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Form I-9 and E-Verify: Current Requirements, Anticipated Changes and Solutions
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Form I-9 and E-Verify: Current Requirements, Anticipated Changes and Solutions

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  • 1. Form I-9 and E-Verify: Current Requirements, Anticipated Changes, and SolutionsDecember 6, 2011© 2011 Verifications, Inc. 1 © 2011 Verifications, Inc. December 6, 2011 - 1
  • 2. PresentersMary Poquette Thomas BrechtelChief Compliance and Security Officer Executive Vice President, BusinessVerifications, Inc. Development763.420.0606 Form I-9 Compliance, LLCmary.poquette@verificationsinc.com 949.640.4949 tbrechtel@formi9.com © 2011 Verifications, Inc. December 6, 2011 - 2
  • 3. Discussion Comparison Current Requirements Legislative Landscape ICE Enforcement Solutions to Mitigate Risk © 2011 Verifications, Inc. December 6, 2011 - 3
  • 4. Polling Question # 1Does your company currently usethe E-Verify system?• Yes• No, but considering it• No, and not considering it• I don’t know © 2011 Verifications, Inc. December 6, 2011 - 4
  • 5. Form I-9 US Citizenship and Immigration Services: “All U.S. employers must complete and retain a Form I-9 for each individual they hire for employment in the United States. This includes citizens and noncitizens.” Bloomberg Law Reports: “…often dubbed the most complicated one-page form in America…” USCIS Form I-9 Handbook for Employers: 65 Pages www.uscis.gov/everify• Estimated Up to 54% of I-9s Incorrectly Completed © 2011 Verifications, Inc. December 6, 2011 - 5
  • 6. E-Verify• US Citizenship and Immigration Services: E-Verify is an Internet-based system that allows businesses to determine the eligibility of their employees to work in the United States. E-Verify is fast, free and easy to use – and it’s the best way employers can ensure a legal workforce. www.uscis.gov/everify• Testifying to Senate Panel, Western Growers Association President Tom Nassif: “The existing challenges we face in securing a stable workforce will pale in comparison to the devastating impact of E-Verify legislation in the absence of a workable labor program," © 2011 Verifications, Inc. December 6, 2011 - 6
  • 7. ComparisonForm I-9: Is a Form E-Verify: Is a Process• Required by Federal Law • Inconsistently Required • Very Limited Exceptions • Required for most Federal Contractors; required in various states for some/all employers• Documents Right To Work • Confirms Right to Work• SSN Not Required • SSN Required*• Independent of E-Verify • Dependent upon Form I-9• Employee/Employer are • SSA/DHS Databases are Information Sources Information Source• Electronic and Paper Options • Web-Based Electronic Process• Record Retention Required • Retain Case Result with I-9 * Assistance to obtain SSN can be provided © 2011 Verifications, Inc. December 6, 2011 - 7
  • 8. E-Verify Current Requirements Federal and State Federal: Effective 9/8/09, Executive Order 12989 requires E-Verify use by most federal contractors.© 2011 Verifications, Inc. December 6, 2011 - 8
  • 9. By the Numbers: E-Verify Use• Participation • 17.4 Million Employment Queries Processed in FY 2011 • Over 292,000 employers with 898,000 locations participate (1% of total employers) • 1000 employers sign up each week• Records Searched • 455M Social Security Administration Records • 80M Department of Homeland Security Records• Results, FY 2010 • 98.3% Automatically Confirmed • 1.7% Initial Mismatch • 0.3% Later Resolved • 1.43% Confirmed Not Authorized © 2011 Verifications, Inc. December 6, 2011 - 9
  • 10. FY 2010 E-Verify Results 1.70% Confirmed as Authorized to Work Initial Mismatch 98.30%Source: USCIS Statistics and Reports, 6/7/2011© 2011 Verifications, Inc. December 6, 2011 - 10
