Employee files are among the most sensitive documents any organization generates. They contain Social Security numbers, dates of birth, financial account information, medical data, performance history, and disciplinary records — exactly the kind of information that makes them both valuable to identity thieves and subject to strict legal protections. For HR professionals and business owners in New York, the question of employee file retention and shredding involves navigating a complex web of federal and New York State retention requirements, and then securely destroying records once those requirements are satisfied. Getting this wrong in either direction — shredding too early or keeping records forever — creates real legal and compliance risk.
This guide provides a comprehensive retention schedule for common HR document types, explains the legal basis for each requirement, and outlines best practices for secure destruction of personnel records. Remember that retention requirements can vary based on industry, the nature of the employment relationship, and specific circumstances (such as pending litigation). Always consult legal counsel for guidance specific to your situation.
Why Proper Employee Record Retention Matters
Before addressing when to shred, it’s worth understanding why the timing matters so much. Keeping records too short a time creates legal risk:
- EEOC regulations require that employment discrimination records be kept for minimum periods specifically so that employees can bring discrimination claims within the applicable limitations period
- Federal and state wage and hour laws require payroll records to be maintained for specific periods to defend against underpayment claims
- OSHA requires certain workplace safety records to be kept for decades
- Immigration records (I-9 forms) must be maintained for a specific post-employment period
Conversely, keeping records indefinitely creates privacy risk and ongoing liability:
- Old personnel files containing medical information, disciplinary history, and personal data create ongoing data breach exposure
- Records retained beyond their legal requirement may be discoverable in litigation, creating broader exposure than necessary
- Excessive retention violates the privacy expectations employees have about their personal information
Visit our compliance resources page for more on HR compliance obligations.
Federal and New York Employee Record Retention Schedule
Here’s a practical retention guide for common HR document types:
I-9 Forms (Employment Eligibility Verification)
Retain for the longer of: 3 years from the date of hire OR 1 year after the employee’s termination. Example: An employee hired January 1, 2020 and terminated March 1, 2025 — retain until March 1, 2026 (1 year post-termination).
Payroll Records
Under the Fair Labor Standards Act (FLSA): 3 years for basic payroll records; 2 years for supplementary records (time cards, wage rate tables). New York State Labor Law requires 6 years for most payroll records.
Employee Applications and Resumes (for hired employees)
Retain during employment plus 1 year post-termination (EEOC guidelines). Some attorneys recommend 4 years to cover the EEOC’s extended charge period.
Employee Applications and Resumes (for not-hired applicants)
Retain for 1 year from date of application under EEOC guidelines. Title VII and ADA require 1-year retention; ADEA requires 1 year for employers with 20+ employees.
Performance Reviews and Disciplinary Records
Retain during employment plus at least 2 years post-termination. If related to a discrimination charge or litigation, maintain under legal hold.
Benefit Enrollment and ERISA Records
ERISA requires 6 years for plan records. COBRA election notices: 6 years. FMLA records: 3 years.
OSHA Records
OSHA 300 logs, 300A summaries, and 301 incident reports: 5 years. Some hazardous substance exposure records: 30 years.
Medical and Disability Records
ADA and FMLA require separate, confidential storage of employee medical records. Retain for the duration of employment plus 3 years (FMLA) or through any applicable litigation hold.
New York-Specific Requirements
New York State imposes additional requirements beyond federal law:
- New York Labor Law: Payroll records must be retained for 6 years (longer than the federal 3-year requirement). Records must include name, address, occupation, hours worked, and wages paid.
- New York Human Rights Law: Records relevant to potential discrimination claims should be retained for at least 3 years post-termination.
- New York Workers’ Compensation: Maintain injury and workers’ comp records for at least 5 years.
- New York City Human Rights Law: For NYC employers, the broadly protective NYCHRL supports retaining records for longer periods given the more expansive employee protections.
How to Securely Shred Employee Records
Once employee records have satisfied their retention requirements, they must be securely destroyed. This is especially important for personnel files because they contain some of the most sensitive personal information your organization holds.
- Do not recycle: Personnel records should never go into recycling bins, regardless of content. Even a resume with just a name and address can facilitate identity theft.
- Use professional shredding services: Industrial cross-cut shredding renders documents completely unrecoverable. Office shredders are inadequate for the volume and sensitivity of HR records.
- Obtain a Certificate of Destruction: This documents that records were properly destroyed on a specific date — important protection if ever questioned about document disposal during litigation or a regulatory inquiry.
- Shred complete files: When destroying employee records, don’t cherry-pick individual pages. Shred the complete file to avoid the risk of leaving sensitive fragments.
- Schedule regular HR record purges: Establish an annual review process where HR identifies records that have exceeded retention requirements and schedules them for destruction.
See our services page for HR-specific shredding programs, and contact us for a free consultation.
Why New York Businesses Choose New York Shredding
For over a decade, New York Shredding Document Destruction, Inc. has helped businesses across New York City, Long Island, Westchester, and the Hudson Valley protect their sensitive information through certified, HIPAA-compliant shredding services. Our industrial-grade shredding equipment, locked on-site consoles, and Certificate of Destruction give your business the proof it needs for any compliance audit.
Whether you need scheduled shredding, a one-time purge, or hard drive destruction, we serve all five boroughs and surrounding areas with fast, reliable service. Request a free quote today and get your office on a shredding schedule that keeps you protected year-round.
Ready to get started? Contact New York Shredding for a free quote, or explore our full range of shredding services.