Maintaining accurate and comprehensive HR documentation is not just a best practice—it’s a legal necessity. Proper HR documentation ensures compliance with labor laws, provides clear guidelines for employees, and protects the company in the event of legal disputes. But with so many different types of records and documents to manage, what are the essentials that every company must maintain?

The Importance of HR Documentation

HR documents serve as the backbone of your company’s relationship with its employees. They outline expectations, rights, responsibilities, and benefits. These documents also provide a record of compliance with various labor laws and regulations, which can be critical in avoiding fines or defending against legal claims. For companies with remote or hybrid workforces, maintaining these documents digitally and ensuring they are easily accessible is crucial for both compliance and efficiency.

Essential HR Documents Every Company Must Maintain

Employee Personnel Files:

Contents: Personnel files should include an employee’s application and resume, offer letter, employment contract, performance reviews, disciplinary records, and any changes to their employment status. These records are vital for tracking an employee’s history with the company and for managing promotions, raises, or terminations.

Compliance Role: Accurate personnel files help ensure that decisions regarding promotions, raises, and terminations are based on documented performance and conduct, which is crucial for avoiding discrimination claims.

I-9 Forms and Verification Documents:

Contents: The I-9 form is required by federal law to verify an employee’s eligibility to work in the United States. Along with the form, employers must maintain copies of the documents used to verify an employee’s identity and employment eligibility, such as a passport or driver’s license.

Compliance Role: Keeping these forms up-to-date and securely stored is essential for compliance with the Immigration Reform and Control Act (IRCA). Non-compliance can result in significant fines.

Payroll Records:

Contents: Payroll records should include timesheets, wage calculations, tax withholdings, and any documentation related to bonuses, overtime, or benefits. These records are crucial for ensuring employees are paid correctly and for tracking company expenses.

Compliance Role: Payroll records are vital for compliance with the Fair Labor Standards Act (FLSA), which governs minimum wage, overtime pay, and recordkeeping requirements. These records must be maintained for at least three years.

Labor Law Posters and Notices:

Contents: Labor law posters inform employees of their rights under federal and state labor laws. These include minimum wage notices, OSHA guidelines, and anti-discrimination laws.

Compliance Role: Businesses must display these posters in a visible area or provide virtual versions for remote workers. Failure to do so can result in fines and legal penalties.

Employee Handbook:

Contents: An employee handbook should cover company policies, code of conduct, benefits, disciplinary procedures, and other essential information that governs the employer-employee relationship.

Compliance Role: The handbook helps ensure that all employees are aware of their rights and responsibilities, reducing the risk of misunderstandings and disputes. It also serves as a legal document in case of any claims of unfair treatment or discrimination.

How Wand’s HR Compliance Software Can Help

Keeping track of these essential HR documents can be daunting, especially as your company grows. Wand’s HR compliance software simplifies this process by offering a centralized platform for managing and updating all necessary HR documents.

In Short

Maintaining essential HR documents is crucial for legal compliance, operational efficiency, and protecting your business from potential lawsuits. By keeping accurate and comprehensive records—such as personnel files, I-9 forms, payroll records, labor law posters, and an employee handbook—you can ensure your company is well-prepared for any compliance challenges. Here at Wand, we value HR and compliance, so we are meeting your remote team where they are. Whether it be your intranet, notion page, or SharePoint site, our effortless out-of-the-box compliance tool ensures you cater to the needs of a modern workforce. Head to our site to learn more.