Federal Government Announces that Implementation of E-Verify Requirement for Federal Contractors Delayed Until June 30, 2009

Barran Liebman Electronic Alerts
Electronic AlertSM
Volume 12, Issue 15
April 17, 2009

On April 16, 2009, the federal government issued yet another delay in the implementation of the new E-Verify requirement for federal contractors. The E-Verify requirement is now scheduled to become effective on June 30, 2009.

The details of the new E-Verify requirement were discussed in two previous alerts, here and here. To summarize, current law requires that all employers complete an Employment Eligibility Verification Form (Form I-9) for each newly hired employee. (Don't forget that you must now be using the revised Form I-9 as discussed in another recent alert.) The purpose of the Form I-9 is to verify the employee's identity and employment eligibility. The new rule requires that federal contractors enter the employee's identity and eligibility information into the E-Verify system, an internet-based employment eligibility database. E-Verify must be used for work on all federal contracts awarded after June 30, 2009, that call for a time of performance that exceeds 120 days and that have a value greater than $100,000. Contracts for commercially available items and subcontracts of less than $3,000 are exempt from the requirement.

The new requirement was initially scheduled to go into effect on January 15, 2009. Two delays followed, one pushing the implementation date back to February 20, 2009, and the second to May 21, 2009.

We will keep you posted if additional delays are announced.

Electronic Alerts are written by Barran Liebman attorneys for their clients and friends. Alerts are not intended as legal advice but as employment and labor law announcements. www.barran.com ©Barran Liebman LLP

One-on-One Growth

As the world economy shudders and contracts, businesses across the globe are struggling to come to terms with the changing economic landscape. Financial collapse, layoffs and work shortages have rippled across national borders, dominating our media and our thoughts. Employees and managers alike are worried about the health of their company and wonder about their likelihood of retaining their positions. In an atmosphere ripe with rumor, uncertainty and fear, there is no better time for one-on-one meetings between managers and their employees.

Monthly one-on-one meetings between employees and managers serve to develop not only the employee, their manager and their relationship, but the organization as well. Employees have the opportunity to share their frustrations, challenges and triumphs. Managers have a chance to hear their employee’s concerns and provide feedback and development opportunities. Ironically, current conditions may create increased opportunities for employees. With shrinking staff and resources, many employees are being asked to stretch and grow in directions that wouldn’t previously been possible. Such growth inherently demands more support from the organization.

In today’s climate of tumult and anxiety, the rumor mill is flying. One-on-one meetings also serve as an opportunity for both parties to air and respond to deeper concerns about the health of the industry or company and communicate transparently. Managers owe it to their employees to really listen to their anxieties and answer questions with the truth, as much as possible. There is a great deal we don’t know right now about what the future holds, and it is advisable to honestly communicate both what steps management is taking to stay on top of the company’s economic health as well as the uncertainty we are all feeling. Open and honest communication, even if the news is bad, is more important now than in any previous business climate.

When business is booming, it will be just as important to maintain these meetings, tempting as it may be to lay them aside in favor of the optimistic assumption that things are going smoothly and “no news is good news!” When playing soccer we not only want the rules, we want to know the big picture and most importantly, where the goal line is. Good managers continually remind their employees of overarching individual and organizational goals, providing achievable objectives to strive toward. Through one-on-one meetings, managers have the opportunity to continually support their employees, helping both the employee and company develop and grow.

By Molly Kelley
Xenium

IRS Clarifies COBRA Subsidy Rules

The COBRA Subsidy is continually evolving. In a notice published March 31, 2009, the IRS addresses a number of significant issues resulting from the new COBRA Subsidy. Most important, the new notice clarifies the term “involuntary termination” and how the COBRA premium reduction is calculated. For example, when an employee accepts a severance package rather than face the prospect of an announced reduction in force or when an employee quits rather than accept a position with significantly reduced hours, the termination of employment will be considered “involuntary” for purposes of the COBRA subsidy. Click here to read the full notice: http://www.irs.gov/pub/irs-drop/n-09-27.pdf.

Are you a current Xenium client? Contact your HR Account Manager with any questions regarding the current COBRA regulations.

Not a Xenium client? Click here to purchase the Xenium COBRA Subsidy Survival Kit or contact Brandon Laws at Brandon.Laws@Xeniumhr.com or call (503) 612-2009 for more information. Our kit provides employers with an easy-to-understand explanation of the regulations and notification requirements under the new COBRA subsidy requirements.

Just Around the Corner: The Revised Form I-9

(Thank you to our partner, Jordan Schrader PC for sharing this alert.)

The U.S. Citizenship and Immigration Services (USCIS), a department of the Department of Homeland Security, will implement the revised Form I-9 beginning April 3, 2009. All employers that hire or rehire employees on or after April 3, 2009 must begin using the revised Form I-9.

In preparation for the use of the revised Form I-9, USCIS has also issued a revised Handbook for Employers, Form M-274. The revised handbook should be reviewed and used by persons that manage the employer's Form I-9 compliance. The revised handbook has numerous examples of the documents which are acceptable for establishing the identity and employment eligibility of new employees. It also contains detailed instructions for completing the Form I-9.

Employers should take note of major changes in the revised Form I-9. These changes become effective on April 3, 2009, and were first announced in December 2008. The changes include:

• Expired documents will no longer be acceptable, i.e., expired U.S. Passport, state-issued driver's license, or ID card;
• Some immigration documents have been removed from the approved list, i.e., Employment Authorization Document that contains a photograph and bearing form numbers I-688, I-688A, or I-688B;
• New U.S. Passport Card is an acceptable List A document; and
• Passports from the Federated States of Micronesia (FSM) or the Republic of the Marshall Islands (RMI) with Form I-94 or I-94A indicating nonimmigrant admission under the Compact of Free Association between the United States and the FSM or RMI are now acceptable List A documents.

Detailed explanations of each document and the proper procedures for completing the Form I-9 can be found in the revised Handbook for Employers. Employers should ensure that they begin using these new, revised materials beginning April 3, 2009.

Obtain a copy of the revised Form I-9 here.

Download a copy of the revised Handbook for Employers, Form M-274.