Handling employee records is a sensitive task, and it’s important to be clear about who has permission to access what. These files often contain confidential details, from Social Security numbers and salary history to medical information and disciplinary actions. Managing access is about more than just good housekeeping, it’s a matter of compliance, trust, and risk management. So, who should be allowed to access employee files? Here’s what that really means in practice.
Key Roles with Access to Employee Files
HR Professionals or Administrators
Whether your HR function is handled by a dedicated team or an appointed HR administrator, authorized access to employee personnel files is essential. These individuals are responsible for maintaining accurate records, updating employment documentation, and ensuring compliance with federal, state, and local labor regulations. Proper access allows them to manage everything from performance reviews and benefits enrollment to disciplinary documentation, medical information, and legal audits.
The Employee Themself
In many states, employees have the legal right to review their own personnel files. Even when not required by law, offering transparency can build trust. Just be sure you know your state’s specific regulations around timing, scope, and how that access must be granted.
Supervisors and Managers
Managers only have access to the personnel file when preparing for a performance review or addressing a disciplinary issue. They may not have access to pay details, medical information, injury information, or anything outside the scope of managing their team.
Payroll and Benefits Teams
Those handling payroll, taxes, or employee benefits need access to certain data like compensation records, deductions, and benefit enrollment forms. But again, this access should be limited to just the data they need to do their job.
Legal Representatives
Your legal counsel or compliance team might need access in the event of a workplace investigation, an audit, or potential litigation. It’s a good idea to have a process in place for granting temporary or case-specific access to legal professionals.
Who Should Not Have Access?
Pretty much everyone else. Just because someone is in a leadership role doesn’t mean they’re entitled to view employee files. Access should be on a strictly need-to-know basis to protect privacy, maintain confidentiality, and reduce the risk of discrimination or bias.
Best Practices for Organizing Employee Records
Properly organizing your employee records isn’t just a best practice, it’s often a legal necessity. A well-structured filing system helps ensure only authorized individuals can access the right documents, while also simplifying audits, onboarding, and offboarding.
We recommend maintaining five distinct files for each employee :
- Form I-9 File: All Form I-9s should be kept separate from other employee documents, ideally in a master file or designated binder, because they are subject to different storage and retention requirements.
- Medical File: Any documents related to an employee’s medical condition or history, including benefits enrollment forms, should be stored separately to comply with ADA requirements and other privacy laws. These documents should never influence employment decisions like promotions or terminations. Two federal laws, the Americans with Disabilities Act (ADA) and the Health Insurance Portability and Accountability Act (HIPAA), have strict requirements for keeping and storing medical files. Only employers with more than 50 workers meet HIPAA eligibility requirements. They must offer enrollment in group health plans. Self-insured employers and small businesses are exempt from HIPAA, but all businesses should keep their health care information in a confidential file.
- Personnel File: This is the core file that contains documentation related to hiring, performance evaluations, corrective actions, and other employment-related matters. Think of this as the file that tracks the employee’s journey through your organization.
- Payroll File: Store tax forms such as the W-4, garnishment documentation, and anything else related to pay or benefits that includes sensitive information like Social Security numbers.
- Injury File: If an employee experiences a workplace injury, create a separate file that includes workers’ compensation paperwork and any medical documentation specific to that injury.
No matter whether you store this information physically or digitally, it must be secured. For physical records, use locked cabinets in a secure area. For digital files, consider encrypted storage with strict access controls and regular backups. If you store I-9s electronically, make sure your system complies with specific federal standards. Those same guidelines are a smart benchmark for all your digital employee files.
Stay Secure and Organized with Commonwealth Payroll & HR
Managing employee files might seem like a behind-the-scenes task, but when it’s done right, it protects your business, supports your team, and helps build a culture of trust. Looking to shift your paper records to a secure digital platform that comes with dedicated customer service and support specialists? Contact us and let’s simplify your processes together.
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