Effective July 1 2010, the State of Utah requires all employers with 15 or more employees to use an electronic verification system to confirm work authorization under the Private Employer Verification Act. In an effort to keep our members updated with the complexities of this regulation change please read the information below.
This document includes the following 3 items.
· Draft Letters for you to use should you want to require your suppliers/vendors/contractors to comply with IRCA (I-9 compliance)
· A contradiction (uncovered by ABC member company ) between Utah’s Private Employer Verification Act and the federal laws surrounding E-Verify & the SSA’s SSNVS (there are more so please conact Tracy Dragas at 801-924-1400 if you have any questions.)
· Updated Employee Handbook Policies
LETTERS TO/FROM COMPANIES WHO REQUIRE THEIR SUPPLIERS/VENDORS/CONTRACTORS COMPLY WITH THE IMMIGRATION REFORM AND CONTROL ACT.
These are general draft letters intended to provide you with general information, if you have unique requirements (special industry, Federal or State Contractors, etc.), please contact directly at 801-924-1400
UPDATED I-9 & E-VERIFY POLICIES FOR YOUR EMPLOYEE HANDBOOK
Immigration Law Compliance: Company Name is required to comply with the Immigration Reform and Control Act of 1986. The Company may not hire anyone who is not a citizen of the United States or is not authorized to work in the U.S. As a condition of employment, all new and rehired employees must complete the Employment Eligibility Verification Form I-9 and must show valid proof that they are eligible to work in the United States (this requires presenting documentation which establishes both identity and employment eligibility within three (3) days of their hire date.)
E-Verify: Company Name uses and complies with E-Verify in accordance with State and Federal Guidelines. Effective July 1, 2010, the State of Utah requires all employers with 15 or more employees to use an electronic verification system to confirm work authorization under the Private Employer Verification Act.
E-Verify is an Internet-based system that compares information from an employee's Form I-9, Employment Eligibility Verification, to data from U.S Department of Homeland Security and Social Security Administration records to confirm employment eligibility of their newly hired employees.
E-Verify works by allowing participating employers to electronically compare employee information taken from the Form I-9 (the paper-based employee eligibility verification form used for all new hires) against records in federal government databases.
E-Verify requires the Company to complete several fields, these fields follow the Form I-9, beginning with the employee's citizenship attestation, document type(s), then biographical information including name, date of birth, Social Security number and Alien or I-94 number (if a noncitizen). In some cases, the document number and expiration date are also required.
Generally, if the information matches, the Company receives an "Employment Authorized" response for that employee in E-Verify. If the information does not match, the Company and the employee are given an opportunity to resolve the problem. If E-Verify cannot initially match the information, the Company will be prompted to review and correct the information if necessary.
If the Company receives a TNC, the employee must decide whether to contest it. A “tentative non-confirmation” or TNC, requires the employee to contact the appropriate agency to resolve the mismatch within eight federal government work days from the referral date. To resolve a Social Security Administration TNC, “SSA TNC,” the employee must visit an SSA office and bring the referral letter and required documentation. To resolve a Department of Homeland Security TNC or “DHS TNC,” the employee must call the number listed on the referral letter. While the case is pending, the Company will not take any adverse action against the employee because of their status in E-Verify.
E-VERIFY IS THE SYSTEM WE RECOMMEND OUR MEMBERS USE
E-Verify is the only electronic verification system that is approved by the DHS and is the system we recommend ABC Utah member companies use to verify employment eligibility. The laws surrounding the use of E-Verify are still very new and the litigation resulting from these laws and rules are being hotly debated nationwide.
We would like to point out a contradiction in Utah’s new Private Employer Verification Act (PEVA) which will be required for covered employers in the State of Utah effective July 1, 2010. (see excerpts of the Act below.)
The highlighted sections below indicate an employer covered under Utah’s PEVA may use the Social Security Administration’s Social Security Verification Number Service in order to comply with PEVA, however, the SSA clearly states that the SSNVS may NOT be used for any purpose other than verifying a social security number for wage reporting purposes..
