The U.S. Equal Employment Opportunity Commission sets a one-year clock for personnel records and a three-year clock for payroll records.
Key takeaways for how long to keep hiring records and payroll records
- Personnel or employment records must be kept for one year according to the U.S. Equal Employment Opportunity Commission.
- Payroll records require a three-year retention period under ADEA recordkeeping requirements, according to the same source.
- Do not treat these two clocks as identical; they apply to different document types with distinct timelines.
- Verify your specific documents against the publisher’s named scope before discarding any files.
- Pull one closed requisition from last year, label each document with the matching clock, and write the earliest discard date.
The one-year personnel clock and the three-year payroll clock
The U.S. Equal Employment Opportunity Commission sets distinct time limits for different types of employment documentation. According to this agency, employers must keep all personnel or employment records for one year. This specific one-year requirement applies broadly to files that track hiring decisions, promotions, transfers, and other personnel actions. It is not a single national date that covers every document in your office; rather, it governs the specific category of personnel records defined by these regulations. If you are holding an application form or an interview note from last year, this one-year rule determines when that particular item can be discarded under federal guidelines.
Payroll documents operate on a separate timeline within the same regulatory framework. The U.S. Equal Employment Opportunity Commission states that under ADEA recordkeeping requirements, employers must also keep all payroll records for three years. This creates a clear distinction between the two piles of paper: personnel files follow the one-year clock, while payroll files follow the three-year clock. You cannot treat them as the same group of documents because the sources assign different durations to each. When deciding whether to shred last year’s pay stubs or direct deposit confirmations, the three-year figure is the relevant standard, not the one-year figure used for hiring notes.
For more detailed legal definitions, the Legal Information Institute provides the precise wording for what constitutes a preserved record. This source specifies that any personnel or employment record made or kept by an employer shall be preserved for a period of one year from the date of the making of the record or the personnel action involved, whichever occurs later. This "whichever occurs later" clause is critical for small staffing teams. If you created an interview scorecard in January but did not make the final hiring decision until March, the one-year clock starts in March, not January. This ensures you retain the file for the full duration required by the regulation, even if the initial paperwork was generated early in the process. The definition includes requests for reasonable accommodation, application forms, and records related to rates of pay or terms of compensation, ensuring that most standard hiring documents fall under this preservation requirement.
To manage this effectively, label each document with its specific clock. An application form belongs to the one-year bucket. A weekly wage sheet belongs to the three-year bucket. Mixing these categories leads to premature disposal of necessary records. Keep the personnel file for the clock that page names, and ensure your payroll archive reflects the longer duration. This separation prevents accidental violations of either retention standard.
What changes after someone is fired or a charge is filed
When an employee leaves involuntarily, the standard retention timeline shifts to a new starting point. The U.S. Equal Employment Opportunity Commission states that if an employee is involuntarily terminated, his/her personnel records must be retained for one year from the date of termination U.S. Equal Employment Opportunity Commission. This specific clock applies to the individual who was let go, not the entire department. The Legal Information Institute confirms this requirement in its text for 29 CFR § 1602.14, noting that in the case of involuntary termination of an employee, the personnel records of the individual terminated shall be kept for a period of one year from the date of termination Legal Information Institute. For your staffing team, this means the discard date for a fired applicant’s file is calculated forward from their last day, not from when they originally applied or started work. You do not need to keep the files of other employees on hold just because one person was terminated; the rule targets the specific personnel records of the individual involved.
A pending discrimination charge creates a different kind of delay. If a charge is not resolved after investigation and the charging party receives a notice of right to sue, the definition of "final disposition" changes U.S. Equal Employment Opportunity Commission. In this scenario, final disposition refers to the date the 90-day statutory period expires, which is the window within which the aggrieved person may bring suit. Alternatively, if the EEOC or the charging party brings the suit, final disposition is the date the litigation terminates, including any appeals. Until that specific legal milestone is reached, you should treat the relevant records as active. The presence of a lawsuit extends the life of those papers beyond the standard one-year mark until the court or agency closes the matter.
The shorter and longer clocks for federal contractors and two states
The federal contractor rule sets a different timeline than the standard personnel clock. According to Legal Information Institute, any personnel or employment record made or kept by the contractor must be preserved for not less than two years from the date of making the record or the personnel action involved, whichever occurs later. This two-year requirement applies to the contractor’s own records as defined in that specific regulation.
However, a smaller contractor faces a shorter retention period under the same source. If the contractor has fewer than 150 employees or does not have a Government contract of at least $150,000, the minimum record retention period is one year from the date of making the record or the personnel action involved, whichever occurs later. Your staffing team should check its current employee count and whether it holds any single Government contract of at least $150,000 to determine which clock applies to its files.
State laws can extend the retention window beyond the federal baseline for employers operating in specific jurisdictions. In Massachusetts, an employer of twenty or more employees must retain the complete personnel record of an employee without deletions or expungement of information. As stated by the Massachusetts General Court, this retention runs from the date of employment to a date three years after the termination of employment by the employee with such employer. This means that for Massachusetts-based roles with twenty or more staff, the file stays active for three years after the employee's own termination of employment with that employer.
