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

Form I-9 and E-Verify:

Current Requirements,
Anticipated Changes,
and Solutions

December 6, 2011

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

Presenters

Mary Poquette Thomas Brechtel
Chief Compliance and Security Officer Executive Vice President, Business
Verifications, Inc. Development
763.420.0606 Form I-9 Compliance, LLC
mary.poquette@verificationsinc.com 949.640.4949
tbrechtel@formi9.com


Discussion

 Comparison
 Current Requirements
 Legislative Landscape
 ICE Enforcement
 Solutions to Mitigate Risk


Polling Question # 1

Does your company currently use
the E-Verify system?
• Yes
• No, but considering it
• No, and not considering it
• I don’t know


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


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 E-Verify: Is a Process
• Required by Federal Law • Inconsistently Required
• Very Limited Exceptions • Required for most Federal
Contractors; required in various
states for some/all employers
• Documents Right To Work • Confirms Right to Work
• SSN Not Required • SSN Required*
• Independent of E-Verify • Dependent upon Form I-9
• Employee/Employer are • SSA/DHS Databases are
Information Sources Information Source
• Electronic and Paper Options • Web-Based Electronic Process
• Record Retention Required • 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

1.70%

Confirmed as Authorized
to Work
Initial Mismatch

98.30%

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



Are you adequately prepared for an
ICE audit?

• No
• Yes
• Unsure


SOLUTIONS

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

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 © 2011 Verifications, Inc.
23
December 6, 2011 - 23

DECISION
EXISTING NEW HIRES
EMPLOYEES POINT
I-9 AUDIT

ELECTRONIC IMPLEMENTATION DATE
ELECTRONIC FORM I-9
1. IDENTIFY ALL ERRORS, OMISSIONS AND
1. ERROR-DETECTING
DISCRERPANCIES
2. AUTOMATED EXPIRING DOCUMENT ALERTS
2. IDENTIFY MISSING AND PURGABLE I-9’S
3. SECTION 3 UPDATES
3. IDENTIFY EXPIRED DOCUMENTS THAT REQUIRE
UPDATING 4. TERMINATION/PURGE CAPABILITIES
4. STEP-BY-STEP CORRECTION INSTRUCTIONS

EMPLOYER REMEDIATION
1. I-9 CORRECTION PROCESS COMPLETED 1. EMPLOYMENT ELIGIBILITY VERIFICATION
2. ALL I-9 CORRECTIONS (AS ALLOWED BY LAW) 2. SEAMLESS “ONE CLICK” SUBMISSION
INITIALED AND DATED IN:
3. NO E-VERIFY TUTORIALS OR TESTING REQUIRED
 SECTION 1 – EMPLOYEE
4. E-VERIFY EMPLOYER AGENT
 SECTION 2 & 3 - EMPLOYER

ELECTRONIC CAPTURE & ELECTRONIC CAPTURE &
STORAGE STORAGE
1. SCANNING AND INDEXING PROCESS 1. 24/7 ACCESS TO EMPLOYEE RECORDS
2. AUTOMATED EXPIRING DOCUMENT ALERTS 2. CUSTOMIZED REPORTING
3. TERMINATION/PURGE CAPABILITIES 3. TERMINATION/PURGE CAPABILITIES
4. 24/7 ACCESS TO EMPLOYEE RECORDS 4. MISSING I-9 REPORTS
5. REPORTING

END RESULT IS A COMPLIANT I-9 DATABASE

When was the last time your
organization completed an external
“third party” audit of your existing
I-9 Forms?
• Within the last year
• Over 1 year ago
• Never

© 2011 Verifications, Inc. 25 December 6, 2011 - 25

EXISTING EMPLOYEES

26 © 2011 Verifications, Inc. December 6, 2011 - 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


Audit – Step 2

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 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?
COMPLIANCE@VERIFICATIONSINC.COM


Learn More

• Take advantage of special discounts on management
services, auditing services and scanning of paper I-
9s. Contact your Account Manager, E-mail
sales@verificationsinc.com 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.


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


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

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