RECOG
NIZIN
G &
REDU
CING
LIABILITY IN AN
I-9 AUD
IT
Sathab Abbo, Corporate Immigration Counsel & Sr. Product Director Melissa Prentice, Executive Sales Manager
1i9advantage.com
RECOGNIZING & REDUCING YOUR LIABILITY IN AN I-9
AUDITThank you for joining us! Today's webinar is hosted by:
AGEN
DA
Your Roadmap to Form I-9
Why I-9 Noncompliance May Cost You Millions
ICE Audits & Raids
Enforcement & Trends
The Pitfalls of Paper I-9
Options for Cleansing I-9 Forms
Remote Hiring Trends & Requirements
Remote Hiring Hazards
Employer’s Obligations
E-Verify
Best Practices
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What’s There To Talk About?
i9advantage.com
WH
AT IS FORM
I-9?
• Verifies identity and employment authorization of people hired to work in the U.S. – citizens AND noncitizens.
• Required for every person hired after November 6, 1986.
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Your Roadmap to Form I-9
• Contains 3 Sections:• Section 1 - Completed by Employee.• Section 2 - Completed by Employer.• Section 3 - Completed by Employer for rehire or re-verification.
• Employee completes Section 1 on or before 1st day of hire. • Employer (or its agent/representative) examines original documents and completes
Section 2 within 3 business days, after the day of hire (3 day rule). • NO exception for Remote Hires.• Employee attests to his or her employment authorization, and presents the employer with
acceptable documents evidencing identity AND employment authorization.
i9advantage.com
FINES AN
D PEN
ALTIESWhy I-9 Noncompliance May Cost you Millions
Scenario 1 Employer has 1,000 I-9 Forms, at a 68% error rate and average of $600 fines/form. 680 x $600 = $408,000 in fines.
Hiring violations: $375 to $16,000 per violation - with higher penalties for repeat offenders.Form I-9 violations: $110 to $1,100 per violation.
ICE penalty considerations 1. Size of the business2. Good faith effort to comply3. Seriousness of violation4. Violations involving unauthorized workers5. History of previous violations
Recent PenaltiesCalamari's III Inc. (2013): $24,000 (only 5 suspect documents)Pureview LLC (2013): $30,000 (only 21 suspect documents)Macy’s (2013): $275,000GPX (2013): $279,000Grand America Hotels (9/2014): $2,000,000Infosys (2013): $34,000,000
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CIVIL FINES AN
D CRIM
INAL PEN
ALTIES FOR FO
RM I-9
VIOLATIO
NS
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Civil ViolationsFirst Offense Second Offense Third Offense
Minimum Maximum Minimum Maximum Minimum Maximum
Hiring or continuing to employ a person, or recruiting or referring for a fee, knowing that the person is not authorized to work in the United States.
$375 per worker.
$3,200 per worker.
$3,200 per worker.
$6,500 per worker.
$4,300 per worker.
$16,000 per worker.
Failing to comply with Form I-9 requirements. $110 per form.
$1,100 per form.
$110 per form.
$1,100 per form.
$110 per form.
$1,100 per form.
Committing or participating in document fraud. $375 per worker.
$3,200 per worker.
$3,200 per worker.
$6,500 per worker.
$3,200 per worker.
$6,500 per worker.
Committing document abuse. $110 per violation.
$1,100 per violation.
$110 per violation.
$1,100 per violation.
$110 per violation.
$1,100 per violation.
Unlawful discrimination against an employment-authorized individual in hiring, firing, or recruitment or referral for a fee.
$375 per violation.
$3,200 per violation.
$3,200 per violation.
$6,500 per violation.
$4,300 per violation.
$16,000 per violation.
Asking an employee for money guaranteeing that the employee is authorized to work in the United States, also called an indemnity bond.
• Pay $1,100 for each bond the employee paid to the employer.
• Refund the employee the full amount of the bond. If the employee cannot be found, this refund will go to the U.S. Treasury.
Criminal Violations First Offense Second Offense Third Offense
Engaging in a pattern or practice of hiring, recruiting or referring for a fee unauthorized aliens.
