6.4 Recordkeeping and reporting requirements

Recordkeeping and reporting are crucial aspects of employment law. Employers must maintain accurate records of employee data, payroll, personnel files, and workplace incidents to comply with various regulations and protect both themselves and their workers.

Proper documentation helps employers meet legal obligations, defend against claims, and ensure fair treatment of employees. Reporting requirements, such as new hire reporting and wage reports, allow government agencies to monitor compliance and collect necessary data for various purposes.

Recordkeeping requirements

• Employers must maintain accurate and comprehensive records to ensure compliance with various employment laws and regulations
• Proper recordkeeping helps protect both employers and employees by providing documentation of employment practices, compensation, and other important aspects of the employment relationship

Employee data

Top images from around the web for Employee data

• 

  Form I-9 - Wikipedia View original

  Is this image relevant?

• 

  Information Management for Employment Law – Simple Book Publishing View original

  Is this image relevant?

• 

  IGRM « EDRM View original

  Is this image relevant?

• 

  Form I-9 - Wikipedia View original

  Is this image relevant?

• 

  Information Management for Employment Law – Simple Book Publishing View original

  Is this image relevant?

1 of 3

Top images from around the web for Employee data

• 

  Form I-9 - Wikipedia View original

  Is this image relevant?

• 

  Information Management for Employment Law – Simple Book Publishing View original

  Is this image relevant?

• 

  IGRM « EDRM View original

  Is this image relevant?

• 

  Form I-9 - Wikipedia View original

  Is this image relevant?

• 

  Information Management for Employment Law – Simple Book Publishing View original

  Is this image relevant?

1 of 3

• Employers must collect and maintain basic identifying information for each employee, such as name, address, phone number, and Social Security number
• Employee data also includes job title, department, hire date, and termination date (if applicable)
• Additional information may be required depending on the nature of the business and specific legal requirements, such as emergency contact information, education and training records, and performance evaluations

Payroll records

• Payroll records document an employee's compensation, including wages, salaries, bonuses, and other forms of pay
• These records must include hours worked, pay rates, deductions (taxes, benefits, garnishments), and net pay for each pay period
• Employers must retain payroll records for a specified period, typically 3-4 years, to comply with federal and state laws (Fair Labor Standards Act, Internal Revenue Code)

Personnel files

• Personnel files contain comprehensive employment records for each employee, including job application, resume, offer letter, employment contract, performance evaluations, disciplinary actions, and training records
• These files may also include benefits enrollment forms, leave requests, and other employment-related documents
• Employers should maintain separate files for medical records, I-9 forms, and other sensitive information to ensure confidentiality and comply with privacy laws (Americans with Disabilities Act, Health Insurance Portability and Accountability Act)

Form I-9

• Form I-9 is used to verify an employee's identity and eligibility to work in the United States, as required by the Immigration Reform and Control Act
• Employers must obtain a completed I-9 form from each new hire within three business days of their start date
• I-9 forms and supporting documentation (passport, driver's license, Social Security card) must be retained for three years after the hire date or one year after termination, whichever is later

Occupational injuries and illnesses

• The Occupational Safety and Health Act (OSHA) requires employers to maintain records of work-related injuries and illnesses
• Recordkeeping requirements apply to most businesses with more than 10 employees, with some exceptions for low-risk industries
• Employers must record each injury or illness on OSHA Form 301 (Injury and Illness Incident Report) and maintain a log of all incidents on OSHA Form 300 (Log of Work-Related Injuries and Illnesses)

OSHA Form 300

• OSHA Form 300 is a log of all recordable work-related injuries and illnesses, including the employee's name, job title, date of injury or illness onset, description of the incident, and number of days away from work or on restricted duty
• Employers must update the log within seven calendar days of receiving information about a recordable incident
• The log must be maintained at each establishment and retained for five years

Record retention periods

• Different types of employment records have varying retention requirements under federal and state laws
• Payroll records: 3-4 years (Fair Labor Standards Act, Internal Revenue Code)
• Personnel files: 1-3 years after termination (Age Discrimination in Employment Act, Title VII of the Civil Rights Act)
• I-9 forms: 3 years after hire date or 1 year after termination, whichever is later (Immigration Reform and Control Act)
• OSHA records: 5 years (Occupational Safety and Health Act)

Confidentiality of records

• Employers must maintain the confidentiality of sensitive employee information, such as medical records, Social Security numbers, and personal identifying information
• Access to confidential records should be limited to those with a legitimate business need, and appropriate safeguards must be in place to prevent unauthorized disclosure
• Employers should have written policies and procedures governing the collection, storage, and disposal of confidential employee information to ensure compliance with privacy laws (Americans with Disabilities Act, Health Insurance Portability and Accountability Act)

Reporting requirements

• In addition to maintaining accurate records, employers must also comply with various reporting requirements at the federal, state, and local levels
• Timely and accurate reporting helps government agencies monitor compliance with employment laws, collect necessary taxes and contributions, and gather data on workforce trends

