Employment Law E-Newsletter—Volume 10
Tax Credits for Hiring Veterans
President Barack Obama has proposed $120 million in new tax credits for businesses that hire U.S. veterans returning from Iraq and Afghanistan at a time of stubbornly high unemployment at home. His proposed new "Returning Heroes Tax Credit" gives $2,400 to companies for each veteran they hire who has been unemployed for less than six months and $4,800 for those unemployed for half a year or more, administration officials said. The existing "Wounded Warriors Tax Credit" – paid out for hiring wounded veterans – would be doubled to $9,600 for taking on someone unemployed for six months or longer. The bill will require congressional approval and be funded from the existing budget.
New NLRB Posting Rule
Last December, the National Labor Relations Board (NLRB) issued a proposed rule requiring that all employers covered by the National Labor Relations Act (NLRA) post a notice that details employees' rights under the Act. Despite numerous objections, the NLRB published its Final Rule on August 26, 2011, and it becomes effective November 14, 2011. The rule applies to virtually all private-sector employers and requires posting the notice regardless of whether their employees are currently represented by a union.
The notice lays out employees' rights, stating that they have the right to act together to improve wages and working conditions, to form, join and assist a union, to bargain collectively with their employer, and to refrain from any of these activities. It further provides examples of unlawful employer conduct and instructs employees how to contact the NLRB with questions or complaints.
ICE Steps Up Employer Enforcement
The U.S. Citizenship and Immigration Services has announced stepped up enforcement directed at employers. It has notified 1,000 employers to get ready for I-9 audits. The I-9 Form must be completed within three (3) business days of the employee's start date and retained – for three years or until one year after the employee terminates, whichever is later – for every employee hired after November 6, 1986.
The I-9 form is intended to verify two separate things: (1) that the person is who s/he says s/he is (identity); and (2) that the person is authorized to work in the United States. The documents which are acceptable for these purposes are listed on the back of the I-9. Documents in List A may be used to establish both identity and right to work. Otherwise, documents from List B establish identity and those from List C establish right to work. Note that the employee must produce ORIGINAL documents. The employer cannot accept copies. However, the employer should (is not required to) make copies of the documents presented and retain them with the I-9. (This will enable you to prove down the road that you actually did get documents.)
The new enforcement emphasis is demonstrated by a fine of $1,1,047,110 assessed against clothing retailer Abercrombie & Fitch for "technology- related deficiencies" in the company's Michigan retail stores' electronic I-9 verification system.
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