Is this legal?

What is the name of your state? Kansas
Recently my boss suspended an employee and the employee refused to sign the suspension notice. Our handbook states that if an employee refuses to sign, a supervisor or another manager will be called in to witness the employee's refusal. There were no witnesses and nobody was called in to witness the employee's refusal to sign. The employee has since left our company but requested a copy of this suspension form. When I pulled it from the file, there is a second signature of another manager as a witness but she did not witness...she was not there at all. Also, she signed and dated the form the day after the suspension took place. Isn't this falsifying the document? How can we legally have this in the employee's file? Can't we get into some kind of trouble on this one?

There are no laws that dictate what an employer may place in a personnel file or even that an employer has personnel files. Consequently, there is nothing that prohibits an employer from putting a falsified document in a file. The trouble that can ensue is if some subsequent legal action takes place (ex: an employee files a discrimination complaint) and the employer presents those documents as evidence in their defense. Opposing counsel or the investigating agency could easily take issue with the documents and the employer can end up looking like a bunch of idiots - and liars as well which doesn't exactly strengthen their presumed response of "we're innocent of the allegations."

So, no, the employer hasn't broken any laws but for obvious reasons, putting falsified documents in a personnel file is pretty dumb.

I know our company is fighting the employee getting unemployment benefits and they have appealed and brought up the matter of the second signature and said they know it is falsifying a document.