• Up to $3,000 per unauthorized alien.
• Up to 6 months in prison for the entire pattern or practice.
• Up to $3,000 per unauthorized alien.
• Up to 6 months in prison for the entire pattern or practice.
• Up to $3,000 per unauthorized alien.
• Up to 6 months in prison for the entire pattern or practice.
How Fines Add Up…
i9advantage.com
WH
AT’S THE RISK?
Are You At Risk of An ICE Audit?
ICE has cast a wide net – staffing agencies, IT companies, restaurants, non-profits, retail, construction, ethnic stores, bakeries, manufacturing companies, food packaging, janitorial services, catering, and many more…
ICE: The integrity of I-9 records is as important as that of tax records.
When deciding who to prosecute, lack of or defective I-9 Forms are a “smoking gun” for ICE.
If you receive an ICE Notice of Inspection (NOI): you only have 3 business days to produce original I-9 forms.
Do not destroy any documents, attachments, old I-9 Forms, or company records once a NOI is received.
Hire counsel – (Immigration and Criminal Defense).
I.C.E
YES!! Every Employer Is.
HSI (Homeland Security Investigations) conducts audits to protect employment opportunities for nation's lawful workforce and to target businesses that knowingly employ unauthorized workers.
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WH
AT IS ICE UP TO
AND
WH
AT CAN W
E EXPECT?Enforcement and Trends
2007 2008 2009 2010 2011 20120
500100015002000250030003500
250 503
14442000
24963000
ICE I-9 Audit Trends
Major shift in policy/enforcement.Bush: more raids, building lock-downs, interrogating workers, and deportations.Obama: fewer raids, more audits, investigations and fines, targeting employers (more criminal/civil liability on employers).
Audits increasing each year.Fines increasing each year:
FY 2003 – 2008: $1.5 million in fines.FY 2009 – 2012: $31.2 million in fines.
States are pushing for mandatory E-Verify.Rise in DOJ’s Office of Special Counsel (OSC)
investigations for unlawful discrimination.
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ARE YOU
R PAPER FORM
I-9S COM
PLIANT?
Incorrect info? Missing signatures, date, or checkboxes? Missing forms altogether? Originals examined? Have forms been re-verified? Valid ID documents reviewed? Old I-9s purged according to 1/3 year rule? Keeping copies of photo IDs for E-Verify?
The Pitfalls of Paper I-9s
Legacy I-9s: Are they compliant? If not, you’re at risk.
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CHO
OSIN
G TH
E RIGH
T COM
PLIANCE SO
LUTIO
NOptions For Cleansing I-9 Forms
Good (Manual Correction) – Auditing and correcting by hand on a large scale is time consuming with high labor costs. Note: Same person auditing will not detect errors.
Better (Electronic Detection with Manual Corrections) – System scans I-9 forms and reports errors, so manual corrections can be made. Note: 3rd party review is better.
Best (Auto-cleanse) – System scans I-9 forms, detects errors, and presents a review of electronic corrections to employer and employee. Products automatically resolve overwhelming majority of I-9 errors, so employers can make their active I-9 forms totally compliant using relatively limited time, effort, and expense. Note: 3rd party review with standardized process is best.
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KNO
W TH
E RULES O
N REM
OTE H
IRING
Remote Hiring Trends and Requirements
Remote Hire Requirements
Employers can designate authorized Agent to fill out Forms I-9 on behalf of company (Personnel Officers, Foremen, Agents, Attorneys, or Notary Public, etc.)
DHS doesn’t require authorized Agent to have specific agreements or other documentation for Form I-9 purposes.
Notary Public acts as authorized Agent of the employer, not as notary. No notary seal on Form I-9.
Authorized Agent must physically examine original documentation for Section 2 with employee physically present.
Employer is still liable for any violations in connection with the form or the verification process.
Trending in 2014
20%-30% of US companies hire remote staff to work from home as call center agents.
34M Americans work from home. By 2016, expected 63M+ or 43% of US workforce.
Companies are developing processes to hire and successfully build a team of remote employees.
