I-9 Woes

The Immigration and Control Act of 1986 (IRCA) legally mandates that all US employers verify the employment eligibility status of newly-hired employees. Under IRCA, all employees, citizens, and non-citizens hired after November 6, 1986 must complete a Form I-9 at the time of hire. Now, if the employee was hired PRIOR to November 6, 1986 and has been continuously employed by you, they won’t need one. (Note that independent contractors are not subject to the I-9 requirements. However, if you know that the individual lacks work authorization, retaining the contractor will constitute a violation of IRCA.)

There seems to be a lot of confusion surrounding I-9 compliance. Here are some general questions I seem to hear a lot:

1. Is there a timing issue associated with the completion of the I-9? Yes. The form must be completed for each employee within three days of the start of employment. Make sure the employee signs the form. Once the employee has done so, s/he becomes responsible for the accuracy of the information provided.

2. May I copy documents presented as I-9 supporting documentation? The law doesn’t require, nor prohibit copying documents for this purpose. However, if photocopies are made, they must be made for all new hires.

3. What do you do if you have a missing form or documentation? Immediately request that the employee complete a new form and submit supporting documentation. Do NOT post date the document! When an employee cannot provide acceptable documentation, you become aware at that time of the individual’s ineligibility to work. You may be subject to penalties for ‘knowingly’ continuing to employ a worker under such circumstances.

4. Can you fire an employee who fails to produce the required document(s) within three business days? Yes. However, ensure you apply this practice uniformly to ALL employees. If an employee provides a receipt for a replacement document, such as a Social Security Card, they must produce that document within 90 days of the date employment begins.

5. Are there penalties? Yes. If an employer knowingly hires and/or continues to employ unauthorized workers, the penalties can range from $250 to $11,000 per violation. For paperwork that is improperly completed, retained, etc., the fines can range from $100 to $1,100 per individual I-9.

A year ago Abercrombie & Fitch (who seem to have a lot of personnel/HR issues) was fined $1,047,110 for their “electronic I-9 deficiencies.” These fines are from an audit that A&F underwent, and failed, in November 2008 for their stores located in Michigan. Disney Corporation was fined over a quarter of a million dollars for I-9 paperwork violations. Denny's Restaurants Inc. paid fines and retrained managers after the U.S. Department of Justice's Office of Special Counsel conducted an extensive 18 month investigation. The investigation was initiated due to reports that managers at Denny's were requesting specific types of documents from potential employees for I-9 forms. (Remember, employers can NOT specify which documents employees present to establish identity and employment authorization.)

A word of advice, audit your I-9s. Ensure your compliance!

Employee Recognition and Morale

Is employee morale low? Is it in the gutter? Did you know that you can decrease workplace stress and increase productivity just by recognizing your employee's contributions?

Appreciation is a fundamental human need. Employees want to be respected and valued for their contribution. Everyone wants a "pat on the back" to make them feel good. Just a simple "nice job" can turn an employee's day around. If you take steps to recognize your employees' work, you have won half the battle of employee retention. Where there is no recognition, employees may become disinterested in the organization, their job, and the level of attrition may increase.

Jim Harter from the Gallup Organization says it well, “Employee recognition is more important during difficult times than periods of prosperity. Recognition helps people be resilient. Right now, businesses are trying to survive, and to survive you’ve got to have psychological resilience. We need employees who are positive despite the negative situations around them.”

Don't assume your employees should be thankful that s/he has a job. Thankful does not equal a happy or productive employee. There is, unfortunately, a growing trend that employees should just be quiet, do their job, and be thankful they have a job. With unemployment at all time highs and employers leaving vacant positions open for longer periods, employers are asking employees to perform at higher levels, to do more and more.

Recognition is going to create a happy employee. A happy employee = an employee that will think long term, an employee that will become an advocate of the company, an employee that will create happy customers.

Recognizing people for their good work sends an extremely powerful message to the recipient, their work team and other employees. Give it a shot!

