As the weather begins to turn warmer, many of us get the itch for a little “spring cleaning.” For small businesses, your efforts should not stop at home. It is also good idea to channel this energy into reviewing, organizing, and purging your human resources records.
Properly maintaining human resources records has several distinct advantages for employers. First, thorough and accurate recordkeeping allows you to quickly find information about your employees, saving both time and money. In addition, it may even assist in shielding you from liability in the event of an employee lawsuit or government audit.
Reviewing: During any HR records audit, it is important to review a cross-section of personnel files to ensure that they comply with applicable state and federal employment laws. While personnel files should include resumes, applications, performance evaluations, and employment contracts and other records, there are also some records that must be retained. Employers are required to keep certain information about employees’ wages and hours, including hours worked, total wages, and deductions.
Updating: It is also important to verify that all of your Human Resources records are up to date. For instance, you should make sure that the file contains documents reflecting any recent promotions, disciplinary actions, raises, performance reviews, etc. In addition, records management procedures should also be updated to comply with any employment law changes. For instance, the Patient Protection and Affordable Care Act imposes a number of new record keeping obligations on employers.
Organizing: Keeping detailed records is not helpful unless you can easily access them. If you do not have standardized record management policies and procedures, this is a good time to start. For employers, it is important to make sure that documents make it into the correct files. For instance, I-9 forms, investigative documents, and medical records (including Family and Medical Leave Act forms, Leaves of Absence forms, and the Americans with Disabilities Act information) should be maintained separately and not placed in employees’ general personnel files.
Purging: Upon reviewing your personnel files, you may find documents that are outdated or reference employees that are no longer with the company. However, before throwing away any documents, be sure to check any applicable state or federal document retention requirements. For instance, employers are required to preserve at least three years of payroll records, while records on which wage computations are based should be retained for two years. Please keep in mind that, once you are aware of threatened, anticipated or served litigation, the requirement to preserve evidence (“Litigation Hold”) supersedes standard document destruction practices.
Portability of estate and gift tax enables a surviving spouse to inherit any unused portion of their deceased spouse’s federal estate and gift tax exemption. So, if one spouse doesn’t utilize their full exemption, the surviving spouse can effectively double their exemption amount with regard to estate tax liability. For married couples, portability offers a […]
Pet Trusts in New Jersey and New York: A Practical Estate Planning Tool
For many of us, pets are more than companions—they are members of the family. Yet they are often overlooked or inadequately provided for when it comes to estate planning. A pet trust offers a legally enforceable way to ensure that your animal continues to receive proper care if you become incapacitated or pass away. As […]
For many New Jersey business owners, a closely held company represents decades of work, financial investment, and personal sacrifice. Trusts in business succession planning are one of the most effective tools for protecting that value, allowing founders to control how and when the business passes to the next generation while reducing the risk of disputes, […]
Read Before You Sign: IT Contract Pitfalls Every NJ Business Should Know
In today’s digital economy, New Jersey businesses of all sizes rely heavily on technology vendors, software providers, cloud platforms, and managed IT services. Whether your company is purchasing software, migrating data to the cloud, engaging a cybersecurity consultant, or entering into a long-term managed services agreement, a careful IT contract review can have significant operational, […]
Non-disclosure agreements (NDAs) remain a critical tool for protecting sensitive business information. However, New York NDA requirements have evolved, and businesses must ensure these agreements are carefully drafted to remain enforceable. In a competitive market like New York City, NDAs are commonly used to protect proprietary information, client relationships, and strategic plans. At the same […]
How Courts Evaluate Testamentary Capacity and Undue Influence Will contests in New Jersey are difficult to win, given the strong presumption that a properly executed will reflects the testator’s intent. However, challenges based on lack of testamentary capacity and undue influence remain common, particularly where there are concerns about mental capacity or the involvement of […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
