The California Employee File Funhouse: How Long Must This Ride Last?
You hired an amazing team, you're conquering deadlines left and right, things are humming along like a Beyoncé concert. But then, a question pops into your head: "Wait, how long do I need to keep all this employee paperwork?"
Fear not, fellow Californian employer! Here's a breakdown of the employee file funhouse, minus the creepy clowns (we hope).
The Great Retention Rollercoaster: Four Years is the New Three
Buckle up! As of January 1st, 2022, California law requires employers to hold onto employee records for a minimum of four years. This applies to both current and former employees, including applicants who weren't hired (phew, you dodged a bullet there on that resume with the glitter glue).
But Wait, There's More! The DFEH Complaint Twist
The DFEH, or Department of Fair Employment and Housing, is like the hall monitor of employee rights. If an employee files a complaint with them, you might need to hold onto those files for even longer. The exact timeframe depends on how the complaint shakes out, but generally, it's until the issue is resolved or a certain period after a "Right-to-Sue Notice" is issued.
The Shredding Salvation Station: When Can You FINALLY Ditch the Files?
Once those four years are up (or the DFEH complaint business is settled), you can finally hit the shred button (or employ a secure electronic deletion process, whichever works for you).
Important Note: There are some exceptions to this rule, like specific wage and hour records that might need a longer shelf life. Always consult with your friendly neighborhood employment lawyer for the full scoop.
Bonus Tip: While you're free to toss those files after the retention period, some employers choose to hang onto them for longer for their own record-keeping purposes. Just be sure you have a plan for secure storage!
Frequently Asked Funhouse Questions:
How to know for sure how long to keep employee files? Answer: Consult an employment lawyer, they'll be your roadmap out of the funhouse.
How to avoid a DFEH complaint in the first place? Answer: Treat your employees fairly! Happy employees mean less paperwork headaches.
How to shred employee files securely? Answer: Hire a professional shredding service or invest in a good ol' paper shredder (industrial strength recommended).
How to avoid a visit from the ghost of paperwork past? Answer: Have a clear record retention policy and stick to it!
How to maintain your sanity while dealing with HR paperwork? Answer: Chocolate. Always helps.
