Question: We just updated our employee handbook and distributed it to employees. Is there any reason to retain the prior version?
Answer: Yes! HR should save a copy of every handbook or policy that is distributed to employees and clearly note the effective dates of each version. The company may be required to produce this evidence to defend itself against legal claims based on conduct that occurred when the prior policies were in effect. The company cannot retroactively apply current policies to defend past employment decisions or conduct. All employers should have a system for retaining copies of prior handbooks, policies, standard operating procedures, collective bargaining agreements, etc., so if a question arises as to what version was in place at the time of a particular employment action, you can produce the right document. It is okay to store these types of employment records electronically. For a comprehensive chart outlining the federal and state law retention rules that apply to certain employment-related records, see our Legal Guide, Record Retention.
