New Jersey and Pennsylvania Consider Stricter Employment Verification Requirements

Proposed legislation in Pennsylvania and New Jersey would impose stricter work authorization verification requirements on employers.

Pennsylvania

State Flag of PennsylvaniaHouse Bill 1502 would require all contractors and subcontractors on public works projects to verify the employment eligibility of new employees through E-Verify, the federal electronic employment verification system, and to verify existing employees’ Social Security numbers. In June 2010, this bill was referred to the House State Government Committee.

House Bill 1503 would require all construction industry employers to verify the employment eligibility of new employees through E-Verify and to verify existing employees’ Social Security numbers. This bill was passed by the House in June 2010 and is currently in the Senate Labor and Industry Committee.

Employers that in good faith rely on federal programs (E-Verify and the Social Security Number Verification Service) to verify new employees’ legal work status and existing employees’ Social Security numbers will be immune from sanctions. However, employers face debarment from public work contracts (HB 1502) or license forfeiture (HB 1503) for noncompliance. Additionally, employers could face civil liability for retaliating against employees who complain about alleged violations or participate in investigations, hearing or inquiries concerning alleged violations.

New Jersey

State Flag of New JerseyNew Jersey has also introduced two bills, Senate Bill 1842 and Assembly Bill 2600, which would prohibit the employment of unauthorized workers and require all employers who employ 100 or more employees to verify the employment eligibility of all new employees through E-Verify beginning January 1, 2011; compliance for smaller employers would begin on January 1, 2012.

In New Jersey, a rebuttable presumption that an employer did not intentionally or knowingly employ an unauthorized alien will exist if E-Verify was used for verification purposes. Violations can result in sanctions ranging from $100 to $1,000 and suspension and/or revocation of business licenses, depending on the severity of the offense. The New Jersey legislation, unlike the Pennsylvania bills, contains no retaliation provisions.

S1842 was introduced in May 2010 and referred to the Senate Labor Committee. A2600, also introduced in May 2010, was referred to the Assembly Labor Committee.

Employer Audits

The New Jersey and the Pennsylvania proposals also contain enforcement mechanisms. Under the proposed measures, the Pennsylvania and New Jersey labor departments would conduct employer audits and investigate complaint-based allegations to ensure employer compliance. Given the current climate surrounding immigration, it is not surprising that both states have included audits as an enforcement tool. As we previously discussed on this blog, the centerpiece of the Obama administration’s immigration enforcement strategy is the employer audit and, thus far, federal agencies have doled out considerable fines for non-complying employers.

USCIS Issues Guidance on Determining Hire Date for E-Verify Purposes

United States Citizenship and Immigration Services LogoEmployers using E-Verify to authenticate employees’ work authorization status are subject to the Three-Day Rule, which requires an employer to create an E-Verify case no later than three business days after an employee first works for pay (commonly referred to as the Hire Date). Confusion sometimes arises, however, because the Hire Date differs depending on whether the E-Verify case is created before or after the first day an employee works for pay. To clarify the matter, United States Citizenship and Immigration Services (USCIS) created a webpage explaining how to determine the Hire Date, and how to calculate the compliance deadline.

Employers can create an E-Verify case before the individual’s first day of work for pay if the individual has accepted an employment offer and has completed a Form I-9. The Hire Date is the date the E-Verify case is created.

Example: An employee accepts an employment offer and completes a Form I-9 on Thursday, but will not begin work until Monday. The employer creates an E-Verify case on Friday, the day after both conditions were met. Friday is the Hire Date.

Employers can also create an E-Verify case on or after the first day an employee works for pay. However, the employer must create a case no later than the third business day after the employee first works for pay.

Example: A business only operates Monday through Friday. An employee first works for pay on Monday, which is the Hire Date. For Three-Day Rule purposes, the first day is excluded from calculating the compliance deadline. Accordingly, Thursday is the third business day after the Hire Date, and the last day for an employer to create an E-Verify case.

Few Utah Businesses Have Complied with Mandatory E-Verify Enrollment

E-Verify LogoAccording to the Salt Lake Tribune, since the July 1, 2010, effective date of a Utah law requiring businesses with 15 or more employees to verify new hires’ work status through E-Verify, less than one-third have done so. The figure did not surprise Utah Governor Gary Herbert, who stated that even the law’s sponsor did not expect universal compliance. Some suggest that employers either do not know about the new requirement to use the federal electronic employment verification system, or are not hiring due to poor economic conditions, which could explain the low enrollment numbers.

Obama Administration's Immigration Enforcement Strategy: Audits

Binders and Magnifying GlassAudits, not raids, are the centerpiece of the Obama administration’s immigration enforcement strategy, reports the New York Times. In the past year, Immigration and Customs Enforcement (ICE) audited over 2,900 business to determine whether illegal immigrants were employed, and, in 2010, it imposed $3 million in civil fines. While audits are less visually dramatic than raids, the effects on workers and businesses are not.

If an audit reveals that a business employs illegal workers, the employer must fire those employees or face criminal charges. For employers in migrant-driven industries, audits significantly and immediately deplete their workforces, making it difficult to conduct business. For dismissed employees, finding work in local or surrounding areas is difficult because potential employers fear being audited themselves.

Though ICE officials contend the audits’ targets are egregious labor and immigration law violators, some contend that the agency is missing its mark by going after employee-friendly businesses. Others, however, contend that the agency’s efforts are insufficient because employees found to be illegal immigrants are being fired instead of being arrested and deported.

Massachusetts Senate Approves Budget Amendment Containing Immigration-Related Prohibitions

The New York Times reports that the Massachusetts Senate has voted 28 to 10 in favor of an immigration-related amendment (pdf) to the state budget bill that would require state contractors to verify that their workers are legally authorized to live and work in the United States. The proposed law also would penalize contractors violating the law by prohibiting them from doing business with the state. Additionally, the state attorney general’s office would be required to set up a hotline by which people could anonymously report alleged hiring of illegal immigrants, and to investigate such allegations.

