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2011 Texas Nonprofit SummitHR Compliance and Enforcement for 2011,[object Object]
Introductions ,[object Object],Human Resources Consulting Group,[object Object],Padgett, Stratemann & Company, L.L.P. ,[object Object],Address agency representation,[object Object]
Agenda,[object Object],I-9s and E-Verify,[object Object],Department of Labor,[object Object],Employees, Interns, Volunteers,[object Object],Independent Contractors,[object Object],Exempt vs. Non-exempt,[object Object],ERISA,[object Object],OFCCP,[object Object]
ICE,[object Object],Immigration Customs Enforcement (ICE),[object Object],Principal investigative arm of the U.S. Department of Homeland Security ,[object Object],2nd largest investigative agency in the federal government ,[object Object],More than 20,000 employees in offices in all 50 states and 47 foreign countries ,[object Object],Annual budget of more than $5.7 billion dollars ,[object Object]
Headlines ,[object Object],For the current fiscal year (October 2010), ICE has audited 2,338 employers,[object Object],On Wednesday, June 15, 2011, 1000 employers in US notified of I-9 inspection,[object Object],Enforcement strategy has shifted to employers,[object Object]
Headlines – National ,[object Object],WHO: Abercrombie & Fitch,[object Object],WHAT: Settlement for more than $1.04 million,[object Object],WHERE: Michigan ,[object Object],WHEN: September 2010  ,[object Object],Things To Consider:,[object Object],Technology related deficiencies in electronic I-9 system ,[object Object],No instances of knowingly hiring unauthorized individuals ,[object Object],Employment verification process serious,[object Object],* Source: www.ice.gov/new/releases,[object Object]
Headlines – Texas,[object Object],WHO: Lone Star Bakery ,[object Object],WHAT: 200 of 500 employees laid off at 2 plants due to not having proper documentation,[object Object],WHERE: China Grove, TX,[object Object],WHEN: February 2011  ,[object Object],Things to Consider:,[object Object],Several employees had been with the company 15 years,[object Object],Social security numbers not matching to names ,[object Object],Impact on company business ,[object Object],* Source: Express News,[object Object]
Recent Changes To The I-9,[object Object],New I-9 Form ,[object Object],Revision date of 08/07/09 ,[object Object],Expiration date of 08/31/12,[object Object],Modification to I-9 Form (Final Rule Implemented 4.14.11),[object Object],All documents must not be expired ,[object Object],Documents containing no expiration are deemed to be expired ,[object Object],Changes to list of acceptable documents ,[object Object],Adds a 4th box to the form – Non-citizen nationals of the US ,[object Object]
Recent Changes To The Handbook ,[object Object],Purpose of Handbook: Help employers understand the Form I-9 process ,[object Object],Purpose of Handbook Revision to address the following:,[object Object],Regulations regarding electronic storage and retention of forms,[object Object],Questions regarding processing an employee with “complicated immigration status” (USCIS) ,[object Object],Revised “Handbook for Employers” (M-274) as of 1/5/2011 ,[object Object],Last update occurred in July 2009 ,[object Object]
Recent Changes To The Handbook ,[object Object],What’s New:,[object Object],Visual aids for completing the Form I-9 ,[object Object],Examples of USCIS documents ,[object Object],Expanded guidance on processing employees in H-1B status or     H-2A status ,[object Object],Expanded guidance on extensions of stay for employees with temporary employment authorization ,[object Object],Additional Q&A,[object Object]
Things to consider,[object Object],Every organization, regardless of status, has exposure,[object Object],It’s not just about hiring undocumented workers, it is also about completing the I-9 form timely and correctly,[object Object],Sometimes the attempts a correction make things worse,[object Object]
E-Verify ,[object Object],	E-Verify is an Internet based system that compares information from an employee’s Form I-9, Employment Eligibility verification, to data from the U.S. Department of Homeland Security and Social Security Administration records to confirm employment eligibility. ,[object Object],[object Object],Specifically designed to verify employment authorization ,[object Object],Does not provide protection from worksite enforcement  (ICE),[object Object],Different than the SSNVS and the TNEV,[object Object],According to ICE – more than 225,000 employers use E-Verify, with about 1,000 new businesses signing up each week. ,[object Object]
E-Verify,[object Object]
E-Verify ,[object Object],Why?,[object Object],Deters document and identity fraud ,[object Object],Helps maintain a legal workforce ,[object Object],Protects jobs for authorized workers ,[object Object]
E-Verify,[object Object],Who?,[object Object],As of September 8, 2009, federal contractors with contracts containing E-Verify clause must use E-Verify ,[object Object],Prime contracts contain FAR E-Verify Clause ,[object Object],Value above $100,000,[object Object],Period of performance of 120 days or more ,[object Object],At least some of the contract work performed in US ,[object Object],Clause flows down to all tiers of subcontractors ,[object Object],Prime is responsible for ensuring clause is included in qualifying subcontracts ,[object Object],Subcontracts ,[object Object],Value of more than $3,000 ,[object Object],Contract is for commercial or noncommercial services or construction ,[object Object]
