Our corporate clients often ask us what type of employment records they need to keep and for how long those records should be maintained. The following information is intended to address the above-mentioned questions. It should be noted that this post is limited to the Illinois employment laws and does not substitute, or intend to be construed as, a legal advice.
Each employer shall maintain existing records with respect to employment and shall preserve such records for at least five years after they have been made, provided that if a determination and assessment of contributions, interest and penalties is made, records pertaining to the period or periods covered by such determination and assessment shall be preserved until the determination and assessment or action has become final, or has been cancelled or withdrawn. (Ill. Rev. Stat. 1985, ch. 48, par. 631)
Generally, each employer shall maintain and preserve the following records (this list is not all-inclusive and will vary depending on the employer’s circumstances and industry):
1) For each pay period:
A) The beginning and ending dates for such period; and
B) The total amount of wages for employment paid in such pay period.
2) For each employee:
A) His or her name and Social Security account number, and address;
B) The dates on which he or she performed any service in employment;
C) The place of his or her employment;
D) His or her wages paid for each pay period, and the date such wages were paid, showing separately:
i) Money wages;
ii) Reasonable cash value of remuneration paid by the employing unit in any medium other than cash as determined in accordance with the provisions of 56 Ill. Adm. Code 2730.100;
iii) Amount of gratuities (tips) received in the course of employment from persons other than the employer as determined in accordance with the provisions of 56 Ill. Adm. Code 2730.105; and
iv) Special payments for employment. Records under this heading include the amount of any special payments such as bonuses, gifts, etc., paid during the pay period but which relate to employment in a prior period. Payments are regarded as special payments if: the amount thereof was not determinable; or, the person or persons to whom paid was not ascertainable at the end of the pay period or periods during which the services were performed. The date must be shown separately as to: money payments; other remunerations; the nature of such payments; and, if such special payments were made for services performed during some period, the period during which such services were performed.
E) His or her wage rate and scheduled or customary working hours according to the following classifications:
i) Salaried workers, including the salary rate and the pay period covered by the rate;
ii) Fixed daily wage workers, including the daily rate of pay, the actual number of days worked, and the full number of scheduled or customary working days per week in the employment in which he is engaged;
iii) Fixed hourly workers, including his hourly rate, the actual number of hours worked, and the full number of scheduled or customary working hours, if any, per week in the employment in which he is engaged; and
iv) Piece rate workers, including the actual number of hours worked during each week, and the full number of scheduled or customary working hours, if any, per week in the employment in which he is engaged.
F) The date on which he or she was hired, rehired, or went to work after temporary layoff, and the date he was separated from employment.
There may be other employment records that should be retained, such as the investigation notes, complaints, performance improvement plans, and performance evaluations. Such records will be important to defend against any potential employment-related disputes.
Should you have any questions regarding the above-mentioned issues or other employment-related matters, please contact us today.
This article is intended to serve as a general summary of the issues outlined therein. While this article may include general guidance, it is not intended as, nor is it a substitute for, a qualified legal advice. Your receipt of this article from Lexern Law Group, Ltd. (the “LLG”) or any of its attorneys does not create an attorney-client relationship between you and the LLG. The opinions expressed in this articles are those of the authors of the article and does not reflect the opinion of the LLG.