2011 Q4 Job Forecast

Career Builder conducted a survey of more than 2,600 hiring managers and human resources professionals from August 16 to September 8, 2011. "While hiring is historically slower in the fourth quarter, recent world events and structurally impaired U.S. economy are causing employers to be a little more guarded," said Matt Ferguson, CEO of CareerBuilder. Caution and seasonality are influencing hiring expectations for the fourth quarter as employers assess ongoing barriers to economic growth and wrap up 2011. Some highlights of the survey:

Education and Skills Gap
Companies are still having a difficult time filling certain positions despite the stiff competition for jobs. 67% of employers expressed concern over the education and skills gap in the U.S. and the corresponding deficit in talent for specialised positions. The top areas employers identified as having a significant skills gap are engineering (37%) and information technology (33%).

Compensation
The survey showed that 41% of employers anticipate no change in salary levels in the fourth quarter compared to the same period last year. 38% expect there will be an increase of 3% or less with 12% expecting their average changes will be between 4 -10% and 1% predict an increase of 11% or more. 4% anticipate a decrease in salaries.

Hiring by Company Size
In a comparison, small businesses will continued to lag behind larger organizations in staffing activity. However, the smaller businesses are less likely to reduce staff levels. Companies with 500 or fewer employers:

• 17% plan to increase full-time, permanent headcount in Q4 (versus 27% in companies with 500+ employees).
• 8% expect to reduce staff levels (versus 11% in companies with 500+ employees).

Those organizations with 50 or fewer employees:

• 12% plan to add new employees
• 8% expect to reduce staff levels

What are your staffing plans in Q4?

FICA Wage Base Increase in 2012

The Social Security Administration has announced that the taxable wage base for the Social Security portion of FICA will increase to $110,100 in 2012. That’s a 3.1% hike over the 2011 wage base of $106,800.

Of the estimated 161 million workers who will pay Social Security taxes in 2012, about 10 million will pay higher taxes as a result of the increase in the taxable maximum.

Except for pretax medical and tax-free fringe benefits, all wages are subject to the 1.45% Medicare portion of FICA, since no wage base applies to Medicare.

Meaningful Career

I'm going to climb down off of the HR fence for just a moment and be "pro-employee."

Is it important for an employee to have a meaningful career?

It is estimated that employees may work 11,000+ days over the course of their life. That's over 30 years. To put it in perspective, imagine that employee doing 30 years in prison. If an employee doesn't have a meaningful career, it's like doing "hard time."

As an employer, steps need to be taken to find out what matters most to the employee. Where do they get their passion? Their drive? What gives them the most pleasure and how can that be translated into developing a meaningful career?

Each individual has something that s/he does extremely well at work. As an employer, we need to identify that "talent." We need to encourage it. We need to grow it. We need to find a way to incorporate that "talent" into the business. Both the business and the employee will profit from this talent.

Take the time to know your employees!

NLRB Change In Deadline

The National Labor Relations Board (NLRB) pushed out the November 14, 2011 implementation date for updated posters. Employers now have until January 31, 2012.

In a statement, the NLRB said that the 2 1/2 month delay was in response to "Queries from businesses and trade organizations indicating uncertainty about which businesses fall under the Board's jurisdiction." In a statement to the Wall Street Journal, an NLRB representative said "many private-sector employers mistakenly think they are excluded "because they don't have a unionized work force."

As we move into 2010, ensure your policies, and postings, are up-to-date!

Worker Classification Settlement Program

On September 21st the IRS and DOL announced a major initiative to "end the business practice of misclassifying employees." The agencies signed new information-sharing agreements with several states that make it easier for both the states and the federal government to go after companies that misclassify workers.

The IRS estimates that up to 80% of independent contractors are incorrectly classified. They predict that this new follow-the-money crackdown will reap at least $7 billion in new federal revenue over the next 10 years. Currently 11 states have signed the agreement with the IRS. Those states are Connecticut, Hawaii, Illinois, Maryland, Massachusetts, Minnesota, Missouri, Montana, New York, Utah and Washington. Will more states follow? It's likely that the answer will be yes.

In addition to the "stick" of enforcement, the IRS is offering a "carrot." IRS announced that it is willing to waive fines and interest penalties for employers that reclassify as employees any workers who they currently misclassify as independent contractors. This partial amnesty deal is part of the new VCSP - IRS Voluntary Classification Settlement Program.

Per the IRS: "The new Voluntary Classification Settlement Program (VCSP) is designed to increase tax compliance and reduce burden for employers by providing greater certainty for employers, workers and the government. Under the program, eligible employers can obtain substantial relief from federal payroll taxes they may have owed for the past, if they prospectively treat workers as employees."

