What makes recordkeeping programs a necessary evil? For more information on the different files to shred and the shelf life before shredding, see this infographic. Most records managers (and lawyers) appear to have difficulty determining the legal requirements for records (1) if the law requires the record to be retained but does not specify a specific retention period, or (2) if no legal retention requirement has been identified for a particular record, especially after extensive research. According to the Federal Red Tape Reduction in the Interpretation and Implementation by Regulations Act published by the Office of Management and Budget, there appears to be a presumption that no records required by federal regulations (not legislation) should be retained for more than three years. unless the federal agency concerned has specified (and justified) a longer retention period. Under the record-keeping requirements of the EPA`s Fair Labor Standards Act (FLSA), employers must retain payslips for at least three years. In addition, employers must keep for at least two years all records (including rates of pay, job evaluations, seniority and benefit systems, and collective agreements) explaining the basis for paying different wages to workers of different sexes in the same establishment. [The reader should note that in addition to legal requirements (as explained in this article), a records retention plan must also consider operational (user), tax/audit, and historical requirements related to the records.] (d) The Federal Procurement Authority requires recipients to surrender certain documents to its custody if it determines that the documents have long-term storage value. However, in order to avoid duplicate records, a federal contracting authority may arrange for recipients to retain records that are continually necessary for shared use. Once records have passed their retention period, they must be shredded and destroyed. If you want to experience shredding for yourself, mobile shredding is a good option, while off-site shredding is also available for large projects.
Any employer covered by the Fair Labour Standards Act (FLSA) must keep certain records for each insured and non-exempt employee. There is no form required for files, but files must contain accurate information about the employee and data on hours worked and wages earned. Below is a list of basic records that an employer must keep: Why should I keep records? Good records help you monitor your business` progress, prepare your financial statements, identify sources of income, track deductible expenses, track your real estate base, prepare your tax returns, and support items reported on your tax returns. In addition to improper storage of customer information, they also shredded or destroyed records before required retention periods, resulting in a swift legal penalty for premature disposal. Here is a reference for specific information on the different types of records to be kept and how long they should be kept. (3) When transmitting or storing documents to the Federal Public Procurement Authority, the 3-year retention obligation does not apply to the addressee. Offsite facilities store records in secure, air-conditioned areas with firefighting systems to ensure all threats are covered. Organizing your physical and cloud-based storage as well as developing a DRP is the best way to ensure your business meets record-keeping standards. Read all policies carefully and create a plan that is easy to implement and adhere to. 1. If a dispute, complaint or audit is initiated before the expiry of the 3-year period, the records shall be retained until any dispute, claim or audit finding relating to the records has been resolved and final action has been taken.
Therefore, given that it is virtually impossible to find all legal requirements and it is reasonable to expect that there will be no legal requirements for certain types of records, how should the document manager determine the retention period for records for which no legal requirement has been found? First, the case manager, in coordination with legal counsel, could determine that there is no legal obligation to retain records because there is no requirement for record keeping.