South Carolina imposes a distinct requirement specifically for wage documentation. The South Carolina Legislature requires every employer to keep records of names and addresses of all employees and of wages paid each payday and deductions made for three years. This three-year period applies to the specified wage data points listed in the code section. Note that this state rule targets wage records explicitly, while the Massachusetts rule cited above covers the complete personnel record.
Review your payroll export settings to ensure they capture the names, addresses, wages, and deductions required by South Carolina law if you operate there. For Massachusetts employers with twenty or more employees, verify that your HR system flags the three-year post-termination deadline for personnel files rather than relying on the standard one-year personnel clock. Confirm whether your firm qualifies as a smaller contractor under the federal threshold before applying the one-year retention period to government-related hiring documents. Align your document management system labels with these specific jurisdictional requirements to avoid premature deletion of protected records. For more on staff-count thresholds, see hiring laws by staff size.
Reference table of each publisher's retention rule
The table below lists the keep-or-toss clocks printed on each source page. Each row names the publisher and the exact record type that clock applies to, so you can match a document in your file to the correct date before discarding it.
| Publisher | Record Type | Retention Clock | Source URL |
|---|---|---|---|
| U.S. Equal Employment Opportunity Commission | Personnel or employment records | One year | U.S. Equal Employment Opportunity Commission |
| U.S. Equal Employment Opportunity Commission | Payroll records | Three years | U.S. Equal Employment Opportunity Commission |
| U.S. Equal Employment Opportunity Commission | Records explaining pay differences between employees of opposite sexes in the same establishment | At least two years | U.S. Equal Employment Opportunity Commission |
| Legal Information Institute | Payroll or other records | 3 years | Legal Information Institute |
| Legal Information Institute | Personnel or employment record (contractor) | Two years | Legal Information Institute |
| Legal Information Institute | Personnel or employment record (smaller contractor) | One year | Legal Information Institute |
| Massachusetts General Court | Complete personnel record | Three years after the employee's own termination of employment | Massachusetts General Court |
| South Carolina Legislature | Wages paid and deductions made | Three years | South Carolina Legislature |
Use this grid to label the physical or digital files in your current purge batch. The U.S. Equal Employment Opportunity Commission distinguishes between general personnel files and payroll data, assigning different timeframes to each category. For federal contractors, the Legal Information Institute specifies a standard two-year period but includes an exception for smaller operations. State laws add their own layers; the Massachusetts General Court ties the retention window to both the start of employment and three years after the employee's termination, while the South Carolina Legislature focuses specifically on wage payment records. Check which jurisdiction and contract status apply to your team before setting the deletion date.
A worksheet for the next purge date
The length of time you should keep a document depends on the action, expense, or event which the document records, according to Internal Revenue Service. Use the reference table above to match each specific paper in your files to its corresponding retention clock before deciding when it is safe to discard. Use the first column for the exact name of the document as it appears in your filing system. In the second column, write the source that dictates how long that specific item must be retained, such as a federal agency or state labor department. The third column requires the earliest calendar date after which you may remove the file from active storage. This structure ensures every record is evaluated against the correct timeline rather than a single blanket rule. Make one row for every distinct type of document in your current archive. When several retention periods apply, compute the discard date from the longest one and enter that resulting calendar date in the discard-date column. Review this sheet annually to confirm that no expired items remain in your digital or physical storage. Keep the completed worksheet alongside your main records index for easy reference during future recruiting records audits or cleanups. Do not delete any file until the date in the third column has passed and you have confirmed no pending legal matters require longer retention. Start today by choosing one closed requisition from last year and writing its earliest discard date on your sheet.
Record retention FAQ
How long does the EEOC page say to keep a hiring record?
The U.S. Equal Employment Opportunity Commission states that employers must keep all personnel or employment records for one year. This rule applies to standard hiring files and general employment documentation maintained by the employer. The requirement is tied directly to the agency's specific recordkeeping regulations for these documents.
How long for payroll records?
According to the U.S. Equal Employment Opportunity Commission, employers must also keep all payroll records for three years under ADEA requirements. This distinct timeframe separates wage data from other personnel files in your storage system. Ensure you label these documents separately so they do not get shredded with the shorter-term hiring notes.
What if the person was fired?
If an employee is involuntarily terminated, his/her personnel records must be retained for one year from the date of termination. The clock starts on the day the separation occurs rather than the original hire date. Mark this specific date on the file folder to track when the retention period expires.
What is different for a federal contractor with fewer than 150 employees?
The Legal Information Institute notes that if the contractor has fewer than 150 employees or does not have a Government contract of at least $150,000, the minimum record retention period shall be one year. This period runs from the date of the making of the record or the personnel action involved, whichever occurs later. Check your current headcount and contract value before applying this shorter timeline to your files.
How long does South Carolina say to keep wage records?
The South Carolina Legislature requires every employer to keep records of names and addresses of all employees and of wages paid each payday and deductions made for three years. This state-specific rule applies specifically to wage payment documentation within its jurisdiction. Verify whether your staffing team operates under this code before discarding any pay stubs or deduction logs.
Sources
- U.S. Equal Employment Opportunity Commission
- Legal Information Institute
- Legal Information Institute (2)
- Legal Information Institute (3)
- Massachusetts General Court
- South Carolina Legislature
- Internal Revenue Service
- California Employment Development Department
- Washington Employment Security Department