New hire reporting

• Employers must report newly hired and rehired employees to their state's designated new hire reporting agency within 20 days of the hire date (in some states, the deadline may be shorter)
• New hire reporting helps enforce child support orders, detect unemployment insurance fraud, and improve the accuracy of wage and employment data
• Required information typically includes the employee's name, address, Social Security number, and hire date, as well as the employer's name, address, and Federal Employer Identification Number (FEIN)

Quarterly wage reports

• Most states require employers to file quarterly wage reports detailing each employee's wages and tax withholdings for the previous quarter
• These reports are used to calculate unemployment insurance taxes and ensure proper payment of state income taxes
• Quarterly wage reports are typically due by the last day of the month following the end of the quarter (April 30, July 31, October 31, and January 31)

Annual wage reports

• Employers must file annual wage reports with their state employment agency, summarizing each employee's wages and tax withholdings for the previous calendar year
• Annual wage reports are used to reconcile quarterly filings and ensure accurate reporting of employment data
• The deadline for filing annual wage reports varies by state but is typically in January or February of the following year

W-2 forms

• Employers must provide each employee with a Form W-2 (Wage and Tax Statement) by January 31 of the following year, summarizing their wages, tips, and other compensation, as well as federal, state, and local tax withholdings for the previous calendar year
• Employers must also file copies of W-2 forms with the Social Security Administration and state tax agencies by the last day of February (or March 31 if filing electronically)
• W-2 forms are used to report employee income and ensure proper payment of income taxes and Social Security and Medicare contributions

1099 forms

• Employers must provide independent contractors and other non-employee service providers with a Form 1099-MISC (Miscellaneous Income) by January 31 of the following year, reporting payments of $600 or more made during the previous calendar year
• Copies of 1099 forms must also be filed with the IRS and state tax agencies by the last day of February (or March 31 if filing electronically)
• 1099 forms help ensure proper reporting of income for non-employees and prevent misclassification of workers

EEO-1 reports

• The Equal Employment Opportunity Commission (EEOC) requires certain employers to file an annual EEO-1 report, providing a demographic breakdown of their workforce by race, ethnicity, gender, and job category
• EEO-1 reporting requirements apply to private employers with 100 or more employees, as well as federal contractors with 50 or more employees and contracts of $50,000 or more
• The EEO-1 report is typically due by March 31 of the following year and helps the EEOC monitor compliance with anti-discrimination laws and identify potential patterns of discrimination

Affirmative action plans

• Federal contractors with 50 or more employees and contracts of $50,000 or more must develop and maintain written affirmative action plans (AAPs) to ensure equal employment opportunities for women, minorities, individuals with disabilities, and protected veterans
• AAPs must include an analysis of the contractor's workforce, identification of any underrepresentation of protected groups, and goals and timetables for addressing any disparities
• Contractors must update their AAPs annually and make them available for inspection by the Office of Federal Contract Compliance Programs (OFCCP) upon request

OSHA reporting

• Employers must report severe work-related injuries and illnesses to OSHA, including fatalities (within 8 hours) and hospitalizations, amputations, or losses of an eye (within 24 hours)
• Certain high-risk industries are also required to submit annual electronic reports of all recordable injuries and illnesses (OSHA Form 300A) by March 2 of the following year
• OSHA reporting helps the agency identify and address workplace safety hazards and enforce safety and health standards

Workers' compensation reporting

• Employers must report work-related injuries and illnesses to their workers' compensation insurance carrier and state workers' compensation agency, in accordance with state-specific requirements
• Reporting deadlines vary by state but typically range from 3 to 10 days after the employer becomes aware of the injury or illness
• Prompt reporting of workers' compensation claims ensures that injured employees receive necessary medical treatment and benefits and helps employers manage claim costs and maintain a safe workplace

Compliance and penalties

• Employers must comply with all applicable recordkeeping and reporting requirements to avoid legal and financial penalties
• Government agencies conduct periodic audits and investigations to ensure compliance and may impose fines, penalties, or other sanctions for violations

Recordkeeping audits

• Various government agencies, including the Department of Labor (DOL), Equal Employment Opportunity Commission (EEOC), and Occupational Safety and Health Administration (OSHA), may conduct recordkeeping audits to ensure compliance with employment laws and regulations
• Audits may be triggered by employee complaints, random selection, or targeted industry investigations
• During an audit, employers must provide access to required records and demonstrate adherence to recordkeeping requirements

Reporting deadlines

• Employers must adhere to specific deadlines for filing reports with government agencies, such as quarterly wage reports, annual wage reports, EEO-1 reports, and OSHA Form 300A
• Failure to meet reporting deadlines may result in fines, penalties, or other enforcement actions
• Employers should establish internal processes and reminders to ensure timely completion and submission of required reports

