Compliance Guide

Records Retention Policy Best Practices

A comprehensive guide to creating and implementing effective records retention policies that ensure compliance and optimize document management.

12 min read
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In today's data-driven business environment, managing the lifecycle of documents and records is more critical than ever. A well-designed records retention policy not only ensures regulatory compliance but also reduces storage costs, mitigates legal risks, and improves operational efficiency.

Why Retention Policies Matter

Legal Compliance

Meet regulatory requirements and avoid penalties by maintaining records for mandated periods.

Cost Reduction

Eliminate unnecessary storage costs by disposing of records that have met retention requirements.

Risk Mitigation

Reduce litigation risks by properly managing document destruction and preservation.

Key Components of a Retention Policy

Financial Records
7 years
Tax requirements, audit trails
Invoices
Tax returns
Bank statements
Payroll records
Employee Records
7 years after termination
Employment law, EEOC requirements
Personnel files
Performance reviews
Timesheets
Benefits
Legal Documents
Permanent
Litigation hold, regulatory compliance
Contracts
Litigation files
Patents
Corporate records
Medical Records
10 years (adult), 25 years (minor)
HIPAA, state regulations
Patient records
Lab results
Insurance claims
Consent forms

Implementation Steps

1

Conduct Records Inventory

Identify all record types and their current locations

  • Document all record categories
  • Map storage locations
  • Identify record owners
2

Research Legal Requirements

Understand federal, state, and industry regulations

  • Review applicable laws
  • Consult legal counsel
  • Document requirements
3

Create Retention Schedule

Define retention periods for each record type

  • Set retention periods
  • Define trigger events
  • Include disposal methods
4

Implement and Train

Roll out policy and train staff

  • Deploy technology
  • Train employees
  • Monitor compliance

Common Mistakes to Avoid

Many organizations struggle with records retention due to preventable mistakes. Understanding these common pitfalls helps you create a more effective policy from the start.

One-Size-Fits-All Approach

Applying the same retention period across all document types ignores legal requirements and business needs. Different records require different retention schedules based on regulatory mandates and operational value.

Neglecting Regular Updates

Laws and regulations change frequently. Failing to review and update retention policies annually can leave your organization non-compliant and exposed to legal risks.

Inadequate Training

Even the best policy fails if employees don't understand it. Insufficient training leads to improper document disposal, retention of unnecessary records, and compliance violations.

No Legal Hold Process

Without clear procedures for legal holds, organizations risk destroying documents that should be preserved for litigation, investigations, or audits. This can result in serious legal consequences and sanctions.

Best Practices

Legal Hold Procedures

Implement clear procedures for legal holds that override standard retention schedules when litigation is anticipated or pending.

Download Legal Hold Template

Regular Policy Reviews

Review and update policies annually to reflect changes in regulations and business practices.

Employee Training

Conduct regular training sessions to ensure all staff understand and follow retention policies.

Automated Enforcement

Use technology to automate retention and disposal processes wherever possible.

Technology Solutions

How Ademero Can Help

Ademero's document management platform includes built-in retention policy management features that automate the entire lifecycle:

Automated retention scheduling
Disposition alerts and notifications
Legal hold management
Compliance reporting and audit trails
Learn More About Our Solution

Regulatory Resources & Further Reading

Understanding records retention requirements requires familiarity with various federal and state regulations. These authoritative resources provide comprehensive guidance on legal requirements and industry best practices.

NARA Records Management Resources

The National Archives and Records Administration provides federal guidance on records management, retention schedules, and disposition authorities. Their resources cover both paper and electronic records management requirements for government agencies and contractors.

Visit NARA Records Management

ARMA International Standards

ARMA International is the leading association for information governance professionals. Their Generally Accepted Recordkeeping Principles provide a framework for developing comprehensive retention policies that meet legal, regulatory, and operational requirements.

Learn about GARP Principles

Industry-Specific Regulations

Healthcare organizations must comply with HIPAA retention requirements, financial institutions follow SEC and FINRA rules, and government contractors adhere to FAR regulations. Consult your industry's regulatory body for specific retention schedules and compliance requirements.

HIPAA Privacy Guidance (Example)

Sarah Chen

Compliance Director

15+ years in records management and compliance

Ready to Implement Better Retention Policies?

See how Ademero can automate your records retention and ensure compliance.