  • 11. Pending E-Verify Use Requirements• Alabama • Effective 1/1/12 - State contractors/subcontractors• Georgia • Effective 1/1/12 – Employers with 500+ Employees • Effective 7/1/12 – Employers with 100+ Employer• Louisiana • Effective 1/1/12 • State contractors must attest to use • Obtain sworn statements from subcontractors• California © 2011 Verifications, Inc. December 6, 2011 - 11
  • 12. California and E-Verify AB 1236 - Employment Acceleration Act of 2011 Permits E-Verify Use; Cannot Be Required “Except as required by federal law, or as a condition of receiving federal funds, neither the state nor a city, county, city and county, or special district shall require an employer to use an electronic employment verification system, including under the following circumstances: (a) As a condition of receiving a government contract. (b) As a condition of applying for or maintaining a business license. (c) As a penalty for violating licensing or other similar laws.” Nullifies Requirements in 11 CA Cities Court Challenge Likely © 2011 Verifications, Inc. December 6, 2011 - 12
  • 13. Legislative Activity• Federal Legislation to Create National Standard • HR 2885, Legal Workforce Act • Reported out of House Judiciary, 9/21/11 • Floor action not yet scheduled • S 1196, Achieving Accountability Through Electronic Verification Act • Remains in Committee • HR 2164 – Legal Workforce Act • Remains in Committee• Companion Bills to Address Agricultural Needs• Many Other Bills Incorporating Immigration Issues• Additional State Legislation Likely © 2011 Verifications, Inc. December 6, 2011 - 13
  • 14. Political Climate• Supporting National E-Verify Requirement • Anti-immigration groups • A method to prevent hiring of (7 million) illegal workers • Create employment opportunities for (26 million) legal workers • Business organizations (i.e., US Chamber of Commerce) • A single US standard to replace inconsistent state laws • Selected legislators • View as technological fix to immigration © 2011 Verifications, Inc. December 6, 2011 - 14
  • 15. Political Climate• Opposing National E-Verify Requirement • Selected Legislators • Anti-business – creates obstacles for legal workers; increase illegal workers • Fails to address core immigration reality • Agriculture Industry • Agricultural impact “devastating” • Legislation must include temporary visa solution • Anti “Big Government” supporters • Imposes on state’s rights; expands federal authority • Cost of E-Verify expansion estimated at $400M year © 2011 Verifications, Inc. December 6, 2011 - 15
  • 16. Immigration and Customs Enforcement ICE© 2011 Verifications, Inc. December 6, 2011 - 16
  • 17. ICE Enforcement• FY 2011 - Removed 396,906 individuals • 216,698 (55%) were convicted criminal aliens • 89% increase since FY 2008• Since FY 2009, • Audited 6,000+ employers • Debarred 441 Companies and Individuals • Imposed $76 M in Sanctions • Criminally arrested 221 employers © 2011 Verifications, Inc. December 6, 2011 - 17
  • 18. By the Numbers: ICE Enforcement• 3015 Investigations • 54% increase from FY 08• 221 Employer Arrests • 45% increase from FY 08• 2393 Notices of Inspection Issued • 375% increase from FY 08• 331 Final Orders* Issued • 1738% Increase * Final Order Requires Employer to Cease Illegal Activity and Pay Fines/Penalties © 2011 Verifications, Inc. December 6, 2011 - 18
  • 19. By the Numbers: $$$• $9,000,000 • Final Order Employer Fines • 1233% increase from FY 08• $36,000,000 • Workplace Investigation Fines FY 10 • Judicial fines, forfeitures, and restitutions• $1,047,110 • Abercrombie & Fitch Settlement • Based on Technical Deficiencies of Electronic I-9 System © 2011 Verifications, Inc. December 6, 2011 - 19
