HR departments are responsible for managing a massive amount of sensitive employee data—résumés, disciplinary records, payroll details, health information, and more. But holding on to these documents too long can pose just as much risk as disposing of them too soon.
Failing to follow HR document retention laws or securely dispose of outdated files can lead to compliance violations, data breaches, and costly legal issues.
In this guide, we’ll explain how shredding outdated HR records is not just good housekeeping, it’s a critical step in reducing liability, protecting employee privacy, and staying compliant with employment regulations.
1. Why You Can’t Keep Everything Forever
It might feel safer to keep every document “just in case,” but indefinite retention creates unnecessary risk. Here’s why:
- Legal Exposure: Outdated records can be subpoenaed and used in legal disputes, even if they are no longer relevant.
- Privacy Risk: Retaining personally identifiable information (PII) past required periods increases the chance of a data breach.
- Non-Compliance: HR data is governed by a patchwork of laws, such as the Fair Labor Standards Act (FLSA), ADA, COBRA, EEOC, and HIPAA. Each has specific retention timelines.
Holding onto records past their retention schedule can violate these laws, especially if you haven’t properly secured or disposed of them.
2. HR Records You Should Be Shredding (After the Right Time)
Below are some examples of common HR documents and their typical retention periods. Once that time is up, they should be securely shredded:
| Document Type | Retention Period |
| Job applications (non-hires) | 1 year (EEOC) |
| Employee personnel files (post-termination) | 3–7 years (varies by state) |
| Payroll records | 3–4 years (IRS/FLSA) |
| I-9 Forms | 3 years from hire or 1 year after termination (whichever is later) |
| Benefits and COBRA documents | 6 years (ERISA) |
| Workplace injury reports (OSHA) | 5 years |
Important: These timeframes are general guidelines. You should always consult your legal team or HR compliance specialist for jurisdiction-specific rules.
3. How Shredding Helps You Stay Compliant
Shredding outdated HR records isn’t just about decluttering, it’s a proactive risk management strategy.
- Meet Legal Obligations: Timely disposal ensures you don’t accidentally violate labor laws.
- Protect Employee Privacy: Secure destruction of records protects sensitive information like SSNs, health data, and financial details.
- Support Data Minimization: Following data minimization principles under laws like GDPR and CCPA strengthens your overall compliance posture.
- Simplify Audits: Auditors love clean, well-managed files. Outdated records create confusion and liability.
4. Why Office Shredders Aren’t Enough
Many HR teams rely on in-office shredders, but this introduces several risks:
- Incomplete destruction: Strip-cut shredders don’t meet most compliance standards.
- Human error: Relying on staff to remember what and when to shred increases mistakes.
- No audit trail: Without a Certificate of Destruction, you have no proof the records were properly destroyed.
A professional document shredding service ensures compliant, verifiable destruction, with minimal effort from your team.
5. How to Build a Compliant HR Shredding Policy
To avoid legal trouble, HR departments should have a formal shredding and retention policy. Here’s what to include:
- Retention Schedules: Based on federal and state laws.
- Document Categorization: Know what’s considered sensitive.
- Chain of Custody: Ensure secure handling and transport of records.
- Certificate of Destruction: Always request one for your records.
- Employee Training: Make sure staff know what documents to retain and when to dispose.
Pro tip: Partner with a shredding provider who specializes in HR and legal compliance.
HR departments sit on a treasure trove of sensitive data, and with that comes serious responsibility. Shredding outdated HR records according to a proper retention schedule is one of the simplest, most effective ways to reduce legal exposure and demonstrate compliance.
Don’t wait until an audit or breach to take action. Build a secure document destruction policy now and work with a certified shredding provider to protect your business and your employees.
