Gordon A. Carpenter, Attorney and Counselor at Law

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Legal Alerts - Legal Reliefs



No.2 -- August 2008

In This Issue
Be A Poster Child
Aye, Aye -- I-9's
Quick Contacts

508-771-6272 [MA]
 
  401-486-4002 [Cell]

401-453-1700 [RI]

gordon@gacarpenter.com
Greetings!

As I said in my inaugural issue in my business law practice, I come upon information that business owners ought to know -- either to help their business prosper or to avoid a lurking legal problem.

I also said these e-mails woould only be sent when I encounter something important to share with other business owners -- an ALERT to a potential problem or RELIEF to an issue being faced.

The federal minimum wage increased but a week ago!!  That has significant impact on all businesses -- not only those who have employees who earn minimum wage but all employees because of "compensation compression."

The item below expands a bit on this as well as reminding you about notice posting requirements.  Feedback is welcome of course, and if there is an issue you would like me to comment upon, just ask.  I'm only an e-mail away!

I urge each business owner to visit my website where you will find additional items of interest to business owners, includling more Alerts and Reliefs.

Thanks for your attention.

Tuxedo - 3.08Gordon
Be A Poster Child

There's been a recent rash of scare tactics trying to pry unnecessary money out of employers - and if you're smart you don't give it up.

Effective July 24, 2008 there is a new federal minimum wage [going to $6.55 per hour from $5.85]. Both Massachusetts and Rhode Island [and many other states] current requirements are higher, $8.00 and $7.40, respectively. Further federal increases are going to occur again in 2009.

 So?? The new federal wage means NEW POSTER. And that's what the scams are all about - trying to get you to buy posters!!

 Forget it! Yes, you do need to post; you don't need to pay!

 Actually, there are many posters required, both federal and state that need to be where your employees will see them. Use the requirement that you post the new federal minimum wage as the opportunity to update all your posters. [Not to scare you, but in some instances state and federal fines could reach $10,000 or more.]

 So what's required? For federal, they can be downloaded, and for free, from the US Department of Labor. State requirements are also available on the internet. Start here for Massachusettsand here for Rhode Island. Be mindful that some postings may need to be in two languages - English and Spanish.

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My website has much more information about my practice and credentials. Just click and you'll be there.

Aye, Aye -- I-9's
 
While you are pondering over the impact on your business from the federal minimum wage increase, this might be the right time [before you begin losing seasonal employees returning to school, for example] to be sure your personnel records are complete!!

Part of the US response to the recognized immigration and terrorism problems, is to stem the tide of employers hiring illegals - undocumented workers, criminal aliens, whatever they may be called.

 
Employers [size doesn't matter] must now verify the employable status of every employee hired after November 7, 1986 [that's correct, 1986]. And, of course, every new employee (and within three business days of the first work day)!  The law applies to all employers -- not just those which traditionally hire immigrant workers.
 
Do this using a Form I-9
 
They are not filed with the US government, but you had better have them in your employee files [for 3 years from date of hire and 1 year after termination].  The I-9 form lists the acceptable documents (which should be photocopied and retained with the I-9 form in the employee file). The employer needs to verify both identity and eligibility. Some documents (like a U.S. passport) will do both. In other cases, you may need one to verify identity (like state driver's license) and another for eligibility (like a U.S. birth certificate [original or certified]).
 
It gets tricky - never request the documentation before a job offer is made and accepted or you could face a discrimination claim. Accordingly your stated public policy must be that you hire qualified people with documentation, regardless of whether they are U.S. citizens. While you may not (and should not) inquire when authorization expires, it is acceptable to periodically show evidence of continued eligibility.
 
It is the employee's responsibility to provide the evidence [Form I-9 spells this out.] that they are legitimately employable. If they can't, then good-bye!
 
If you've overlooked this new requirement, do it NOW.
 
Compliance failures are significant -- record keeping violations alone can run from $100 to $1,000 each. There are other civil and criminal penalties including knowingly employing an unauthorized alien that can range to $10,000 per violation.
 
ALERT UPDATE - APRIL 2008
 
In late March 2008, Homeland Security increased fines by 25% for knowingly hiring undocumented workers or fail to follow the rules.  This is a serious exposure - don't hurt your business - COMPLY!!
 
REMEMBER --

This and other Legal Alerts and Legal Reliefs are available at my website.
  
Gordon A Carpenter, Attorney and Counselor at Law