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BUDGETARY IMPACT OF
CRACKDOWN ON ILLEGAL HIRING
 New rules issued by the
Department of Homeland
Security will have a ripple effect on all associations by driving up their
operating expenses. It will also have a direct impact on associations with
employees.
Undocumented Workers. Under federal law, it is illegal to knowingly employ an
undocumented worker or to continue to employ any worker who is not eligible to
work in the United States. Effective September 14, 2007, employers must fire
workers who cannot verify their work eligibility.
No-Match Letters. Workers who provide false social security numbers on
their W-2 forms to qualify for a job will
result in a mismatch in Social Security Administration records. Under the new
crackdown, the Agency is expected
to send out "no-match" letters affecting more than eight million workers.
Penalties. Employers who receive a no-match letter will have 90 days
to resolve discrepancies. If the discrepancies cannot be resolved, the employee
must be fired. Employers who continue to employ workers with mismatching numbers could
face criminal prosecution and fines up to $11,000 per
worker.
Budgetary Impact.
The enforcement of immigration laws will likely result in a smaller pool of
employees for security guards, valet, landscapers, painters, janitorial workers, maintenance
personnel,
etc. As a result, associations and their vendors will be forced to pay higher wages to
attract employees. This means associations should plan for increases in their budgets in
coming years.
RECOMMENDATION: Employers must check
work eligibility for every new hire,
not just immigrants. If after completing the
Form I-9 the employee’s
information cannot be verified, employers must fire the newly hired employee.
Associations with employees that receive a "no-match
letter" for existing employees should consult legal counsel on how to avoid liability. The Social Security Administration provides a
way for employers to
verify Social Security numbers
online.
Sincerely
yours,
Adrian Adams, Esq.
Adams Kessler PLC |
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