What Employers Should Know About Creating and Keeping Personnel Files

 Posted on July 17, 2026 in Employment Law

As an employer, you probably keep more information on each worker than you realize. Your personnel files likely include everything from job applications to complaints. These files are often the first thing a court or agency looks at when a former employee brings a claim against you, so knowing what belongs in each file and how long you must keep it can protect your business down the road. If you have questions about your recordkeeping practices in 2026, a Schaumburg employment lawyer can answer them and ensure your records are right.

What Should Go Into An Employee's Personnel File?

You'll want to keep several kinds of records for each worker you employ. These often include:

• Job applications, resumes, and offer letters
• Performance reviews and write-ups
• Attendance and time-off records
• Pay history, tax forms, and benefit choices
• Training records and licenses

You should keep some information apart from the main file on purpose. Medical records, for example, need to be stored separately. This helps you follow privacy rules under the Americans with Disabilities Act. Harassment complaints should also be kept private, with access limited to as few people as possible.

What Records Must You Keep As An Illinois Employer?

You can't handle personnel files however you see fit. The Illinois Personnel Record Review Act (820 ILCS 40/) gives your employees rights over their own employment records, and you have to follow it no matter how big or small your company is.

Federal law adds more requirements. Title VII of the Civil Rights Act of 1964 says you must keep personnel records for at least one year. The clock starts from the date the record was made, or the date of a job action, whichever comes later. If an employee files a discrimination charge against you, you have to keep those records until the case is fully over.

How Long Do You Have To Keep Your Employees’ Personnel Records?

How long you must keep a record depends on what kind of record it is. Pay records fall under the Wages and Fair Labor Standards Act, which requires you to keep wage records for at least three years. Time cards and other records used to calculate pay must be kept for at least two years.

Title VII generally requires covered employers to retain personnel and employment records for one year, but if a discrimination charge is filed, the records must be kept until the matter is finally resolved. You may want to keep files even longer than the law requires, since old records can become important evidence years after an employee leaves.

Do Your Employees Have The Right To See Their Own Personnel File?

According to Illinois law, your current and former employees can inspect their own personnel file, usually up to two times each year. If an employee disagrees with something in the file, like a write-up they think is unfair, they can submit their own written statement about it. You're required to keep that statement attached to the record. Ignoring this right, or slowing it down without a good reason, can create problems for you later, especially if the employee later claims you retaliated against them for asking.

What Happens When Your Personnel Records Are Missing Or Incomplete?

In real disputes, missing records rarely work in your favor. Courts and agencies, including those handling claims in Cook County, often view missing or messy files with suspicion. If you claim you fired someone for poor performance but your file has no earlier warnings, that gap can undercut your explanation. Keeping thorough, consistent files gives you a much stronger position if a former employee later challenges a termination or files a discrimination claim.

What Mistakes Do Employers Commonly Make With Personnel Files?

Some common mistakes to avoid include:

• Failing to document verbal warnings before a firing
• Mixing medical papers into an employee's general file
• Ignoring an employee's written response to a write-up
• Disposing of records before the law allows it
• Applying file-review policies inconsistently across employees

Any one of these mistakes can become a serious problem if a termination or discrimination claim gets challenged later.

Schedule a Free Consultation With Our Schaumburg, IL Record Keeping Employer Defense Attorney

If you have questions about how long to keep personnel records, how to respond to an employee's request to review a file, or how to build stronger documentation practices at your company, you don't have to sort it out on your own. Attorney Richard J. Miller holds both a law degree and an MBA in finance. That combination gives him a practical view of how personnel decisions connect to a company's payroll, budget, and overall risk, not just its legal exposure. That perspective often helps employers build recordkeeping practices that hold up when it matters most.

To learn more, contact The Miller Law Firm, P.C. at 847-995-1205 to talk to our Schaumburg employment lawyer today.