Protect Your Business from OneDrive File Access Disruptions After Employee Offboarding

How Managed IT Services Can Help You Avoid Unexpected Costs and Workflow Interruptions

At Louisville Geek, we work closely with business owners like you to keep your IT environment secure, efficient, and aligned with evolving technology policies. A recent Microsoft change to OneDrive licensing rules, effective in 2024, is creating challenges around employee offboarding, and it could be costing your company more than you realize.

If your business currently offboards employees by simply sharing a OneDrive link to their files, this approach could soon lead to lost access, workflow interruptions, or unexpected licensing fees. In this post, we’ll explain what’s changing with Microsoft’s OneDrive policy, how it affects your business, and the options your managed IT partner can help you implement to protect your data and operations.

Partnering with a local managed IT services provider gives you access to experts who not only stay current with Microsoft policy updates, but also help you adapt quickly before your business is impacted. Whether you are evaluating cloud storage policies, modernizing your offboarding process, or reassessing your data retention strategies, having the right IT team in your corner makes all the difference. If you’re searching for managed IT services, Louisville Geek brings the local expertise and enterprise-level support you need to stay ahead.

What Business Owners Should Know About Microsoft’s OneDrive Enforcement

Microsoft now enforces a strict policy on unlicensed OneDrive accounts, which is defined as accounts that belong to employees whose Microsoft 365 licenses have been removed. After 93 days without a license, these accounts are archived, limiting file access and editing capabilities.

Many businesses are caught off guard because the common offboarding practice of sharing a former employee’s OneDrive files via a link doesn’t protect against this policy. When enforcement hits, those shared links may stop working, or files become read-only, disrupting ongoing work.

To regain access, Microsoft charges reactivation fees of $0.60 per gigabyte, plus ongoing monthly storage fees of $0.05 per gigabyte. For businesses with multiple former employees, this can add up quickly, turning a seemingly simple offboarding oversight into a significant expense.

How This Change Can Impact Your Business Operations

If your HR team, finance department, or any other group relies on files stored in a terminated employee’s OneDrive, this policy puts your workflows at risk. In one recent case, a client’s HR team lost access to essential documents stored in a terminated user’s OneDrive. Some files had been accessed daily for over three years.

This sudden lockout caused operational delays and forced an urgent remediation process. This example underscores why a proactive approach to file retention and offboarding is essential for maintaining business continuity.

Smart Options for Retaining Termed User Files

As your managed IT services provider, Louisville Geek recommends one of three strategies to retain access to important files while staying compliant and cost-effective:

• Migrate Files to Another User’s OneDrive: Suitable for smaller file sets or when responsibility for files transfers to a specific team member.
• Migrate Files to a SharePoint Site: A scalable solution that supports collaboration, access control, and centralized management for team-based file retention.
• Maintain Unlicensed OneDrive Accounts With Licensing Fees: While necessary in some cases, this option involves ongoing costs and should be used judiciously.

How Louisville Geek Helps You Stay Ahead of IT Changes

At Louisville Geek, we monitor changes from Microsoft and other technology providers so you don’t have to. Our service engineering and vCIO teams actively identify clients who might be impacted by OneDrive enforcement, review your current offboarding practices, and provide tailored recommendations.

We are here to help you implement the best file retention strategy, whether that means data migration, SharePoint setup, or managing licensing fees to prevent disruptions and control costs.

Don’t Wait Until It’s Too Late

If you’re unsure how your company manages employee offboarding and data retention, reach out to your Louisville Geek vCIO or open a support ticket today. Addressing this now will help you avoid lost file access, workflow interruptions, and unnecessary expenses. Partner with Louisville Geek to confidently navigate Microsoft’s evolving policies and keep your business running smoothly.