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USCIS Releases Revised I-9 and Homeland Security Puts Employer Records under a Microscope

SUMMARY

The Employment Eligibility Verification Form I-9, will continue to be valid for use beyond June 30, 2009. U.S. Citizenship and Immigration Services (USCIS) announced that the Office of Management and Budget (OMB) has approved the continued use of the current version of Form I-9 through August 31, 2012. Consequently, USCIS has amended the form to reflect a new revision date of August 7, 2009. Employers may use the Form I-9 with the revision date of either Aug. 7, 2009 or Feb. 2, 2009. The revision dates are located on the bottom right-hand portion of the form.

Additionally, in the Obama administration's first major workforce-compliance enforcement action, Immigration and Customs Enforcement (ICE) recently notified 625 employers of plans to audit their I-9 forms and files. The Department of Homeland Security (DHS), the agency in charge of ICE, announced that it served "Notices of Inspection" to each of these organizations to mark the beginning of the ongoing investigations. Many more audits on both a random and targeted basis are expected in the coming months. The full scale audit will target employers across the country, with an initial emphasis on companies located in New York and California.

WHO DOES THIS AFFECT

All U.S. employers must complete and retain a Form I-9 for each individual they hire to work in the United States. This includes citizens and noncitizens.

The form must be available for inspection by authorized U.S. Government officials. Therefore, employers should take proactive steps to confirm that their new hires and current employees (and the employees of their vendors and contractors) are authorized to work under federal immigration law.

WHAT YOU NEED TO DO NOW

Employers must evaluate their current compliance practices and take corrective actions to ensure a fully authorized workforce. Employers should be prepared to supply required paperwork (including original I-9s) to ICE within 72 hours of receiving notice of an audit. In preparation, it is recommended employers take the following steps:

  • Be sure that you are using the most current version of the I-9 for all new hires. Both the employee and employer should complete all I-9 forms prior to filing and within three (3) days of the employee's start date. NOTE: It is recommended that you begin to use the newly revised 08/31/12 version.
  • Ensure you have retained a valid and complete I-9 for each employee for three years after the date of hire or for one year after employment is terminated, whichever is later.
  • It is recommended that I-9 forms should be removed from both current and terminated employee files and stored in binders, separated into current and terminated employees.
  • Conduct an internal I-9 audit and take necessary steps to reconcile missing or incorrect information, check retention rates and dispose of documents that no longer must be kept. It is recommended that employers document the internal audit initiative and store the notice with the organization's I-9 records. Documentation should include the date the audit was conducted and indicate that all documentation was updated as of that date to ensure compliance.
  • Ensure you have a system to notify you before a worker's employment permission must be re-verified. The employer should track visa holders to ensure they are reviewing updated documents in compliance with Homeland Security guidelines. Employees working in the United States on a visa program must provide updated documentation each time their visa is renewed.

PENALTIES FOR NON-COMPLIANCE

Under the Immigration and Nationality Act and Homeland Security regulations, employers face expensive civil fines for violating employment-eligibility (I-9) requirements. Steep fines can also be levied for failing to maintain required immigration paperwork and engaging in illegal discrimination based on national origin or citizenship status. Furthermore, fines for knowingly employing an undocumented worker have increased significantly and continue to escalate with increases in the cost of living. The maximum fine now ranges from $11,000 to $16,000 per worker.

Penalties for federal and state immigration violations extend beyond costly civil fines. Depending on the severity of the violation, executives, business managers, human resources staff members, worksite supervisors, and union stewards may all face potential civil and criminal liability for failure to abide by the immigration laws. More severe penalties include: imprisonment, asset forfeiture, and debarment from government contracting and/or from sponsorship of additional foreign workers.

ADDITIONAL INFORMATION

In addition to the items listed in the "What You Need to Do Now" section, the following best practices are recommended to ensure your organization is in compliance:

  • State Immigration/Workplace Enforcement Laws - Challenges are compounded for employers doing business in multiple states, since many cities and states have passed laws and ordinances that surpass federal law in enforcing additional immigration penalties. More than a dozen states have their own immigration/workforce compliance laws and over 1,000 immigration-related bills were introduced in the states in the first quarter of 2009.
    • Electronic Storage - Original paper records are allowed to be transferred to an electronic recordkeeping system provided:
    • The new medium is an accurate reproduction of the original paper copy (industry standard is TIF or PDF formats).
    • The electronic records can be converted into a paper copy which is fully legible and given to the Department of Labor upon request.
    • The records retained electronically represent a duplicate or substitute copy of the original paper records.
  • Identity Documents - Photocopying of the documentation provided by the employee to support the I-9 information is not required. You may choose to copy or scan documents presented by an employee, which you must retain with his or her Form I-9. Even if you retain copies of documentation, you are still required to fully complete Section 2 of Form I-9. If you choose to retain copies of employee docu­mentation, you must do so for all employees, regardless of national origin or citizenship status, or you may be in violation of anti-discrimination laws. Keep in mind that, because USCIS does not expect you to be a document expert, you are only expected to reject documents that do not reasonably appear to be genuine or to relate to the person presenting them. Retaining a copy of these records may show a good faith effort to validate documentation.
  • Compliance Training - Provide training for recruiters, Human Resources professionals, and managers to identify and avoid the many pitfalls involved with completing, maintaining, and re-verifying your company's I-9 forms.
  • Spanish Speaking Employees - The Spanish version of Form I-9, may be filled out by employers and employees in Puerto Rico ONLY. Spanish-speaking employers and employees in the 50 states and other U.S. territories may print this for their reference, but may only complete the form in English to meet employment eligibility verification requirements.

