Maintaining Organized Personnel Files Can Ultimately Reduce Unnecessary Fines.
The importance of maintaining organized personnel files is widely overlooked. Many employers, however, are unaware of federal and state laws that require employers to maintain personnel records for various time periods. Maintaining proper personnel files will avoid fines for noncompliance and also become the foundation for defending against unfounded claims of wrongful termination, unpaid overtime or unfair denial of a job application or promotion opportunity. Incomplete personnel files, however, may turn into evidence for the plaintiff in a lawsuit.
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