Should Employee Files Be Kept Under Lock and Key?

There is no federal or state law that says that employee files must be kept under lock and key, but there are privacy and confidentiality laws in some states regarding employee files.

Whether you're doing business in a state with employee file confidentiality rules or not, it's good HR practice to ensure that employee files are not easily accessible to just any member of your company or anyone visiting your office. Employee files contain lots of private information — medical documents, salary numbers, annual reviews — information you don't want floating around your office. Also, allowing unwarranted access to employment files could lead to charges of discrimination or privacy violations.

Similarly, if you keep your employee files in electronic form, you want to take steps so they're stored securely and not available to anyone surfing your company intranet.