10i9advantage.com
AVOID
THESE REM
OTE H
IRING
DANG
ERSRemote Hiring Hazards
Scenario 2A recent audit of a company with 90% remote hires found over-documentation or insufficient documentation, and the Agent’s company name and/or addresses were used in lieu of the Employer’s name and address.
Operating without Standard Operating Procedures (SOP) or Remote Hire User Guides.Scrambling to quickly locate qualified/professional Notaries in the area.Notary Scheduling Glitches. Who’s meeting whom? Where and when?
Using Skype or Webcam for examining original documents.Accepting document copies or faxes.Using Untrained Agents. Screen and train your remote network to ensure they understand Form I-9 procedures, or have an electronic system in place to guide Agents in the I-9 process.
WH
AT’S YOU
R ROLE IN
THIS?
• Frees up storage space. • Reduces exposure to risks, fines, and penalties.• If audited, companies are liable for errors on old I-9s also.• Fewer I-9s to be concerned about with regard to compliance.
• The form must always be available for inspection by authorized U.S. Government officials – DHS, OSC, DOL, or DOJ.• Cannot discriminate or request specific documents For I-9.
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Employer’s Obligations
• Cannot hire people without valid work authorization.• 3 yr & 1 yr Retention Rule: Employers must
“retain and store” Form I-9 for 3 yrs after the date of hire OR for 1 yr after termination, whichever is later. • Purging old I-9 forms as a best practice:
i9advantage.com
ENH
ANCIN
G AN
D IM
PROVIN
G TH
E I-9 PROCESS
• Not used for current employees (except for Federal Contractors).• Cannot discriminate or terminate for tentative nonconfirmation.• Cannot use E-Verify or I-9s to pre-screen candidates.• Enrollees must E-Verify all new employees for that worksite.• Considered a best practice by many immigration experts.• Recent enhancements:
• Duplicate Case Alert• Validation of E-Mail and Phone Number • Further Action Notice (FAN) Revision for Web Services
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E-Verify
• Compares employee’s I-9 data to DHS and SSA databases. • Designed to ensure that documentation presented is valid.• Mandatory Employee SSN (or can be hired, and submitted
later). • Instant Verification of Employment Eligibility.
i9advantage.com
Audit Your I-9s – often and early.
Create and implement internal training (including I-9 responsible officer), compliance program, and plan of action.
Use electronic I-9 system (tracking, error proof, audit trail, reporting).
Best Practices
3 and 1 year rule: Purge old I-9s for terminated employees (3 years after date of hire or 1 year after termination) – whichever is later.
Document your I-9 policy – How and when forms are done, storage, access, reporting, purging.
Tickler notices for expiring work authorization.
Understand E-Verify, use it for new hires, and police your subcontractors.
Copy identity documents - Drivers License, work authorization, green card, etc. (not required by law).
Keep I-9 Forms separate from personnel files.
Best Practices
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STAY INFO
RMED
Resources
M-274: Handbook For Employers: USCIS.gov
USCIS Guidance on Completing I-9 for Remote Hires: USCIS.gov
M-775: E-Verify User Manual for Employers: USCIS.gov
ICE I-9 Penalties Chart: ICE.gov
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Let's Recap
i9advantage.com
Get compliant to avoid HEFTY fines.Be prepared for an ICE Audit.Audit and clean your paper I-9 Forms.Know the remote hiring rules and hazards.Follow best practices, including an electronic I-9 system.
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Contact Us
Sathab Abbo
Sr. Product Director
Corporate Immigration Counsel
800.724.8546
This document is not intended to provide legal advice. It contains general and public information. Any employer facing possible civil or criminal charges resulting from I-9 non-compliance is encouraged to consult an attorney.
i9advantage.com
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Presenter:Melissa Prentice,Executive Sales Manager
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A LEADING EDGE PROVIDER
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100% Cloud-Based Form I-9 & E-Verify® Solutions
Walk-Up Usability Our system is easy to use and intuitive, making anyone an I- 9 expert.
Increase Efficiency and Productivity Our software solutions reduce the time spent processing Form I-9s by 75%.
