Human Resource Blog

North Dakota Employee Files

Can a North Dakota employee’s confidential information be kept in a separate folder within the personnel file, or does it need to be kept in a different file cabinet?

The state of North Dakota, as well as all other states in America, requires that an employee’s confidential medical records be held in files that are kept separate from other employee files. This personnel information includes payroll and personnel information.

The Health Insurance Portability and Accountability Act, or HIPAA, as well as the federal Americans with Disabilities Act, both make these requirements of all employers.

To be sure that managers and supervisors do not make biased decisions about employees, it is best to keep confidential files completely separate from personnel files. After all, managers and supervisors have to make decisions about job assignments, raises, and promotions, among other things, so it only makes sense that they should have to make those decisions without having any confidential information influencing them.

Confidential files should be kept in a locked file cabinet, separate from other employee files. The only time anyone should look at these types of files is if that individual has a legitimate need to know medical or other confidential information.

Some companies have tried placing confidential information in separate folders, but then placing those folders in each employee’s personnel files. Even if a company kept them in different drawers of the same filing cabinet, it would still defeat the logic in keeping confidential files. The reason? Anyone who had access to personnel files would also have access to the confidential files.

Doing so, of course, opens companies up to being accused of illegal discrimination practices of one form or another. To avoid this, some companies have chosen to keep a variety of information in each employee’s confidential files. Some different types of information that might be found there include reference checks, credit reports, and test scores.

To make sure that companies are in compliance, it is recommended that they always have three different sets of employee files: Confidential Files, I-9 Files, and Personnel Files. JH