E-Verify,[object Object],When?,[object Object],Timeframes of enrollment vary ,[object Object],30 calendar days of Contract Award Date or Contract Modification Date,[object Object],Enrollment decisions,[object Object],Who will sign the MOU,[object Object],Which hiring sites, company locations ,[object Object],Who will have access,[object Object],Who will be designated program administrator ,[object Object]
E-Verify,[object Object],Determining who to verify,[object Object],Existing employees – entire workforce ,[object Object],All new hires and existing employees assigned to the contract,[object Object],When to verify,[object Object],Begin entering Form I-9 information within 90 calendar days of enrolling or updating organization designation,[object Object],If entire workforce within 180 calendar days of enrolling or updating organization designation,[object Object],Once beginning to enter Form I-9 information for new hires, enter no later than the 3rd business day after the employee’s start date,[object Object]
E-Verify ,[object Object],Unless you are a Federal Contractor with FAR E-Verify Clause only use E-Verify to verify new hires,[object Object],For a contract with the FAR E-Verify clause awarded on or after September 8, 2009 ,[object Object],Verify all existing employees working on the contract,[object Object],Verify all new employees hired after the date of enrollment in E-Verify ,[object Object],OR,[object Object],Verify entire workforce ,[object Object]
E-Verify,[object Object],Important Take Aways,[object Object],Doesn’t cost to participate, but….,[object Object],Not based on number of employees but amount of contract,[object Object],Rules vary for those using E-Verify ,[object Object],Documents accepted,[object Object],Example – If employee present a document from List B, a document is required with a photograph ,[object Object],Poster requirement ,[object Object],Should I participate if not required?,[object Object],Advantages vs. Disadvantages vs. Compliance ,[object Object]
E-Verify – Here and Coming Soon,[object Object],E-Verify website redesigned ,[object Object],E-Verify Video – How to run a case, Understanding E-Verify, Know Your Rights ,[object Object],Passport matching capability,[object Object],Legislation introduced by Representative Lamar Smith (R-Texas)- Legal Workforce Act (H.R. 2164)-would improve E-Verify System, make it mandatory for all employers and would repeal I-9 system ,[object Object]
DOL-Fair Labor Standards Act,[object Object],The Fair Labor Standards Act-about who is an employee  and how you have to pay them,[object Object],Employment is defined as “to suffer or permit to work.”,[object Object],Minimum wage, overtime and child labor,[object Object]
DOL-Fair Labor Standards Act,[object Object],Intern,  Trainee, or Volunteer?,[object Object],Interns,[object Object],DOL Fact Sheet #71 ONLY addresses “For Profit” (except for footnote).  To be a trainee and exempt from minimum wage and overtime, ALL the following must be met:,[object Object],Internship, even if though it includes actual operation of the facilities of the employer, is similar to training that would be given in an education environment;,[object Object],The internship is for the benefit of the intern;,[object Object],The intern doesn’t displace a regular employee, but works under close supervision of existing staff;,[object Object],The employer that provides training derives no immediate advantage from the activities of the inter; and on occasion its operations may be impeded;,[object Object],The intern is not necessarily entitled to a job at the end of the internship; and,[object Object],The employer and the intern understand that the intern is not entitled to wages for the time spend during the internship.,[object Object]
DOL-Fair Labor Standards Act,[object Object],Intern,  Trainee, or Volunteer?,[object Object],Volunteer,[object Object],DOL indicates :  “Individuals who volunteer or donate their services, usually on a part-time basis, for public service, religious or humanitarian objectives, no as employees and without contemplation of pay, are not considered employees of the religious, charitable or similar non-profit organizations that receive their service.,[object Object],Examples-Presenting a job skills workshop at a shelter; parents assisting in the school library, driving and delivering food to the elderly; a camp counselor in a youth program,[object Object],Volunteers may receive nominal compensation-fee or other compensation cannot be greater than 20% of the amount that would otherwise be paid to a full-time employee,[object Object]
DOL-Fair Labor Standards Act,[object Object],Intern,  Trainee, or Volunteer?,[object Object],Conclusions,[object Object],We still wait for additional guidance,[object Object],Evaluate the work the individual will be doing,[object Object],Document the terms of the agreement,[object Object],When in doubt, at least pay minimum wage,[object Object]
Independent Contractor or Employee?,[object Object],Misclassification of independent contractors ,[object Object],TWC selecting accounts for audit ,[object Object],Insure proper reporting of wages and taxes for employment purposes,[object Object],Request to review 1099’s and time cards ,[object Object],IRS has increased focus ,[object Object],Unpaid taxes,[object Object],DOL,[object Object],Missed overtime,[object Object],Minimum wage,[object Object],Benefits,[object Object]
Independent Contractor or Employee?,[object Object],Check your independent contractor status ,[object Object],Permanency of relationship ,[object Object],Degree of control ,[object Object],Degree of skill ,[object Object],Investment in business ,[object Object],Opportunity for profit/loss ,[object Object]
