Who:  All employers

What: New Federal regulations on employee verification

Where: Nationwide

When: September 14, 2007

Why (you should care): Increased administrative burdens and potential fines and penalties

 

Estimates vary, but it is believed that there are anywhere from 7 to 12 million undocumented immigrants in the United States. In fact, over the past 15 years, the United States has seen an influx of immigrants (legal or otherwise) in numbers not seen since the turn of the 20th Century.

 

Despite making immigration reform a centerpiece of his domestic agenda, President Bush was unable to push through reforms that would have allowed more qualified, legal workers into the country and would have taken steps to better enforce border security. The collapse of comprehensive immigration legislation has pushed the Administration to get tough on undocumented workers via regulatory means.

 

In August the Secretary of Homeland Security, Michael Chertoff, announced that the federal government is expected to bring a record number of enforcement proceedings against employers in the coming year. In addition, the Administration unveiled new regulations tightening employer requirements for verifying the legal status of employees.

 

On September 14, 2007, new employment verification provisions will take effect. The new regulations will require all employers to take affirmative steps to verify employees whose social security numbers do not match federal records. Under the new regulations, an employee will have 93 days to correct any mismatched information used for employment verification. If the employee is unable to correct the information on the government’s no-match letter, the employer must terminate the employment relationship or risk being in violation of federal immigration law and face substantial fines and penalties. The regulations and verification process are discussed in greater detail on CAI's Political Heads-Up page.

 

In addition to increasing the administrative burden on employers and the risk of fines and penalties, these stepped up verification requirements also hold the potential for widespread workforce disruptions as millions of undocumented workers get caught in the tightening regulatory net. For perspective, it could be like taking the population of Ohio out of the workforce. With an already tight labor market, many employers can expect further challenges in finding and keeping qualified employees.