New York Extends Continuation of Coverage to 36 Months

SUMMARY OF NEW PROVISIONS

New York now requires insurance carriers to offer continuation of medical coverage for up to 36 months, to plan participants who lose coverage due to termination of employment (for any reason, including gross misconduct) or reduction in hours.

WHO DOES THIS AFFECT

The new provisions will apply to plan participants who are covered under a group health insurance plan that is issued in New York. This also applies to health plans that are subject to either COBRA or the New York state continuation of coverage laws. It does not apply to either self-insured health plans or to health insurance policies issued outside of New York. These changes are retroactively effective as of July 1, 2009.

WHAT YOU NEED TO DO NOW

Employers with New York health insurance or HMO policies should do the following prior to the next renewal date of the policy:

  • Responsible party (insurance carrier or COBRA administrator) should provide affected plan participants with a notice of this change prior to the renewal date of the health insurance policy.
  • Employee communications and documents (including employee handbook) should be changed to indicate 36 months of continued coverage must be offered due to a termination of employment or reduction in hours.

Delaware Extends Discrimination Protection to Include Sexual Orientation

SUMMARY OF NEW PROVISIONS

On July 2, 2009, Delaware signed into law Senate Bill No. 121, which adds the term "sexual orientation" to an existing list of prohibited practices of discrimination. The bill prohibits discrimination against a person on the basis of sexual orientation in housing, employment, public works contracting, public accommodations and insurance.

Delaware joins twenty other states and the District of Columbia in prohibiting discrimination based on sexual orientation, specifically:

  • Thirteen states have legislation prohibiting discrimination on both sexual orientation and gender identity. (California, Colorado, Iowa, Illinois, Maine, Minnesota, New Jersey, New Mexico, Oregon, Rhode Island, Vermont, Washington, and the District of Columbia)
  • Nine states, including Delaware, have laws prohibiting discrimination on the basis of sexual orientation. (Connecticut, Hawaii, Maryland, Massachusetts, Nevada, New Hampshire, New York, Wisconsin and Delaware)
  • Five states have an executive order, administrative order or personnel regulation prohibiting discrimination against public employees based on sexual orientation and gender identity. (Indiana, Kansas, Michigan, Ohio, and Pennsylvania)
  • Three more prohibit discrimination against public employees based on sexual orientation only. (Arizona, Montana, and Virginia)
  • Some states and local governments also prohibit workplace discrimination based on gender identity (an individual's self-identified gender, versus anatomical sex at birth). Currently, the District of Columbia and California, Colorado, Hawaii, Illinois, Iowa, Maine, Minnesota, New Jersey, New Mexico, Oregon, Rhode Island, and Vermont have gender identity discrimination statutes on the books. Furthermore, courts have sometimes interpreted other antidiscrimination statutes, like those protecting individuals based on their gender, to include gender identity in some states without specific statutes.

DEFINING THE TERMS

What is Sexual Orientation?
"Sexual orientation" is defined as heterosexuality, homosexuality or bisexuality. Transgendered employees and gender identity issues are not covered by the changes in the law.

What does this mean for employers?
The law amends Delaware's Discrimination in Employment Act, prohibiting discrimination based on sexual orientation in employment. Under the new law, which is effective immediately, employers may not discriminate based on sexual orientation with respect to compensation, terms, conditions, or privileges of employment. The new law does not provide additional protection to an individual based on transgendered status.

The law imposes no affirmative obligation upon employers to recruit or hire job candidates based on their sexual orientation. The act provides that employers are not obligated to offer health, pension or other benefits on the basis of sexual orientation on the same terms as benefits afforded to the spouses of married employees. Consequently, employers are not required to offer benefits received by married employees to same-sex couples.

What about Religious Organizations?
Religious organizations may consider sexual orientation in their decision-making, provided it is relevant to the views of the faith. However, if the organization earns unrelated taxable income, they may not discriminate on the basis of sexual orientation.

WHAT YOU NEED TO DO NOW

Delaware employers should update their employee handbooks to add sexual orientation to their lists of protected characteristics. They should also educate their supervisors on this change to the law.

FEDERAL LEGISLATION ON THE HORIZON

The Employment Non-Discrimination Act (ENDA) has been introduced in Congress to broaden federal employment discrimination protections to include a ban on discrimination based on sexual orientation and gender identity. The bill would make it illegal for an employer to discriminate with respect to an individual's actual or perceived sexual orientation or gender identity. This discrimination would be prohibited in decisions regarding hiring, firing, compensation, and terms, conditions, or privileges of employment.

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