Exempt vs. Non-Exempt,[object Object],DOL Fair Labor Standards Act,[object Object],Employees and classifications -,[object Object],Salary test ,[object Object],Duties test ,[object Object],Primary duties ,[object Object],Exercise discretion and independent judgment ,[object Object],Administrative Exemption is most commonly litigated,[object Object],Bonus and Regular rate of pay for non-exempt employees,[object Object],Travel and training time,[object Object]
DOL 	Agenda,[object Object],In 2010 regulatory agenda – proposed strategy to require employers to “find and fix” legal violations ,[object Object],No longer – “catch me if you can” ,[object Object],Plan – identify and resolve risks of legal violations ,[object Object],Prevent – fully implement plan that prevents legal violations ,[object Object],Protect  - objectives to be met on a regular basis for actual prevention,[object Object]
ERISA,[object Object],Federal law that sets standards for most pension and health plans in private industry (governmental entities, churches are exempt),[object Object],Overarching principal is to provide protection for those in the plan,[object Object],Responsibilities include:,[object Object],Providing participants with plan information to include plan features and funding; (includes an Summary Plan Description and Summary Annual Report,[object Object],Fiduciary responsibilities for those who manage and control plan assets;,[object Object],Requires plans to establish a grievance and appeals process for participants to get benefits from their plans;,[object Object],Gives participants the right to sue for benefits and breach of fiduciary duties.,[object Object]
ERISA,[object Object],Responsibilities include (cont’d):,[object Object],*COBRA-20 or more employees,[object Object],HIPAA,[object Object],Newborns’ & Mothers’ Health Protection Act-requires insurance to cover a minimum 48 hour hospital stay following childbirth,[object Object],Mental Health Parity Act-mental health covered to be covered like medical surgical benefits with respect to lifetime and annual limits (doesn’t apply to substance abuse/chemical dependency; doesn’t apply to small employer w/2-50  employees; doesn’t apply if the application of parity increases the cost of the plan by at least 1%),[object Object],Women’s Health and Cancer Rights Act-protections for individuals who elect breast reconstruction in connection with a mastectomy; and must cover certain post-mastectomy benefits,[object Object]
ERISA,[object Object],Responsibilities include (cont’d):,[object Object],5500 Reporting,[object Object],Annual Informational report sent to DOL (who also provides it to the IRS),[object Object],Required of  pension plans, to include 403(b),[object Object],Welfare benefit plans with 100 or more ,[object Object],Self-funded; self insured welfare benefit plans of any size,[object Object],Due by the seventh month following end of the plan year; 2 ½ month extension permitted (but must apply),[object Object],Must be filed electronically,[object Object]
IRS,[object Object],National Review Program in 2 year,[object Object],Additional IRS agents to perform these “reviews” ,[object Object],Reviews will target industry groups to include Non-Profits,[object Object],Reviews to include:,[object Object],Worker classification,[object Object],Fringe Benefits,[object Object],Officer compensation,[object Object],Reimbursed expenses,[object Object],Agents taking a HARD LINE approach in enforcement,[object Object]
OFCCP,[object Object],Charged with enforcing the contractual promise of affirmative action and equal employment opportunity required of those who do business with the Federal Government,[object Object],General rule for affirmative action plans is 50 employees and $50,000 or more in contracts,[object Object]
OFCCP,[object Object],Increased focus on Veteran’s Affirmative Action Plan,[object Object],Policies ,[object Object],Focus on recruitment of hiring of veterans,[object Object],Move towards statistical analysis for numerical targets,[object Object],Increased focus on Disabilities Plan ,[object Object],Policies,[object Object],Move towards accommodations for applicants – ex. online application system,[object Object],Disability outreach,[object Object],Increased review on pay equity,[object Object]
Take-Aways: Doing More With Less,[object Object],Invest time in compliance-agencies have increased enforcement activities,[object Object],Do it right the first time; there is always a potential cost of mistakes,[object Object],Take advantage of what you are already paying for,[object Object],It may be better to pay now, than pay later,[object Object],Risk of audit could come from your employees ,[object Object]
Questions,[object Object]
Contact Information,[object Object],Cyndi Mergele, SPHR, PI,[object Object],Padgett, Stratemann & Co., L.L.P.,[object Object],SAN ANTONIO,[object Object],100 NE Loop 410, Suite 1100,[object Object],San Antonio, Texas  78216-4704,[object Object],210.828.6281,[object Object],AUSTIN,[object Object],811 Barton Springs, Suite 550,[object Object],Austin, Texas  78704-1149,[object Object],512.476.0717,[object Object],www.Padgett-CPA.com,[object Object]

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HR Update with Cyndi Mergele

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Notas del editor

  1. More than 1,000 restaurants in the US
  2. Authorized – able to work Tentative Nonconfirmation DHS Verification in ProcessEmployee has 8 workdays to clear up discrepancy
  3. Also verify those existing contracts where the period of performance extends at least 6 months after September 8, 2009
  4. State Continuation applies for plans subject to Texas Insurance laws and rules; and must have been in plan for 3 consecutive months; generally coverage applies for 6 months
  5. State Continuation applies for plans subject to Texas Insurance laws and rules; and must have been in plan for 3 consecutive months; generally coverage applies for 6 months