Are Your I-9 Immigration Forms In Order?
The insurance industry is in no way immune from the reach of scrutiny by the government with respect to its immigration practices.
Homeland Security has recently issued a press release stating: “Employers need to understand that the integrity of their employment records is just as important to the federal government as the integrity of their tax files and banking records. All industries, regardless of size, location and type are expected to comply with the law.” Since all U.S. employers are subject to such an audit of workers’ employment eligibility, now more than ever, it is imperative to ensure I9 compliance at your company.
Similarly, the current administration has instructed the Secretary of Labor to investigate the employment of foreign nationals admitted under nonimmigrants visas. As the Department of Labor (“DOL”) ramps up its audits, it is also crucial that employers sponsoring H1B workers for employment have their Public Access Files (“PAF”) in order.
Employers need to be prepared to respond to the increased focus on worksite audits and investigations since failure to follow the law can result in both criminal and civil penalties. ICE penalties for I9 investigations have been substantially increased even for simple mistakes, like paperwork violations. These can cost companies between $216.00 and $2,126.00 per each improper Form I9. Monetary penalties for knowingly hiring and continuing to employ violations range from $375.00 to $16,000.00 per violation. Employers should prepare for increased audits by conducting internal I9 selfaudits to ensure compliance and making sure employees responsible for I9 and EVerify compliance are well-trained and knowledgeable about the company’s protocol in the event of an audit.
Be sure to use the latest form dated January 22, 2017, as there are several prior versions available which will be noncompliant and will result in assessed deficiencies.
The I9 Forms
Under federal law, employers are required to verify the identity and employment eligibility of all individuals they hire, even “obvious” U.S. born persons, and to document that information using the latest Employment Eligibility Verification Form I9. ICE uses the inspection program as part of a comprehensive strategy to address and deter illegal employment.
The new Form I9 Employment Eligibility Verification is in two versions a “smart” PDF version which can be printed and filled out manually.
The PDF I9 has not become solely electronic or mandatory, so once the form is completed on the computer, it still must be printed out and manually signed and dated. Both the smart I9 PDF and the regular paper version I9 PDF can be found on USCIS’ website: https://www.uscis.gov/i-9.
Three notable changes were made to Section 1 (Employee Information and Attestation):
1. “Other Names Used” was replaced with “Other Last Names Used”;
2. Aliens authorized to work may now present an Alien Registration Number or USCIS Number (specifying which number), a Form I94 Admission Number, or a Foreign Passport Number; and,
3. Employees must now indicate whether or not they used a preparer or translator to complete the form.
Two notable changes were made to Section 2 (Employer or Authorized Representative Review and Verification):
1. The employee’s citizenship/immigration status must be input at the top of the Section; and,
2. A box with blank space has been added for “Additional Information,” which may include employment authorization extension notations or notations concerning employee termination.
New employees must still complete Section 1 no later than their first day of work for pay, and that an employer must complete Section 2 of the form no later than the third business day that the employee is working for pay. This is a strict timeline, and an employer’s failure to ensure timely completion of Form I9 will open it up to civil liability.
What Can You Do Now to Prepare?
Because employers now have a heightened risk of being audited by ICE/HSI/DOL, it is increasingly important to make sure your organization’s immigration related documents (e.g., I9 forms, PAF files) are completed correctly. Employers should make sure to identify an individual within the organization that is responsible for compliance. Current procedures as well as processes for record keeping for the compliance period should be reviewed.
With a steady uptick in I9 audits and wage and hour compliance investigations, it underscores how important it is for employers to act today to prevent liability tomorrow as well as develop and maintain the appropriate policies and mechanisms to ensure consistency and reduce the probability of legal liability.