  • 20. By the Numbers: Abercrombie• No Evidence of Employment of Undocumented Workers• “Effort” Inadequate as Defense• Electronic I-9 Deficiencies • Lacking in Core Elements • Audit Trail • Electronic Signature Capabilities• $1,047,110 Settlement © 2011 Verifications, Inc. December 6, 2011 - 20
  • 21. Polling Question # 2Are you adequately prepared for anICE audit?• No• Yes• Unsure © 2011 Verifications, Inc. December 6, 2011 - 21
  • 22. SOLUTIONS22 © 2011 Verifications, Inc. December 6, 2011 - 22
  • 23. FORM I-9 COMPLIANCE, LLCFounded in 2005 on a vision of solving I-9 compliancechallenges for employers with innovation, expertise andtechnologyPartnered and integrated with Verifications, Inc. to: • Deliver creative, effective and streamlined solutions and; • Bridge the gap between day-to-day challenges and the ever-changing regulatory environment23 © 2011 Verifications, Inc. 23 December 6, 2011 - 23
  • 24. DECISION EXISTING NEW HIRES EMPLOYEES POINT I-9 AUDIT ELECTRONIC IMPLEMENTATION DATE ELECTRONIC FORM I-91. IDENTIFY ALL ERRORS, OMISSIONS AND 1. ERROR-DETECTING DISCRERPANCIES 2. AUTOMATED EXPIRING DOCUMENT ALERTS2. IDENTIFY MISSING AND PURGABLE I-9’S 3. SECTION 3 UPDATES3. IDENTIFY EXPIRED DOCUMENTS THAT REQUIRE UPDATING 4. TERMINATION/PURGE CAPABILITIES4. STEP-BY-STEP CORRECTION INSTRUCTIONSEMPLOYER REMEDIATION1. I-9 CORRECTION PROCESS COMPLETED 1. EMPLOYMENT ELIGIBILITY VERIFICATION2. ALL I-9 CORRECTIONS (AS ALLOWED BY LAW) 2. SEAMLESS “ONE CLICK” SUBMISSION INITIALED AND DATED IN: 3. NO E-VERIFY TUTORIALS OR TESTING REQUIRED  SECTION 1 – EMPLOYEE 4. E-VERIFY EMPLOYER AGENT  SECTION 2 & 3 - EMPLOYER ELECTRONIC CAPTURE & ELECTRONIC CAPTURE & STORAGE STORAGE 1. SCANNING AND INDEXING PROCESS 1. 24/7 ACCESS TO EMPLOYEE RECORDS 2. AUTOMATED EXPIRING DOCUMENT ALERTS 2. CUSTOMIZED REPORTING 3. TERMINATION/PURGE CAPABILITIES 3. TERMINATION/PURGE CAPABILITIES 4. 24/7 ACCESS TO EMPLOYEE RECORDS 4. MISSING I-9 REPORTS 5. REPORTING END RESULT IS A COMPLIANT I-9 DATABASE © 2011 Verifications, Inc. December 6, 2011 - 24
  • 25. Polling Question # 3When was the last time yourorganization completed an external“third party” audit of your existingI-9 Forms?• Within the last year• Over 1 year ago• Never © 2011 Verifications, Inc. 25 December 6, 2011 - 25
  • 26. EXISTING EMPLOYEES 26 © 2011 Verifications, Inc. December 6, 2011 - 26
  • 27. Audit – Step 1 COPY OF ORIGINAL I-9 FORM This document is a REPRESENTATION OF AN ORIGINAL I-9 FORM RECEIVED FOR I-9 AUDITING PURPOSES© 2011 Verifications, Inc. December 6, 2011 - 27
  • 28. Audit – Step 2 COPY OF ORIGINAL I-9 FORM WITH HIGHLIGHTED ERRORS AND OMISSIONS This document is a representation of the first step in the I-9 Auditing Process. This initial review of THE I-9 Form is conducted by one of our Senior Auditors who identify (by highlighting) all errors, omissions and/or document discrepancies.© 2011 Verifications, Inc. December 6, 2011 - 28
  • 29. Audit – Step 3 INDIVIDUAL EMPLOYEE I-9 FORM AUDIT REPORT This Report is generated for each Audited I-9 FORM. THE Report details all errors, omissions and/or document discrepancies found FOR EACH I-9 Form and recommends specific action(s) FOR REMEDIATION. This Report is attached to each Audited I-9 Form.© 2011 Verifications, Inc. December 6, 2011 - 29
  • 30. Audit – Step 4 CORRECTED I-9 FORM This document is a representation of a properly corrected I-9 Form and is the final stage in the Auditing Process. THE „RED‟ DENOTES LEGAL CHANGES WHICH HAVE BEEN MADE WHICH ARE THEN INITIALED AND DATED BY THE APPROPRIATE PARTY(S) WHO MADE THE CHANGES.© 2011 Verifications, Inc. December 6, 2011 - 30
  • 31. Audit – Step 5 COMPREHENSIVE FORM I-9 AUDIT REPORT This document PROVIDES A COMPREHENSIVE SUMMARY OF ALL ERRORS, OMISSIONS AND/OR DISCREPANCIES and “MISSING” I-9 FORMS AND IDENTIFIES SPECIFIC ADVERSE PATTERNS OR PRACTICES IN THE CURRENT I- 9 ADMINISTRATION PROCESSES AND PROCEDURES. THIS DOCUMENT REFLECTS THE ACTUAL RESULTS PAGE OF A SIMILARLY SIZED AUDIT OF 7,296 I-9 FORMS.© 2011 Verifications, Inc. December 6, 2011 - 31
