Jun 19 2008

New Legislation Affecting Contractors

Published by admin at 2:01 pm under hr

It’s going to get harder for illegal workers to find work now that President Bush has signed a new executive order.

Last Monday, the White House announced that they are requiring contractors and others who do business with the federal government to use an electronic system to verify that their workers are eligible to work in the United States.

The system, E-Verify, is operated by U.S. Homeland Security. It allows employers to check the social security numbers of their employees to make sure they are valid. Employers by the thousands are signing up to use the system each week.

Normally when an employee is hired, they are required to fill out an I-9 form and show their accompanying documents. The employer looks over the forms and then determines if the worker is legal.

With E-Verify, contractors will now enter their potential worker’s name and social security number into a computer over the Internet. The system will check government databases to make sure the information is valid and that the number matches the name. If there are discrepancies, that worker is immediately tagged as potentially illegal and the situation must be resolved.

This legislation will surely help crack down on the number of illegal employees in the workforce, but what affect will it have on employers? Those in the construction and trades industry are aware of the high number of illegal immigrants who work every day. These employees are known to work cheaply and for long hours.

Some might say that this well-intended legislation may adversely affect small contractors who depend on low-wage employees to survive in this difficult market. How will this affect your small business?

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