How to Organize & Maintain Your Restaurant's Employee Files

Have you ever woken up in the morning and thought, "A new day; I cannot wait to get some paperwork done."? Of course you haven't. Paperwork is time-consuming, tedious and a diversion from things you would rather do, or things you need to do.

With that firmly established, there is some paperwork we simply must do to run our restaurants properly. There is no doubt that doing something correctly from the start, and not having to play catch-up later, is the preferable course with most things. Such is the case with employee files and records.

There are several reasons why you should have employee files with a specific set of documents in them. Not the least of which are legal in nature. There is documentation you must keep per IRS (Internal Revenue Service) rules, and other documents you will want to keep if you find yourself embroiled in litigation or the threat of litigation with a current or former employee. About one-third of legal actions against small businesses involve employment liability, such as sexual harassment, and wrongful termination claims.

Additionally, it's simply nice to have everything about each employee in one place so you know where to find it when you need it. If you start with a plan, a place to put your files, and a commitment to the short amount of time it will take to document what you should, you will be glad you did.

The following describes the fundamentals of a solid employee file system, and answers key questions about the compilation and storage of important documents, forms, reports and information.

Why Do You Need an Employee File System?

There are some very good reasons for creating and maintaining employee files, including but not limited to:

1. Being organized means you know where to find things when you need them -- and you will need them.
2. Compiling the necessary personnel documentation will be your defense if and when an employee seeks legal action against you.
3. You will be prepared in the event of a government audit related to tax or immigration issues.
4. Maintaining the applicable documents proves that you, as the employer and business owner, comply with federal and state regulations as they apply to your business and the restaurant industry where defined.
5. You will have the tools and information you need to make decisions and take action in accordance with your established employee policies.

On Whom Should You Keep Files?