What to Do When Your Company’s HR Records Have Been Destroyed

A step-by-step guide for rebuilding when you’ve lost everything, or preparing before another disaster strikes.

The Maui wildfires devastated local companies, and for entrepreneurs and businesses that lost everything, rebuilding can be overwhelming. Here’s what owners and HR departments should know before and after disaster strikes.

As a general rule, always safeguard vital records, including accounting and staff data and customer and inventory lists, by storing them in the cloud with a trusted service. Alternatively, create backups of essential files, ensuring they’re also uploaded to the cloud for easy access if you cannot reach the office.

Here is a brief guide on reconstructing essential HR files and continuing employer responsibilities during this difficult period.

Essential HR Files to Reconstruct

1. Form I-9, Employment Eligibility Verification: This form is mandatory for every employee. Lost or damaged forms must be replaced as quickly as possible. If files are lost, reverification must be done for each affected employee. Learn more at tinyurl.com/FormsI9.
2. W-4 Forms: Employees need to complete this form to determine tax withholding. More information at tinyurl.com/FormsW4 and tinyurl.com/StateHW4.
3. Employee Contracts and Agreements: Consult with employees to obtain backup copies of contracts and agreements. If no backup exists, consult legal counsel to help reconstruct the documents. Payroll records, tax submissions and other financial documents (if they exist) can provide details like employee compensation, job titles and length of employment, which may be helpful when reconstructing contracts.
4. Payroll Records: Essential for determining employee payment and benefits. Include all pay stubs, time sheets and related documents in your backup files. Victims of the wildfires have until Feb. 15, 2024, to file various individual and business tax returns and make tax payments. Learn more at tinyurl.com/IRSwildfires.
5. Benefit and Insurance Documents: Vital for continuing benefits like health insurance, retirement plans and other employee benefits. Where to get more information: Check with your insurance carriers and benefits plan administrators and visit tinyurl.com/ReliefInfoGov.

Employer Responsibilities

1. Paying Employees on Time: Even if catastrophes happen, the Fair Labor Standards Act and Hawai‘i wage and hour law require payment of at least the full minimum wage and overtime compensation due to a covered employee for hours worked. If employers anticipate paychecks being delayed because of a disaster, they should contact the Department of Labor’s Wage and Hour Division and the Hawai‘i Wage Standards Division for guidance. Learn more at the Wage and Hour Division’s fact sheet on disasters: tinyurl.com/DisasterFacts.
2. Layoffs and Unemployment Insurance: If layoffs are necessary, employers must provide terminated employees with information on how to apply for unemployment benefits. Learn more at labor.hawaii.gov/blog/mauiwildfires.
3. Health and Safety: Employers must provide a safe working environment. In the context of a disaster and anticipated hazards associated with recovery operations, this might mean remote work or temporary locations. Learn more at osha.gov/wildfires and labor.hawaii.gov/hiosh/home/for-employers.
4. Communications: Maintain a list of 24-hour emergency numbers for all employees and develop a call tree to keep employees informed.

Rebuilding your business after such a devastating event is challenging, but attention to your HR responsibilities is crucial for a smooth transition. Keep the lines of communication open with your employees to keep them informed and connect with government agencies to ensure you meet all legal obligations.

For general guidance on reconstructing business records after a natural disaster, visit the IRS at tinyurl.com/b6f298na. For personalized assistance, consider contacting local employment law experts and the government agencies mentioned above.

Reconstructing files and documents is important, but true rebuilding begins with the people. Be mindful of your employees’ well-being following traumatic events, recognizing that stress and trauma can show up weeks or months later in unpredictable ways. Open discussions about employee wellness and mental health create supportive and safe workplaces where employees are more likely to seek support. Employee assistance programs and behavioral health support are crucial to supporting employees’ long-term well-being.