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THE DAILY NEWS

News Flash!

District Court Blocks No-Match Regulation Implementation

As a result of a lawsuit brought against the Department of Homeland Security's recently issued No-Match Regulations, a U.S. District Court has temporarily blocked the implementation of the rules. The regulations, originally intended to go into effect on Sept. 15th, will now be delayed at least until an Oct. 1st hearing regarding whether or not the court's injunction will stand is completed.

Employers may receive a "no-match" letter from the Social Security Administration indicating that the name and Social Security Number of an employee do not match SSA records. A company that receives a no-match, according to the new rules, would have to follow certain verification procedures in order to avoid the potential charge of knowingly employing illegal workers.

AFL-CIO, the ACLU, and the National Immigration Law Center, along with other interest groups are responsible for filing the suit. DHS stated that it remains hopeful that the regulations will go into effect despite this opposition.

New Safe Harbor Procedure for Employers that Receive a No-Match Letter
The federal government is planning a massive crackdown on businesses that hire illegal immigrants.  It appears that No-Match letters sent by Social Security will be used as leads in investigating companies that allegedly hire illegal workers.

Businesses will be required to re-verify employee's documents and complete a new I-9 form, or decide whether to terminate workers who have a discrepancy in their tax record, if the employee cannot satisfactorily resolve an SSNVS issue within 90 days. Employers will have 30 days to check records, and 90-93 days to resolve problems resulting from a No-Match. Businesses that are found to be noncompliant could face fines ranging from $250 to $10,000.

To Read the regulation in full, click here.

The following information regarding worksite enforcement is from the White House’s official website.  For the complete factsheet, click this link:  The White House.

WORKSITE ENFORCEMENT

  • 10.   Today, The Department Of Homeland Security Issued A "No-Match" Regulation That Will Help Employers Ensure Their Workers Are Legal And Help The Government Identify And Crack Down On Employers Who Knowingly Hire Illegal Workers.  In cases in which an employer has a significant number of employees with inaccurate personal identity information, the Social Security Administration will send the employer a "No-Match" letter.  The regulation clarifies that employers may be held liable if they ignore the "No Match" problems by failing to take specified steps within 90 days of receiving the letter.
  • 11.   In The Coming Months, The Administration Will Publish A Regulation That Will Reduce The Number Of Documents That Employers Must Accept To Confirm The Identity And Work Eligibility Of Their Employees.  Presently, no fewer than 29 categories of documents can be used to establish identity and work eligibility.  Employers have little capacity to verify the authenticity of these documents, and the sheer quantity of accepted documents is an invitation to fraud.  This regulation will reduce unlawful employment by weeding out insecure documents now used often for identity fraud.     
  • 12.   As A Civil Counterpart To The Administration's Strategy Of Using Criminal Investigations To Deter Illegal Employment, The Department Of Homeland Security Will Raise The Civil Fines Imposed On Employers Who Knowingly Hire Illegal Immigrants By Approximately 25 Percent.  Efforts to secure the border will fail unless the "magnet" that attracts illegals is turned off.  Unfortunately, the fines for relying on illegal workers are so modest that some companies treat them as little more than a cost of doing business.  DHS will use existing authority to update civil fines for inflation in order to boost fines by about 25 percent, as much as is allowed under current law.
  • 13.   The Administration Will Continue To Expand Criminal Investigations Against Employers Who Knowingly Hire Large Numbers Of Illegal Aliens.  Arrests by U.S. Immigration and Customs Enforcement for criminal violations have increased from 24 in FY 1999 to a record 716 in FY 2006.  There have been 742 criminal arrests since the beginning of FY 2007 (through July 31), and there is anecdotal evidence that companies are taking notice and adjusting their business practices to follow the law.
  • 14.   The Administration Will Commence a Rulemaking Process To Require All Federal Contractors And Vendors To Use E-Verify, The Federal Electronic Employment Verification System, To Ensure That Their Employees Are Authorized To Work In The United States.  The Federal government ought to lead by example.  As there are more than 200,000 companies doing Federal business, this will significantly expand use of E-Verify, and make it more difficult for illegal immigrants to obtain jobs through fraud.
  • 15.   The Administration Will Help States Make Greater Use Of E-Verify.  Some States already mandate the use of E-Verify by some or all of their hiring agencies, and other States are considering similar requirements.  The Administration will assist such efforts through outreach and offers of technical assistance.
  • 16.   The Administration Will Bolster E-Verify By Expanding The Data Sources It Can Check.  This will make it easier to catch individuals who commit identity theft.  New sources of data will include cross-checks of visa and passport information.

    Click Here to read the new rules.
News Flash! Beaufort County Plans to Audit I-9s

Beaufort County South Carolina will likely move forward with its mass audit of businesses’ immigration records given that the immigration bill failed in the U.S. Senate. The county intends to audit the records of 25% of the county’s businesses, 1300 businesses, by examining each business’s I-9s to look for fraud.

For more info see "The Daily News" 7/2/07

  States and Localities Attempt Immigration Reform

While the Federal Government has consistently failed to deliver on immigration reform, many state and even local governments have chosen to act for themselves.  Thirty-two states have enacted immigration related bills, while over fifty local governments are considering legislation. Emphasis on employer compliance is a major component in the battle to define a strategy for controlling illegal immigration. For companies with locations in multiple states, the issues become quite complex as laws vary from state to state, and even city to city, across the country. 

 

The Lookout Monitor is monitoring these changes, and working to keep you informed about developments which might affect your enterprise.  Our state-by-state breakdown of recent legislation related to worksite enforcement provides valuable information for those hiring in certain states or localities.

