In our previous post, we discussed the importance of maintaining accurate employee files. A myriad of state and federal agencies govern the maintenance of employee files, often with overlapping or contradictory requirements. In this post we will focus on employee benefit and health information.
Employee Benefits Data
The Employee Retirement Income Security Act, or ERISA, governs retirement and other employee benefits, and requires employers to keep records relevant to these benefit plans. For example, employers must keep all records supporting the data in summary plan descriptions, or SPDs. In addition, employers must retain annual reports for all benefits plans, including pension reports. Records should generally be retained for six years under ERISA, although records needed to determine eligibility for benefits should be kept as long as relevant.
The following documents must be kept for SIX years:
- Cobra notices
- Summary plan descriptions and earnings
- Beneficiary designations
- ERISA
The Family and Medical Leave Act
The Family and Medical Leave Act, or FMLA, allows eligible employees up to 12 weeks of unpaid leave in a 12-month period for qualifying medical and family reasons. FMLA has several recordkeeping requirements. FMLA can present an interesting scenario where we have files crossing over. If an employee requests reasonable accommodations or leave under the FMLA or CFRA regulations, documentation of that request should go in the personnel files. However, anything revealing specifics regarding the need must be kept separate in the employee health records. For example: if an individual has been absent due to an illness for 4 days and is returns to work, it is not uncommon to require a physician’s release. If the doctor’s note simply states “this individual is released to return to work with no restrictions” it can go into the personnel file. If however, it includes any diagnosis or indication of the medical health of the individual, it must go into the medical or health files.
As stated, employee medical or health records must be kept separately and confidentially in compliance with the requirements of the Americans with Disabilities Act for a period of FOUR years. Records may be kept on computer as long as they are available for transcription or copying
- FMLA/CFRA
- General documentation of requests go to personnel files
- Specifics of medical need and reasons for requests including diagnosis should go to employee medical or health file
In our next post on the topic of record keeping, we will cover the complicated scenario of overlapping documentation requirements.