices for Recordkeeping Compliance

·       Maintain Separate File Types: Store personnel, medical, I-9, and investigation records in separate folders or systems to ensure confidentiality and legal compliance.

·       Standardize Access: Limit access to sensitive files based on role (e.g., HRBP, legal) and log all views, edits, and downloads.

·       Use an HRIS with Retention Controls: Select a system that supports automated purging schedules and retention alerts.

·       Document Policy Reviews and Acknowledgments: Maintain logs for every update to employee handbooks or policies and track who acknowledged receipt and when.

·       Conduct Annual File Audits: Set a recurring review of all record categories to ensure completeness, accuracy, and destruction of expired records.

Conclusion

In an era of heightened legal scrutiny and digital complexity, HR recordkeeping must move beyond storage and into strategy. A well-designed, consistently applied recordkeeping framework supports compliance, speeds up audit readiness, and protects both the company and its employees.

By aligning record retention practices with current regulations and business needs, HR teams can avoid risk—and build operational trust.

References:

·  U.S. Department of Labor (DOL). (2008). Fact Sheet #21: Recordkeeping Requirements under the Fair Labor Standards Act (FLSA).

·  U.S. Department of Labor (DOL). 29 CFR Part 516 – Records to Be Kept by Employers.

·  U.S. Citizenship and Immigration Services (USCIS). (2025). Form I-9 and Virtual Verification Procedure.

·  U.S. Equal Employment Opportunity Commission (EEOC). (2024). EEO‑1 Component 1 Instruction Booklet.

·  State Pay Transparency Guides. (2024–2025). State-Level Pay Transparency Laws and Reporting Requirements.

·  California Civil Rights Department (CRD). (2025). Employment Regulations for Automated Decision Systems.

·  Code of Federal Regulations (eCFR). (2024). 29 CFR 825.500 – FMLA Recordkeeping Requirements.

·  SHRM. (2022). Federal Record Retention Requirements: HR Cheat Sheet.