Electronic employee records are everywhere, whether we like it or not. Laptops, phones, servers, and even employee personal electronic devices may contain company-related information. The number of ways we have to create and store documents seems to grow by the minute.
How can an employer keep track of it all? And is there still an argument for making hard copies of anything in this digital age? Whether you go all digital, or keep a room full of file cabinets, it’s crucial to have policies in place to control how you retain and manage electronic employee records—they exist whether we want them to or not. Know what pros and cons you’re facing either way.
Is it Legal to Have Fully Electronic Employee Records?
Some employers are now asking whether they can ditch the old-school filing drawers entirely and switch to electronic employee records. In fact, it’s already happening piece by piece because virtually every employer already keeps at least some electronic records. But can you really keep everything electronically?
“Employers have legal recordkeeping obligations – no matter how small or how large your organization is in terms of your employee headcount.” Allen Kato reminded us in a recent BLR webinar. But most laws and agencies allow employers to keep e-records in lieu of paper. However, employers should still check for local laws that have not been updated—and thus still require a hardcopy.
When electronic copies are allowed, most laws/agencies require that e-records must be accessible and readable for employee or agency inspection. As such, be sure to avoid things like long backup processes or other impediments that may delay the retrieval of such documents. It’s also advisable to store them in a way that is searchable, to allow individual files to be easily found.
“The electronic records, if you’re going to go that route, need to be in some format that they cannot be altered, and are kept in their original state.” Kato advised.
Pros and Cons of Electronic Employee Records?
Should you go paperless? Is it worth the effort? Here are some pros and cons.
The Pros:
- It reduces the need for physical storage space at the employer’s office and also reduces the need for staff to create, file, locate and update hardcopy records.
- It allows for better organization and easier accessibility of important files.
- You can retrieve documents instantly.
- Multiple people can view the same document from different locations at the same time.
- Going “green” may be deemed a political necessity and just good business. (Save the trees!)
The Cons:
- The privacy rights of employees will be at risk if a security breach allows access to private information. (This could result in legal violations, such as identity theft).
- There are upfront costs of labor, equipment, and system infrastructure to create and store the electronic files.
- Extra steps are required (as compared to hard copy records) when electronic employee records are submitted in legal proceedings, such as verification of an electronic signature, for example.
- Electronic records are everywhere – employee computers, HR computers, phones, portable storage devices, cloud storage, text messages, etc. This means they’re more easily lost or stolen because there is little security on portable devices.
- The use of personal cloud storage means that any individual can put documents there, further risking the security of company data.
- Electronic files are easily spread via social media as well. Yet another form of risk.
For more information on electronic employee records, order the webinar recording of “Electronic Recordkeeping: What to Save, What to Delete, and Everything In-Between.” To register for a future webinar, visit http://store.blr.com/events/webinars.
Allen Kato is an attorney in the Employment Practices Group of Fenwick & West LLP in San Francisco. His practice concentrates exclusively on representing management in equal employment opportunity, wage and hour, wrongful termination, privacy, unfair competition, and trade secret matters, and litigating individual and class action lawsuits before courts and agencies.