Former company owner wants to keep personnel records -- is this legal?

My daughter works for a laboratory as lab supervisor and the company has been bought out by another company. Actually the new company did not buy the old company they bought their client base and the new company is keeping most of the existing employees. The old owner wants all of the personnel files because she says she needs to keep them, but my daughter needs them because most of them are going to the new company. Does she have to give the files to the old owner?

Rita Risser's Response:

I can understand why the former owner wants to keep the records; she has no idea what could happen to them with the new company, and if she's sued, she wants to make sure she has them. On the other hand, they are official company records, and as such they must stay with the company.

It may be appropriate to give her copies of the personnel records. However, I would only give her copies of records that are clearly job related, such as payroll and performance records, and make sure she does not get copies of any information relating to health or medical issues.

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