 

Legislation By State

Arizona: (3/07) Payson, Arizona, passed a new ordinance that says that businesses who knowingly hire illegal workers will lose their business license and will have to pay a fee to reinstate it. Any employer who wants to apply for or renew a business license must state sign an affidavit stating that it its workers are legal. The ordinance will go into effect on July 1, 2007; however, businesses that apply for a license or apply to renew a license must sign such an affidavit now.
California: (7/06) Town of Apple Valley resolution requires all holders of town business licenses to comply with the Immigration Reform and Control Act of 1986 which prohibits the hiring of illegal workers. Inserts a checkbox statement for all business license applicants agreeing to abide by the1986 act. Possible Revocation of business license for violators of the agreement. The city of Mission Viejo (3/07) passed an ordinance that requires that the city and any contractors that do business with the city verify that any new (potential) employees are legally eligible to work by participating in the federal government’s Basic Pilot Program.  In this program, employee social security numbers are submitted to the government which checks to ensure that names and numbers match.   The ordinance will go into effect in July.
Colorado: HB 1343 (6/6/2006) Prohibits state agencies from hiring contractors who knowingly hire undocumented workers, Basic Pilot Program must be used to verify contractor’s labor force. HB 1001 (7/31/06) Contractors must verify the work status of their employees before applying for economic development incentive awards. HB 1015 (7/31/06) Employers must withhold 4.63% from the wages of an employee lacking a validated Social Security number, a validated taxpayer ID number or an IRS-issued taxpayer ID for non-resident aliens. HB 1017 (7/31/06) Employers must examine the work status of each new employee within 20 days of hire and retain proof that an employee’s status is legal. Hiring of unauthorized workers may result in fines up to $5,000 for the first offense.  The state maintains the right to audit and verify employer records.

Georgia: SB 529 (4/17/06) Mandates that public employers and their subcontractors participate in the Basic Pilot verification program.  Authorizes the state to work with DHS and other federal agencies to enforce immigration law. Specifies that undocumented employee compensation over $600 a year may not be used as an allowable business expense. Requires six percent state withholding tax for all nonresident aliens. (12/5/06) Cherokee County adopted  a resolution   which mandates Basic Pilot participation for county  employees, as well as contractors that do business with the county. Contractors applying for contracts with Cherokee County must provide documentation of participation in the Basic Pilot program.  

Idaho: Governor Risch Signs Executive Order Mandating Basic Pilot For State Agencies And Some State Contractors. The Governor of Idaho signed an Executive Order Dec. 13th, 2006 which mandates that all state agencies, contractors and subcontractors of the state use the Basic Pilot program to verify new hires. HB 577 (3/11/06) Unemployment benefits limited to U.S. citizens and legal residents only.

Kansas: (1/4/2008) Kansas to consider Arizona-serious legislation in the upcoming session, which will, among other things, mandate E-Verify for ALL new hires in the state, public or private. HB 2157 (3/23/06)) Limits unemployment benefits and employment protection status to citizens and those whose immigration status is legal.

Louisiana: SB 753 (6/23/06) Allows state agencies to investigate a contractor’s hiring policies if seemingly warranted. DA may issue orders to fire undocumented workers, and levy fines as applicable.

Missouri: (7/17/06) City of Valley Park passed ordinance which denies city contracts to businesses that hire illegal workers. Temporary ban in effect for enforcing the ordinance until suit against the city is resolved.

New Jersey: (7/06) City of Riverside passed Illegal Immigration Relief Act bans the hiring and housing of undocumented immigrants.

New York: (9/17/06) Suffolk County law requiring businesses that do business with the county to certify in sworn affidavit that their workers are legally eligible to work in the U.S.
Oklahoma: (10/06) Town of Inola passed ordinance making it illegal to hire undocumented workers, and requiring all employers within city limits to participate in the Basic Pilot program as a condition for contracting work from the city. Fines and loss of city contracts intended towards violators.Oologah (10/06) Resolution fines employers of illegal workers. Has no enforcement procedure. Tulsa (9/06) Resolution passed condemning the hiring of illegal workers. Has no enforcement procedure.

Pennsylvania: HB 2319 (5/11/2006) Defines illegal alien as one who violates federal immigration law, yet is a paid employee in the state. Prohibits the use of illegal labor in government contracted or related jobs. City of Hazleton’s Illegal Immigration Relief Act (7/12/06) denies business licenses to companies that employ illegal workers. (10/31/06)Voided by U.S. District Judge (7/26/07) City of Bridgeport approves Illegal Immigration Relief Act, prohibiting illegal employment, allowing for revocation of business licenses for employers that hire illegal workers.Altoona (9/06) City passes "City of Altoona Undocumented Alien Control Act". Applicants for business licenses must affirm that they do not hire illegal workers. Revocation of license and fines for violators.Mahanoy City, (8/06) Illegal Immigration Relief Act subjects employers that knowingly hire illegal workers to fines.

South Carolina: (12/27/06) County of Beaufort passed Illegal Immigration Relief Ordinance. which would fine businesses that hire illegal workers and mandate Basic Pilot participation for city contractors and their subcontractors. Pickens County (10/2/06) County adopts ordinance stating that it will not do business with employers that hire illegal workers. Dorchester County (1/22/07) Anti-Illegal Immigration Ordinance requiring county contractors to sign an affidavit, on a form designated by the County, attesting to the fact that they do not hire illegal workers. The county will be able to audit the records of local businesses to ensure compliance.  Failure to comply could result in revocation of license.

Tennessee: HB 111 (6/1/2006) prohibits contractors from contracting with state agencies within one year of the discovery that the contractor employs illegal immigrants.

Washington: SB 6885 (3/9/06) Disallows labor performed by nonresident aliens from the definition of employment when establishing unemployment insurance benefits.