Section 1. Section 13-47-101 is enacted to read:
CHAPTER 47. PRIVATE EMPLOYER VERIFICATION ACT
Enrolled Copy S.B. 251
Part 1. General Provisions 13-47-101. Title.
This chapter is known as the "Private Employer Verification Act."
13-47-201. Verification required for new hires.
(1) A private employer who employs 15 or more employees as of July 1, 2010, may not hire a new employee on or after July 1, 2010, unless the private employer:
(a) is registered with a status verification system to verify the federal legal working status of any new employee; and
(b) uses the status verification system to verify the federal legal working status of the new employee in accordance with the requirements of the status verification system.
(2) This section does not apply to a private employer of a foreign national if the foreign national holds a visa issued in response to a petition by the private employer that is classified as H-2A or H-2B.
63G-11-103.
(4) (a) "Status verification system" means an electronic system operated by the federal government, through which an employer may inquire to verify the federal legal working status of an individual who is a newly hired employee.
(b) "Status verification system" includes:
(i) the electronic verification of the work authorization program of the Illegal Immigration Reform and Immigration Responsibility Act of 1996, 8 U.S.C. Sec. 1324a;
(ii) a federal program equivalent to the program described in Subsection (4)(b)(i) that is designated by the United States Department of Homeland Security or other federal agency authorized to verify the employment eligibility status of a newly hired employee pursuant to the Immigration Reform and Control Act of 1986;
(iii) the Social Security Number Verification Service or similar online verification process implemented by the United States Social Security Administration; or
(iv) an independent third-party system with an equal or higher degree of reliability as the programs, systems, or processes described in Subsection (4)(b)(i), (ii), or (iii).
According to the Social Security Administration, Business Services Online, Social Security Number Verification Service
SSNVS should only be used for the purpose for which it is intended.
• SSA will verify SSNs and names solely to ensure that the records of current or former employees are correct for the purpose of completing Internal Revenue Service (IRS) Form W-2 (Wage and Tax Statement).
• It is illegal to use the service to verify SSNs of potential new hires or contractors or in the preparation of tax returns.
• It is appropriate to use SSNVS only once an official employer-employee relationship has been established. SSA defines the existence of an employer-employee relationship as when one of the following has occurred:
o The employer’s offer of employment and acceptance by the person being hired (even though he/she hasn’t started working); and /or
o The future employee’s completion of the paperwork to establish the payroll record.
• Company policy concerning the use of SSNVS should be applied consistently to all workers; for example:
o If used for newly hired workers, verify information on all newly hired workers.
o If used to verify information on other workers, verify the information for all other workers.
• Third-party use of SSNVS is strictly limited to organizations that contract with employers to either handle the wage reporting responsibilities or perform an administrative function directly related to annual wage reporting responsibilities of hired employees. It is suggested that contracts between the third-party and the employer stipulate that the functions being performed by the third-party contractor adhere to the proper use of SSNVS. It is not proper to use SSNVS for non-wage reporting purposes such as identity, credit checks, mortgage applications, etc.
• Anyone who knowingly and willfully uses SSNVS to request or obtain information from SSA under false pretenses violates Federal law and may be punished by a fine, imprisonment or both.
• SSA may ban you and/or the company you represent from the use of SSNVS if SSA determines there has been misuse of the service.
• SSA returns all names and SSNs submitted. If the name and SSN does not match our records, SSA advises the following:
o This response does not imply that you or your employee intentionally provided incorrect information about the employee's name or SSN.
o This response does not make any statement about your employee's immigration status.
o This response is not a basis, in and of itself, to take any adverse action against the employee, such as laying off, suspending, firing or discriminating against the employee.
Please take the necessary steps to make sure your company is in compliance. If you need any additional information ABC will be holding an E-Verify/I-9 Requirements seminar on July 20 for more information