What Arizona's Controversial Immigration Law Means for Employers

State Flag of ArizonaWith many in the nation watching, Arizona Governor Jan Brewer signed the "Support Our Law Enforcement and Safe Neighborhoods Act" ("SB 1070") into law. The legislation represents Arizona's latest effort to combat illegal immigration and is now the centerpiece of a national political firestorm, including criticism from President Obama and numerous public interest groups. In addition, SB 1070 already is the subject of two federal lawsuits challenging its constitutionality. Lost among this debate, however, are those provisions of the law directed toward Arizona employers. To learn more about the law and its implications for employers, please continue reading Littler's ASAP What Arizona's Controversial Immigration Law Means for Employers by Neil M. Alexander and Michael J. Lehet.

United Kingdom: Identity Cards for Skilled Migrant Workers Now Available

As this blog previously noted, as of January 6, 2010, the UK Border Agency (UKBA) has started issuing identity cards to skilled foreign workers and their dependents. The identity card confirms the holder's identity, nationality, and immigration status in the UK, and also indicates whether the holder is authorized to work or study under the country’s points-based immigration system.

In November 2008, the UKBA started issuing identity cards to various non-European foreign nationals living in the UK, and in December 2009 it introduced voluntary identification cards for British, European Economic Area and Swiss nationals.

UAE: Transition to Single Application for Visas, Labor and Identification Cards

Gulfnews.com reports that a single application form for United Arab Emirates residence visas, labor cards and identification cards will be available later this year. Instead of providing the same biographical data (e.g., name, nationality, marital status) on three separate applications, petitioners will complete one application and the information supplied will be used to process all three official documents. Approved applicants will then be issued an all-purpose identification card.

During the fourth quarter of 2010, residence visa information will be transferred to the identification card, and the transfer of labor card information will follow next. Upon complete incorporation, individuals will be able to present identification cards to enter the UAE and to verify their work authorization, thereby supplanting separate visa stamps and labor cards.

The City of Lancaster, California Will Require Businesses to Use E-Verify

Businesses in the southern California city of Lancaster will be required to use E-Verify to confirm new hires’ eligibility to legally work in the United States, according to the Los Angeles Times. Companies that fail to comply with the requirement could face revocation of their business license. At least 11,000 California business are already enrolled in the E-Verify program, which processed over 8.5 million queries in fiscal year 2009.

E-Verify Usage Continues to Increase

A recent USCIS study reports that American businesses authenticate 1 in 4 new hires’ work status using E-Verify. According to a Homeland Security Insight & Analysis article, in 2009 there have been about 6 million E-Verify queries, a considerable increase from previous years. E-Verify boasts a 96.9% accuracy rate, and the program is frequently analyzed and updated. Substantial improvements are scheduled to occur in August 2009.

Although E-Verify has been praised by many in the business community, caution over mandating usage among all employers, particularly smaller employers, has been expressed. Others, however, believe that the system represents an efficient and effective way to curb illegal immigration, and are hoping that Congress increases funding and expands the program.


 

European Union: Member States Adopt "Blue Card" Immigration Program

The European Union has formally adopted a work authorization program intended to attract highly skilled foreign workers and modeled after the United States’ Green Card program. The “Blue Card” will allow immigrants to work in any EU member state (except Great Britain, Ireland and Denmark) and will entitle card holders to limited social and welfare rights, for a renewable period of one to four years, EUobserver.com reported. Blue Card holders will receive equal treatment with nationals as to working conditions, including pay and dismissal, and will have some ability to move between EU member states. The program also includes penalties for employers who hire illegal immigrants.

Russia: Foreign Workers Face Increasing Difficulties in Obtaining and Renewing Authorization Documents

As reported by The Moscow News Weekly, over the past several months it has become more difficult for companies to hire and retain foreign employees in Russia. A major issue cited by various foreign business associations is that the enforcement of migration rules can be unpredictable. For example, the Federal Migration Service has become stricter in enforcing certain rules: Two years ago, diplomas attesting to the applicant's educational qualifications were required only for language teachers, but since October 2008, the rule is being enforced for all professions.

There also are concerns about the quota system for work permits and the bureaucratic obstacles that employers sometimes encounter with the system. One possible solution is to give certain white-collar employees from the European Union, the United States and Japan "green cards" that would exempt card holders from the quota system. The Federal Migration Service has drafted a bill along these lines that may be introduced in the Duma in July.

Another reason for the difficulties is the procedure by which representative offices hire foreign workers. A representative office is issued a permit by an accrediting body (such as the Chamber of Commerce and Industry or the State Registration Chamber) which states how many foreign employees the representative office may hire. Under this arrangement, foreign employees working for the representative office do not receive work permits, but rather an accreditation card from the accrediting body. Recently there have been reports of police officers questioning the validity of these accreditation cards during their routine document checks in the streets. The Japan Business Club and the Association of European Businesses have been advising their members to obtain work permits for accredited foreign employees working in representative offices.

Effective Date of Federal Contractor E-Verify Regulation Pushed Back to May 2009

The effective date of the E-Verify federal contractor regulation has been pushed back yet again – it has now been delayed until May 21, 2009. (See our previous blog post for more information about the original compliance deadline). The E-Verify federal contractor rule requires certain federal contractors to use E-Verify to check the work authorization of employees assigned to federal contracts, as well as new hires. Continue reading Littler's ASAP, Effective Date of Federal Contractor E-Verify Regulation Pushed Back to May 2009, by Jorge Lopez, Joshua Roffman and Lisa Cottle.