How long should employee records be kept?

Employee Record Retention Requirements in Minnesota

Maintaining proper employee records is essential for compliance and smooth business operations in Minnesota. As of 2026, businesses must retain employee records for specific minimum periods to meet state and federal requirements.

Minimum Retention Periods for Employee Records

• Payroll Records: Keep payroll records, including wage rates, hours worked, and deductions, for at least 3 years. This supports compliance with wage and hour laws and tax reporting.
• Employee Personnel Files: Retain personnel files such as job applications, performance reviews, and disciplinary actions for at least 3 years after employment ends. This helps with potential audits or disputes.
• Tax Documents: Maintain tax-related documents like W-4 forms, tax withholding records, and quarterly tax filings for at least 4 years to comply with IRS and Minnesota Department of Revenue guidelines.
• Employee Benefits Records: Keep records related to benefits, including health insurance and retirement plans, for at least 6 years to meet federal ERISA requirements.
• Workplace Injury and Illness Records: Retain OSHA logs and injury reports for at least 5 years to comply with workplace safety regulations.

Operational Tips for Managing Employee Records

• Implement a Recordkeeping System: Use digital or physical systems to organize and securely store employee records, ensuring easy access and compliance.
• Automate Retention Schedules: Utilize HR software to automate reminders for record review and disposal to avoid unnecessary retention and reduce storage costs.
• Protect Confidential Information: Ensure records are stored securely to protect employee privacy and comply with data protection standards.
• Regular Compliance Reviews: Periodically audit your recordkeeping practices to align with updated Minnesota and federal regulations.