| When Michael Young* received a "No Match
| |
| | been emerging in the small and mid-market
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| Social Security" letter from the Social
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| | business sector in the area of Human
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| Security Administration, he discounted
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| | Resources Outsourcing. Small employers
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| it, as he had always done in the past. As
| |
| | recognize their limitations when it comes
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| the owner of Growing Expectations*, a
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| | to compliance in the areas of employment
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| small landscape design company in
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| | liabilities and human resource policies,
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| Southern California, he was too busy
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| | and the new undocumented worker laws will
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| hiring employees, processing payroll and
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| | continue to help this trend gain
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| managing his insurance obligations. "I
| |
| | momentum.
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| receive letters like this [from the SSA]
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| | In an HR Outsourcing relationship, the
|
| all the time. I just don't have the time
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| | employer engages the services of a
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| to verify the information they need. So,
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| | professional firm and hands over many
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| I usually just disregard them." While
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| | aspects relating to the management of
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| this attitude may have sufficed in the
| |
| | their employment responsibilities. These
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| past, times have changed.
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| | areas can include:
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| GROWING CALIFORNIA RISKS
| |
| | Â- Labor law compliance
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| With the firestorm still raging in
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| | Â- Employment administration
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| Congress over the status of illegal
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| | Â- Management training and development
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| immigrant workers, several new
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| | Â- Employee health benefits
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| regulations have been passed by the Bush
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| | Â- Risk Management
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| Administration to crack down against
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| | Â- Insurance services
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| employers who violate newly enforced
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| | Â- Recruiting
|
| laws. As of September 14, 2007, The
| |
| | Â- Payroll and Tax services.
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| Department of Homeland Security began
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| | In some instances, only specific, select
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| increasing enforcement efforts and
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| | functions are outsourced. In other
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| levying larger fines against employers
| |
| | situations, organizations see the value
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| who employ undocumented workers. The DHS
| |
| | in outsourcing the entire human resource
|
| is enforcing its new guidelines for
| |
| | package and entrust the HR Outsourcing
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| employers who receive "No Match" letters
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| | firm with all the functions.
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| from the Social Security Administration.
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| | CPEhr - A CALIFORNIA COMPLIANCE EXPERT
|
| A No Match letter is issued when tax
| |
| | One such firm is CPEhr, one of
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| documents submitted for an employee do
| |
| | California's oldest and largest
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| not match the information on file at the
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| | independently owned HR Outsourcing and
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| SSA. In the new guidelines, the DHS
| |
| | Professional Employer Organization (PEO)
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| states that improper handling of No-Match
| |
| | companies. Founded in 1982, CPEhr has
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| letters may indicate knowledge by an
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| | over 25 years of experience assisting
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| employer that a worker is illegal, and
| |
| | California-based employers in human
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| may lead to civil or criminal enforcement
| |
| | resource and labor law compliance. In
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| action.
| |
| | response to the new undocumented worker
|
| In early July, the Bush administration
| |
| | regulations, CPEhr has begun offering
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| announced that employers who knowingly
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| | customized services to help small
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| employ undocumented workers may be
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| | employers comply with the new laws and
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| eligible for fines up to $12,500 and a
| |
| | avoid non-compliance penalties.
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| felony prosecution. On the state level,
| |
| | With years of experience dealing with the
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| the number of laws against illegal
| |
| | SSA and the Immigration and
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| immigrants has more than doubled since
| |
| | Naturalization Service (INS), CPEhr
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| 2006, to over 170.
| |
| | creates and implements aggressive I9 and
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| These new guidelines present employers in
| |
| | employment verification policies,
|
| California with an even greater challenge
| |
| | responds to No Match Letters and
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| than employers in the rest of the nation.
| |
| | corresponds with the SSA and INS on its
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| Consider the following statistics:o
| |
| | clients' behalf.
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| California has the largest unauthorized
| |
| | Peter Escalante, a Human Resources
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| population of any state-almost 2.5
| |
| | Consultant with CPEhr, summarizes CPEhr's
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| million, almost a quarter of the nation's
| |
| | compliance process. "First, we check all
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| unauthorized immigrant population.o The
| |
| | employee files for valid I9s and confirm
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| percentage of undocumented workers was
| |
| | they are stored in a separate folder,
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| almost twice as high in California (6.9
| |
| | away from their personnel file," explains
|
| percent) as in the rest of the United
| |
| | Escalante. "Then, if a client gets a
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| States (3.6 percent).o There are about 1
| |
| | notice from the SSA, they forward them to
|
| million unauthorized immigrants in the
| |
| | CPEhr. We check the letter against their
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| Los Angeles metropolitan area, almost
| |
| | information on file, and if the
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| double the number of any other metro
| |
| | information is incomplete, we request
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| area. In 2004, about two-fifths (41
| |
| | completed documentation. If they didn't
|
| percent) of California's unauthorized
| |
| | have them we would have recommend
|
| immigrants resided in Los Angeles.o
| |
| | terminating the employee if they could
|
| Almost all unauthorized immigrant men
| |
| | not provide the proper documentation in a
|
| work. The employment rates are
| |
| | timely manner."
|
| substantially higher for undocumented
| |
| | CPEhr recommends that all employers have
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| male employees than for legal immigrant
| |
| | an undocumented employee policy included
|
| or U.S.-born men.o In California, 94
| |
| | in their Employee Handbook. In it, the
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| percent of unauthorized men age 18-64
| |
| | employee acknowledges that if their
|
| were in the labor force in 2004, versus
| |
| | Social Security Number is challenged by
|
| 84 percent of legal immigrants and 82
| |
| | the SSA, they have 30 days to produce
|
| percent of native-born men.
| |
| | valid documentation, or be fired. This
|
| (Source: "The Characteristics of
| |
| | type of involvement by the employer is
|
| Unauthorized Immigrants in California,
| |
| | extremely valuable, says Escalante, when
|
| Los Angeles County, and the United
| |
| | faced with an investigation or fine by a
|
| States". By: Randolph Capps, Karina
| |
| | governmental agency.
|
| Fortuny)
| |
| | "If an agency finds the employer to be
|
| It is clear that the new laws will have a
| |
| | proactive in any regard, they will be
|
| greater impact on California employers
| |
| | more forgiving and typically reduce the
|
| than on employers in any other state.
| |
| | severity of the penalty," he notes. "The
|
| HR OUTSOURCING - A HOPE FOR CALIFORNIA
| |
| | government realizes employees have rights
|
| EMPLOYERS
| |
| | and employers can't just fire them. They
|
| The average small to mid-sized California
| |
| | are understanding of employers who have
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| employer faces the greatest risks posed
| |
| | policies in place and show an effort to
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| by the new regulations. While large
| |
| | cooperate."
|
| corporations typically have the
| |
| | Only time will tell precisely how the new
|
| infrastructure in place to address No
| |
| | legislation and its enforcement will
|
| Match letters and make the proper
| |
| | impact the California business climate.
|
| employment decisions, small employers are
| |
| | However, in the interim, employers must
|
| less equipped to tackle these newfound
| |
| | take a proactive role in addressing the
|
| liabilities. The risk of non-compliance
| |
| | new responsibilities. While the process
|
| is substantially greater for them than
| |
| | may be complex, it is their good fortune
|
| with their larger counterparts.
| |
| | that HR Outsourcing firms such as CPEhr
|
| Over the past decade, a visible trend has
| |
| | are here to help them through it.
|