  • 32. Scan and IndexExisting Forms I-9 into the system – Section 3 updates – Management alerts 90/60/30 days in advance of work authorization documents expiring – Termination dates for auto-purging © 2011 Verifications, Inc. December 6, 2011 - 32
  • 33. NEW HIRES© 2011 Verifications, Inc. December 6, 2011 - 33
  • 34. Electronic Forms I-9– Error detecting, simple step-by-step instructions– Click to sign electronic signature– Section 3 updates– Management alerts for expiring documents– Termination capabilities/automatic purge– One click E-Verify submission– Automated alerts for E-Verify processes and status changes– Export options © 2011 Verifications, Inc. December 6, 2011 - 34
  • 35. Management ServicesAutomate processes that are currentlymanual to  Create efficiencies  Simplify program management  Ensure compliance © 2011 Verifications, Inc. December 6, 2011 - 35
  • 36. Terminations Automate the “tagging” of I9s with termination dates so they can be automatically purged according to government regulations How it works:  Send Fi9 an employee “termination” feed.  Fi9 applies a “termination” status to the respective employee I-9 Forms.  Records can be purged according to regulation. Benefit: Eliminates follow up for purging. Ensures compliance to retention guidelines with very limited effort, if any. © 2011 Verifications, Inc. December 6, 2011 - 36
  • 37. Missing I9s A report identifying new hires who do not have an I-9 Form in the system. How it works:  Send a file containing new hire data  Fi9 compares file to newly created I-9 Forms for that same time period  You receive I-9 “Exception Report” showing new hires missing a completed I-9. Benefit: Eases overall management of the program, can be used to coach and monitor. Ensures compliance with regulation requiring an I9 for each employee within 3 days of hire. © 2011 Verifications, Inc. December 6, 2011 - 37
  • 38. Transfers Moves I-9 Forms of employees that have been transferred from one location to another to be moved to the correlated location in the system. How it works:  Provide a file containing employee “transfer” information  Employee records transferred within the system. Benefit: Simplifies record keeping and aligns I9/E-Verify documents. © 2011 Verifications, Inc. December 6, 2011 - 38
  • 39. Hire Date Discrepancy A report identifying I-9 hire date discrepancies when compared to payroll start date. How it works:  Provide a “new hire” data feed which includes payroll start date  Fi9 compares to hire date on the completed I9s in section 2.Benefit: Eases overall management of the program, can be used to coach and monitor. Ensures compliance with regulation to have an I9 for each employee within 3 days of hire. © 2011 Verifications, Inc. December 6, 2011 - 39
  • 40. QUESTIONS? COMPLIANCE@VERIFICATIONSINC.COM© 2011 Verifications, Inc. December 6, 2011 - 40
  • 41. Learn More• Take advantage of special discounts on management services, auditing services and scanning of paper I- 9s. Contact your Account Manager, E-mail sales@verificationsinc.com or call our Sales Department toll-free at (866) 455-0779.• Have a compliance-related question? Submit your question to our Compliance experts at www.verificationsinc.com. © 2011 Verifications, Inc. December 6, 2011 - 41
  • 42. Follow-Up• Survey• Copy of this Presentation• Q&A• Link to Recording of this Webinar © 2011 Verifications, Inc. December 6, 2011 - 42
  • 43. Gifts from the Government: Tax Credits Made Easy• 1 to 2 p.m. CST, Dec. 15, 2011• Register at: http://info.verificationsinc.com/Work- Opportunity-Tax-Credit-Webinar.html © 2011 Verifications, Inc. December 6, 2011 - 43