For more information visit: http://www.irs.gov/newsroom/article/0,,id=246203,00.html

When The Boss Is The Bully

I was amazed to find the other day that Working American has an annual contest for the worse boss. Aptly titled "My Bad Boss" some of the entries are astounding. There’s one story about a boss who demoted the office manager when it rained at the company picnic. Really? What a bully.

There are two types of bullies in business. Successful ones and unsuccessful ones. There are leaders who instill the fear of punishment, scorn, and humiliation in their subordinates. Yes, fear can be a powerful motivator, driving people to avoid the sting of punishment and public humiliation.

Robert I. Sutton, PhD states that " . . . followers are driven by both the "sticks" of punishment and humiliation and the "carrots" of hard-won warmth and recognition. One of his "key lessons" in being an effective asshole, "If you demean your people to motivate them, alternate it with (at least occasional) encouragement and praise. Alternate the carrot and the stick; the contrast between the two makes your wrath seem harsher and your occasional kindness seem even sweeter."

RIS posed the question: Why do so many people act like assholes and believe it is generally effective even though there is so much evidence that it is a downright stupid way to act?" Great question and one that begs, no needs, to be answered! When you are in an environment where employees run like cockroaches when they see the boss coming, it's just not healthy! *If anyone out there has an answer to the aforementioned question, please share the answer with me!*

Hey You. Yes, I'm talking to You! Being impolite, rude, nasty, mean, etc. is not crucial to your success.

While bullies inhabit the middle ranks of large concerns, they are positively thriving at small companies. "There are lots of bad bosses out there,' says Atlanta-based management consultant Neil Lewis, Ph.D. "In smaller companies the quality of management is not as good as at large companies. They're not professional managers."

Bullies do a lot of damage in organizations. They make subordinates run scared. They put people in a protective mode, which interferes with the company's ability to generate innovation. Remember, organizations that drive in compassion and drive out fear attract superior talent, have lower turnover costs, and have less dysfunctional internal competition. Companies can gain a competitive advantage by giving their people personal respect, and training them to be effective and humane managers.

So, what do you do when the boss is a bully? Who do you complain to? Even more important, do you complain? It's a delicate situation for everyone involved. For HR, first and foremost provide the distressed employees with an avenue to discuss the allegations. Allow them to realize that they have been heard. A distressed employee needs the opportunity to vent and you need to provide an environment of calmness and provide assurance that is it okay to vent.

Communicate to all employees the expectation to comply with the values of the organization. Make it everyone's responsibility to keep your workplace free from bullying and harassing behaviors.

Avoiding Office Gossip

According to Sam Chapman, author of The No Gossip Zone: A No-Nonsense Guide to a Healthy, High-Performing Work Environment, choosing to avoid the workplace gossip scene starts with you. Some key steps you can take? Well, "simply ask your coworkers to please no longer gossip around you" and second, remove yourself from office gossip. The key is to take ownership for 100% of your job so that "you no longer blame other people for ruining your day, not meeting deadlines, etc."

What are the benefits of being gossip-free?

• No worries about being labeled the office busy-body.
• No need to bother substantiating any scandals.
• No guilt over repeating something deemed untrue later.
• Negative people no longer seek you out.
• Others, hopefully, will follow suit. Your positive attitude will be appealing.

Keep communicating people!

Those Over Qualified Employees

Back some time ago I blogged about the nonsense of being over-qualified for a position. My belief is that people are "fully" qualified, not "over" qualified.

Unemployment is still running about 9% nationally. As a result, people are making lateral or downward moves in their careers. Pew Research Center, in a recent study, indicates that people who lost jobs in this recession are more likely to feel over-qualified in their new positions.

As an employer, be open-minded. These "fully" qualified individuals can be some of the most valuable assets your organization has. How, as an employer, can you fully utilize these assets? Here's a couple of suggestions:

Consider using them as mentors for new employees. The veteran employee will feel as if s/he is making a valued contribution to the organization. The organization benefits as it mines this experience and knowledge.

Value their input. Be open to ideas that are offered voluntarily as well as solicited ideas. These employees may help your organization move in directions you never imagined!

As a manger, avoid harboring notions that overqualified employees want your position. Such feelings hinder effective management!