Q. "Who should have access to employee files?"
Answer:
Whoever does HR in your ministry will obviously need access, since they're responsible for updating employee information and making sure everything is compliant with employment laws. Many states also grant employees the right to view their own personnel files. Other roles in your ministry may need access from time to time, but that access should be limited to the following:
Managers who might need to look at things like performance reviews, disciplinary actions, or salary history.
Payroll and benefits administrators who will need access to handle pay, taxes, and benefits enrollment.
Legal counsel who may need access in the event of legal disputes, compliance audits, or investigations.
No one else should have access, and even for those who do, they should only be reviewing the files, or parts of the file, they need to see. Having separate folders within a file for certain sensitive information (i.e., medical documentation or I-9s) will help ensure a manager reviewing a personnel file for performance review scores doesn't stumble into information about an employee's disability or other protected characteristics.
For all employee files, stored them securely in locked cabinets (for paper files) or with restricted access (for electronic ones).