The government is certainly holding businesses more and more accountable for major issues. Their focus in 2011 is I-9’s and Independent Contractor designation.
1.
I-9 Audits on the Rise in Obama Administration
I-9 Audits on the Rise in Obama Administration Immigration raids have decreased and the number of I-9 audits has risen dramatically in the first two years of the Obama administration, according to immigration attorneys.
“In the past two years, the Obama administration has significantly changed the direction ofImmigration and Customs Enforcement’s worksite efforts,” Kevin Lashus, an attorney with Greenberg Traurig says. “The Bush administration was interested in taking the highest numbers of unauthorized workers into custody during any time frame. The Obama administration, on the other hand, is interested in targeting the employers that hired them.”
While Immigration and Customs Enforcement (ICE) in the Bush administration locked down buildings and herded workers into interrogations and ultimately onto planes for removal, the Obama ICE has increased administrative fines and paper audits—after which employers are asked to dismiss unauthorized workers, Lashus said. Criminal prosecutions of employers also have risen under the Obama administration, he added.
Instead of raids, the Obama administration has focused its efforts on auditing and investigating employers to determine if they are satisfying the Form I-9 requirements and are knowingly or unwittingly employing illegal workers.
The fines for simple Form I-9 violations range from $110 to $1,100 per violation, with the higher range applicable to employers with a higher percentage of mistakes. Employers with large workforces that fail to properly manage the Form I-9 process can face fines of hundreds, or even millions, of dollars. Employers and their managers also can face criminal prosecution if they deliberately neglect their legal responsibilities in this area.
2.Independent Contracting – Big Changes On the Horizon
Independent Contracting – Big Changes On the HorizonIt’s estimated that employee misclassification cost the United States government $2.72 billion in tax revenue from Social Security, unemployment, and income taxes in 2006 alone. That was four years ago.
This lost revenue is the driving force behind a flood of federal legislation that will enable the government to crack down on employee misclassification and discourage employers from misclassifying employees. Employers should be aware of pending legislation and prepared for its ramifications.
First, Congress is entertaining new federal legislation that will make misclassification of independent contractors an “independent” violation of federal law. Under the current Fair Labor Standards Act, misclassification alone does not subject an employer to liability. Rather, the employee has to show not only that he/she was misclassified, but that he/she actually worked overtime or was paid less than minimum wage. The new law, called the Employee Misclassification Prevention Act (EMPA), would change this by imposing hefty penalties ($1,100 for each initial misclassification; $5,000 for each persistent or willful violation) on employers for simply misclassifying, regardless of overtime or minimum wage.
Significantly, EMPA would also:
•Establish civil monetary penalties for employer recordkeeping violations;
Establish civil monetary penalties for employer recordkeeping violations;•Create a legal presumption that if an employer fails to keep accurate records, the individual is an employee; and
Create a legal presumption that if an employer fails to keep accurate records, the individual is an employee; and•Notify workers of their right to proper classification under federal law.
Notify workers of their right to proper classification under federal law.There also is a joint initiative between the DOL, IRS and 39 states to share information to target employer audits for unemployment insurance and misclassification purposes.
Recently, Forbes unveiled its newest list – "America's Best Small Companies 2010",which led our Managing Director, Eric Swenson, to wonder: What criteria did the magazine use to determine the “best small companies”?
His findings - Forbes did a major disservice to small businesses everywhere. Read about it in our "Managing People" blog.
Employee Engagement...Is It Possible?
OK, so it’s a buzzword. But it’s a real opportunity and reality in your business today. “Engagement” is the eagerness employees have for achieving company goals. You must agree that if everyone had this mindset, your team would be more productive, team members would work together more collaboratively and shareholders would be more satisfied with bottom line results, so the question is, how do we make this happen?
1. Set expectations: There is a gap today between owner expectations and what the staff think owner expectations are.
2. Build knowledge: Developing a culture of engagement requires intelligence.
3. Solidify trust: You cannot build engagement by employees unless they build trust. If your employees do not believe in their leaders, they’ll never become fully engaged.
4. You cannot succeed unless people “Stay”: Find out why people are happy (or not). Have them complete surveys, or interviews, and make tactical changes in order to keep your best performers.
Have You Complied With The Non-Harassment Training Requirement?
Important reminder! Employers with 50 or more employees should be aware that 2011 is a training year for supervisors and managers. California's sexual harassment prevention training requirement took effect in 2005, and the law requires training every two years.
Employers with 50 or more employees should plan for providing this training this year to current supervisors and managers. Take note that new supervisors and managers must receive the prevention training within six months of assuming supervisory duties - even if not a training year.
The state regulations implementing the sexual harassment prevention training law define "having 50 or more employees" as employing or engaging 50 or more employees or contractors for each working day in any 20 consecutive weeks in the current calendar year or preceding calendar year. The 50 employee or more threshold includes full-time, part-time, temporary workers and contractors, even those that reside or work outside of California.
U.S. Workplace Violence Reaches Its Lowest Level Since 1993
According to figures released in March 2011 by the Bureau of Justice Statistics, homicides and nonfatal violent crimes have declined in workplaces across the U.S. from 1993 to 2009.
The number of homicides in the workplace decreased by 51 percent over 16 years—from a high of 1,068 homicides in 1993 to a low of 521 deaths in 2009.
While many people think of shootings and physical abuse when they consider workplace violence, the statistics encompass threats and other intimidation and harassing behavior toward a colleague.
Workplace violence overall has been in sharp decline since the mid-1990s, the report said. From 1993 to 2002, the rate of workplace violence fell by 62 percent; it dropped 35 percent from 2002 to 2009.
The decline in workplace violence coincides with a downward trend of violent crime across the United States within the same period.
Among the most dangerous jobs in America, the report said, are law enforcement officer, security guard and bartender. Meanwhile, nearly one-third of all victims of violent death in the workplace worked in sales from 2005 to 2009.
Copyright © 2011 RSJ/Swenson LLC. All Rights Reserved.
All materials, training, and services offered by RSJ/Swenson LLC are offered and sold with the understanding that it is not engaged in rendering legal counseling or other professional service. If legal counseling or other professional assistance is required, the services of a competent practitioner in the relevant area should be sought.
RSJ/SWENSON QUARTERLY NEWSLETTER
HUMAN RESOURCES AND MANAGEMENT NEWS APRIL 2011
APRIL 2011This newsletter, like all materials, training, and services offered by RSJ/Swenson LLC are offered and sold with the understanding that it is not engaged in rendering legal counseling or other professional service. If legal counseling or other professional assistance is required, the services of a competent practitioner in the relevant area should be sought.
At RSJ/Swenson, our mission is to support businesses like yours with training, products and services designed to reduce your liability and simplify your life. We work with you to put together your employee handbook; to ensure you're compliant with state and federal labor laws and practices and provide non-harassment training. Give us a call at 818.461.1874 or visit our web site at www.rsjswenson.com and see how our solutions can benefit your business.
