How long should employee records be kept?

Employee Record Retention Requirements in California

Maintaining accurate employee records is essential for compliance and operational efficiency in California. Proper recordkeeping supports payroll accuracy, tax reporting, and labor law compliance.

How Long to Keep Employee Records

• Payroll Records: Keep payroll records, including timecards, wage rate tables, and pay statements, for at least 3 years.
• Personnel Records: Retain personnel files such as hiring documents, performance reviews, and disciplinary actions for a minimum of 3 years after termination.
• Tax Records: Maintain employment tax records, including IRS forms and state tax filings, for at least 4 years.
• Workers’ Compensation Records: Keep records related to workplace injuries and claims for 5 years after the claim is closed.
• Employee Benefit Records: Retain documents related to health insurance, retirement plans, and other benefits for 6 years.

Operational Tips for Managing Employee Records

• Use secure digital storage: Implement automated systems to store and back up records securely, reducing physical storage needs.
• Ensure confidentiality: Limit access to sensitive employee information to authorized personnel only.
• Regular audits: Periodically review records to ensure compliance with retention schedules and remove outdated files.
• Stay updated: As of 2026, verify retention requirements regularly, as regulatory changes may affect recordkeeping timelines.