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

© 2011 Verifications, Inc. December 6, 2011 - 1 1 © 2011 Verifications, Inc.

Form I-9 and E-Verify:

Current Requirements, Anticipated Changes, and Solutions

December 6, 2011

© 2011 Verifications, Inc. December 6, 2011 - 2

Presenters

Mary Poquette

Chief Compliance and Security Officer

Verifications, Inc.

763.420.0606

[email protected]

Thomas Brechtel

Executive Vice President, Business Development

Form I-9 Compliance, LLC

949.640.4949

[email protected]

mailto:[email protected]



Discussion

Comparison

Current Requirements

Legislative Landscape

ICE Enforcement

Solutions to Mitigate Risk


• Yes

• No, but considering it

• No, and not considering it

• I don’t know

Polling Question # 1

Does your company currently use

the E-Verify system?


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

http://www.uscis.gov/everify


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,"




Comparison

Form I-9: Is a Form • Required by Federal Law

• Very Limited Exceptions

• Documents Right To Work

• SSN Not Required

• Independent of E-Verify

• Employee/Employer are

Information Sources

• Electronic and Paper Options

• Record Retention Required

E-Verify: Is a Process • Inconsistently Required

• Required for most Federal

Contractors; required in various

states for some/all employers

• Confirms Right to Work

• SSN Required*

• Dependent upon Form I-9

• SSA/DHS Databases are

Information Source

• Web-Based Electronic Process

• Retain Case Result with I-9

* Assistance to obtain SSN can be provided


E-Verify Current Requirements Federal and State

Federal: Effective 9/8/09,

Executive Order 12989 requires E-Verify use by

most federal contractors.


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


FY 2010 E-Verify Results

98.30%

1.70%

Confirmed as Authorized to Work

Initial Mismatch

Source: USCIS Statistics and Reports, 6/7/2011


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


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


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


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


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


Immigration and Customs

Enforcement

ICE


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


By the Numbers: ICE Enforcement

• 3015 Investigations

• 54% increase from FY 08

• 221 Employer Arrests


• 2393 Notices of Inspection Issued


• 331 Final Orders* Issued

• 1738% Increase

* Final Order Requires Employer to Cease

Illegal Activity and Pay Fines/Penalties


By the Numbers: $$$

• $9,000,000

• Final Order Employer Fines


• $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


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


• No

• Yes

• Unsure


Are you adequately prepared for an

ICE audit?

© 2011 Verifications, Inc. December 6, 2011 - 22 22

SOLUTIONS


FORM I-9 COMPLIANCE, LLC

Founded in 2005 on a vision of solving I-9 compliance

challenges for employers with innovation, expertise and

technology

Partnered 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 environment

23


DECISION POINT

I-9 AUDIT

EMPLOYER REMEDIATION

ELECTRONIC CAPTURE & STORAGE

ELECTRONIC FORM I-9

ELECTRONIC CAPTURE & STORAGE

1. ERROR-DETECTING

2. AUTOMATED EXPIRING DOCUMENT ALERTS

3. SECTION 3 UPDATES

4. TERMINATION/PURGE CAPABILITIES

1. EMPLOYMENT ELIGIBILITY VERIFICATION

2. SEAMLESS “ONE CLICK” SUBMISSION

3. NO E-VERIFY TUTORIALS OR TESTING REQUIRED

4. E-VERIFY EMPLOYER AGENT

1. 24/7 ACCESS TO EMPLOYEE RECORDS

2. CUSTOMIZED REPORTING


4. MISSING I-9 REPORTS

1. I-9 CORRECTION PROCESS COMPLETED

2. ALL I-9 CORRECTIONS (AS ALLOWED BY LAW) INITIALED AND DATED IN:

SECTION 1 – EMPLOYEE

SECTION 2 & 3 - EMPLOYER

1. IDENTIFY ALL ERRORS, OMISSIONS AND DISCRERPANCIES

2. IDENTIFY MISSING AND PURGABLE I-9’S

3. IDENTIFY EXPIRED DOCUMENTS THAT REQUIRE UPDATING

4. STEP-BY-STEP CORRECTION INSTRUCTIONS

1. SCANNING AND INDEXING PROCESS

2. AUTOMATED EXPIRING DOCUMENT ALERTS


4. 24/7 ACCESS TO EMPLOYEE RECORDS

5. REPORTING

END RESULT IS A COMPLIANT I-9 DATABASE

ELEC

TR

ON

IC

IM

PLEM

EN

TA

TIO

N D

ATE

EXISTING EMPLOYEES

NEW HIRES


• Within the last year

• Over 1 year ago

• Never


When was the last time your

organization completed an external

“third party” audit of your existing

I-9 Forms?


EXISTING EMPLOYEES

26


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


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.

Audit – Step 2


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.


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.


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.


Scan and Index

Existing 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


NEW HIRES


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


Management Services

Automate processes that are currently

manual to

Create efficiencies

Simplify program management

Ensure compliance


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.


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.


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.


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.


QUESTIONS?

[email protected]


Learn More

• Take advantage of special discounts on management

services, auditing services and scanning of paper I-

9s. Contact your Account Manager, E-mail

[email protected] 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.


http://www.verificationsinc.com/


Follow-Up

• Survey

• Copy of this Presentation

• Q & A

• Link to Recording of this Webinar


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

http://info.verificationsinc.com/Work-Opportunity-Tax-Credit-Webinar.html









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

Business

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