Integrate With Your HR Platform Seamlessly integrate with your existing HR, and enjoy accessibility and single sign-on from a wizard-driven platform.
Instant E-Verify® SubmissionInstantly submit to E-Verify® with customized options for each user, and Receive TNC notifications (Tentative Non-Confirmation) immediately.
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Anyone Can Become and I-9 Expert
• Create error-proof I-9s and eliminate the risk of government fines with precise data validation and error-checking.
• Streamline your I-9 process and reduce the risk of employee discrimination with a standardized process.
• We maintain the most up-to-date and compliant software by working closely with the Department of Homeland Security, and our software development team, to stay ahead of ever-changing regulations.
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• Attempting to self-correct archived Form I-9s will increase your risk of fines.
• I-9 Medic™ eliminates the risk of human error, and preparation time for an audit, from weeks to minutes.
• I-9 Medic™ eliminates the guesswork and ambiguity of how to amend a failed I-9, by thoroughly error-checking & guidance to the user on compliantly correcting each Form I-9.
Digitally Correct and Convert Historical Paper Form I-9s
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• 100% paperless and mobile-enabled, I-9 Remote™ reduces the processing time of Form I-9s remotely from days to minutes.
• Use an authorized company agent, or one of 12,000 trained notaries available nationally through our Partner Notary Network.
• Notaries trained on the I-9 Remote™ system are proficient in accurately completing Form I-9s, and will travel to your location to meet your new hire.
Remote Hiring Made Easy
i9advantage.com
ANSW
ERS!Answers to Commonly Asked Questions
FORM I-9
Q: What is I-9 compliance software?A: Electronic completion of USCIS’ Form I-9, with compliance, retention, reporting, and audit
tracking capabilities.
Q: Can we really get rid of our paper?A: Yes! Our solution is 100% paperless.
Q: We already have electronic I-9s; why do we need yours?A: Is your system a “compliance software solution,” or merely an electronic solution? I-9
Advantage products are both - electronic compliance software solutions.
Q: We are currently using an on-boarding tool to manage our I-9s. Is your product the same? A: Is your system compliant, or simply electronic? Our system is more than an electronic
solution. It goes one step further to ensure that the data entered is compliant and meets the requirements of USCIS’ Form I-9.
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ANSW
ERS!Answers to Commonly Asked Questions
E-Verify®
Q: We use E-Verify®; isn’t that the same thing as I-9?A: NO! 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. Form I-9 is used for verifying the identity and employment authorization of individuals hired for employment in the United States. Not all U.S. employers are required to use E-Verify, whereas all U.S. employers must ensure proper completion of Form I-9 for each individual they hire for employment in the U.S.
Q: If we choose to use your product, do we still need E-Verify?A: Yes (example: E-Verify employer, Federal Contractor, mandatory state).
24i9advantage.com
ANSW
ERS!Answers to Commonly Asked Questions
REMOTE HIRING
Q: For remote hires, we wouldn’t want to use authorized agents. Is that compliant? Don’t we always need to use notaries?
A: No. If the employer is unable to complete Section 2 of the I-9, s/he may elect to use:1. An Authorized Agent (trusted source) that you or your employee have chosen2. A notary from our notary network (acting as a trusted source)
Q: We don’t feel comfortable allowing new hires to choose their own representative. Can’t they do something fraudulent?
A: Our software ensures the compliance of information being keyed into the system. As the responsible party you still have complete control to view the documentation provided, as well as the completed form I-9.
Q: Your remote hire process sounds very much like our current paper process, as we are using notaries. What’s the advantage?
A: Our process delivers a comprehensive compliance software versus standard paper process, which is subject to human error, omissions, and oversights. The software ensures compliance and consistency with each form.
25i9advantage.com
CLIENT SNAPSHOT | 1,000+ CLIENTS TRUST I-9 ADVANTAGE™
26i9advantage.com
Contact Us
800.724.8546
i9advantage.com
This document is not intended to provide legal advice. It contains general and public information. Any employer facing possible civil or criminal charges resulting from I-9 non-compliance is encouraged to consult an attorney.
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Thank you for joining us! We look forward to seeing you at our upcoming webinar.
