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How long should you keep employment records?

Posted in Frequently Asked Questions on 05/01/2010

Clients have asked us how long do they need to keep the background screening reports that we supply to them.  According to the Fair Credit Reporting Act (FCRA) Section 618, the statute of limitations states that employees may bring a claim not later than the earlier of: (1) two years after the individual discovers the basis for liability; or (2) five years after the date on which the violation occurs.

In general the reports should be kept for five years; however, there are also other state and federal laws that may apply due to industry regulations.  Regardless of how long you do keep these files, since they do contain personally identifiable information (PII), be sure that they are kept in a secure file.

For more information on this topic or other questions, contact BackTrack at 800-991-9694.