Failure to maintain records

• Employers who fail to maintain required records, such as payroll records, I-9 forms, or OSHA logs, may face civil or criminal penalties
• For example, failure to maintain I-9 forms can result in fines ranging from $230 to$2,292 per violation, depending on the severity and number of violations
• Inadequate recordkeeping may also hinder an employer's ability to defend against employee claims or government investigations

Failure to report

• Employers who fail to file required reports, such as new hire reports, quarterly wage reports, or W-2 forms, may be subject to fines and penalties
• For instance, failure to file a Form W-2 can result in penalties of $50 per form, up to a maximum of$556,500 per year (as of 2021)
• Repeated or willful failures to report may lead to higher penalties or criminal charges

Civil penalties

• Government agencies may impose civil penalties for recordkeeping and reporting violations, with fines varying based on the specific law, severity of the violation, and number of occurrences
• Examples of civil penalties include:
  • Failure to maintain OSHA records: Up to $13,653 per violation (as of 2021)
  • Failure to file EEO-1 report: Up to $2,000 per violation (as of 2021)
  • Failure to provide employee access to records: Up to $110 per violation (as of 2021)

Criminal penalties

• In some cases, severe or willful recordkeeping and reporting violations may result in criminal charges and penalties, including fines and imprisonment
• For example, willful violations of OSHA recordkeeping requirements can result in criminal fines of up to $10,000 and imprisonment for up to 6 months
• Criminal penalties are typically reserved for the most egregious cases involving intentional misconduct or repeated violations

Electronic recordkeeping

• Many employers now use electronic systems to store and manage employment records, taking advantage of increased efficiency, accessibility, and cost savings
• However, electronic recordkeeping must still comply with all applicable laws and regulations, including requirements for data security, retention, and employee access

Electronic storage systems

• Employers may use various electronic storage systems, such as human resource information systems (HRIS), document management systems, or cloud-based platforms, to maintain employment records
• Electronic storage systems must ensure the integrity, reliability, and accessibility of records, as well as protect against unauthorized alteration or deletion
• Employers should select systems that comply with relevant standards and guidelines, such as the Department of Labor's electronic recordkeeping requirements (29 CFR Part 516)

Electronic signatures

• Electronic signatures can be used to sign and authenticate employment records, such as I-9 forms, benefits enrollments, and performance evaluations
• To be legally valid, electronic signatures must meet certain requirements, such as being unique to the signer, under the signer's sole control, and linked to the record in a manner that detects any subsequent changes
• Employers should use electronic signature solutions that comply with the Electronic Signatures in Global and National Commerce Act (ESIGN) and the Uniform Electronic Transactions Act (UETA)

Data security

• Employers must implement appropriate security measures to protect electronically stored employment records from unauthorized access, disclosure, or tampering
• Security measures may include access controls, encryption, firewalls, and employee training on data protection policies and procedures
• Employers should also ensure compliance with any industry-specific data security standards, such as the Health Insurance Portability and Accountability Act (HIPAA) for protected health information

Backup and recovery

• Employers must maintain secure backup copies of electronic employment records to protect against data loss due to system failures, cyber-attacks, or natural disasters
• Backup procedures should include regular data backups, off-site storage, and testing of restoration processes
• Employers should also develop and test disaster recovery and business continuity plans to ensure the availability and integrity of employment records in the event of a disruption

Employee access to records

• Employees have the right to access certain employment records, such as their personnel files, payroll records, and medical records, under various federal and state laws
• Employers must provide employees with reasonable access to these records upon request and may be required to provide copies in some cases

Right to inspect records

• Many states have laws granting employees the right to inspect their personnel files and other employment records
• For example, under California law (Labor Code Section 1198.5), employees have the right to inspect their personnel files within 30 days of a written request
• Employers must make records available for inspection at a mutually convenient time and location, during normal business hours

Copies of records

• Some states require employers to provide employees with copies of their employment records upon request, either free of charge or for a reasonable fee
• For instance, Massachusetts law (General Laws Chapter 149, Section 52C) entitles employees to receive a copy of their personnel file within 5 business days of a written request, at no cost to the employee
• Employers should be familiar with the specific requirements of their state's laws regarding copies of employment records

Reasonable access times

• Employers must provide employees with reasonable access to their records, typically within a specified timeframe after receiving a request
• Access times may vary depending on the state law and the type of record requested
• For example, under the Fair Labor Standards Act (FLSA), employers must provide employees with access to their payroll records within a reasonable period, usually within 72 hours of a request

Confidential information vs disclosable information

• Some employment records may contain confidential information that employers are not required to disclose to employees, such as:
  • Records relating to ongoing investigations or legal proceedings
  • Reference letters or other materials obtained with an expectation of confidentiality
  • Certain medical records or personal information about other employees
• Employers should redact or remove confidential information before providing employees with access to their records
• Disclosable information typically includes performance evaluations, disciplinary actions, compensation history, and other non-confidential personnel records