From the Experts: How to Decide When to Keep Record in Personnel File or Store It Apart

For California employers, what should go in an employee’s personnel file, and what should be stored separately?

In California, the law doesn’t give employers a single “required contents” checklist for a personnel file. Labor Code Section 1198.5 focuses on the “personnel records” an employee can inspect later, which are records related to the employee’s performance or any grievance.

With that in mind, most employers use the personnel file to store employment documents such as:

• Any application, resume, offer letter and/or signed acknowledgments;
• Job/position or pay-rate change notices;
• Performance evaluations;
• Attendance records (without medical information); and
• Formal documentation of acclamation, coaching, discipline and separation.

Grievance-related materials also are commonly kept in an employee’s personnel file, at least to the extent they reflect the complaint and outcome.

New Requirement

Now, as of January 1, 2026, employers are required to store education and training records in employees’ personnel files. The law requires those records contain specific details (for example, employee name, trainer/provider name, date and duration, competencies covered, and any certification/qualification).

Although personnel files are a great place to store most employment-related documents for each employee, some records should be stored outside the personnel file because they are confidential or sensitive.

Store Separately

California law mandates that employers establish appropriate procedures to ensure all employee medical records and information will remain confidential and will be protected from unauthorized use and disclosure.

A practical approach is to maintain a confidential medical file for accommodation documentation, work restrictions, doctor’s notes, medical leave forms and similar materials, as well as to keep other highly sensitive documents in a separate confidential file (for example, confidential workplace investigation documents or wage garnishments).

Form I-9 records also should be stored in a safe, secure location separate from an employee’s personnel file to facilitate an inspection request and limit unnecessary exposure of sensitive documents.

In addition, effective January 1, 2026, California employers now are required to collect and store demographic information gathered for pay data reporting separately from employees’ personnel records.

Who Has Access

What is included in the personnel file may depend on who has access. Many employers maintain more than one file; for example, a supervisor file with performance-related documents and attendance records (excluding medical information), and an HR-only file that contains payroll-related documents and other sensitive materials such as wage garnishments or certain investigation records.

If only HR has access to the full file, the employer may be comfortable keeping a broader range of documents together, as long as confidential and legally protected records remain segregated.

However records are kept, it is important to bear in mind that information related to an employee’s employment with you is subject to privacy rules and should be kept secured with access allowed only to those who have a need to know the information contained in those records.

Finally, keep in mind that an employee (or former employee) can request to inspect or receive a copy of personnel records relating to performance or a grievance, and you generally must comply within 30 calendar days of a written request. This means that these records should be easily accessible and reproducible to respond to such a request.

Vanessa M. Greene, J.D., Employment Law Counsel, CalChamber

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