USCIS Provides Guidance on I-9 Completion for Remote Hires

USCISBy Nelsy C. Gomez – With the existing stringent rules regarding the proper and timely completion of the I-9 form, many employers still find themselves wrestling with the issue of what to do with employees who are hired and work remotely. Until recently, the  (“USCIS”) has provided very little to no guidance on how to handle these remote hires. However, USCIS has decided to address this issue head-on and has given employers direction on how to properly handle these remote hires while remaining compliant with their I-9 obligations.

According to USCIS, employers can designate an authorized representative to complete the I-9 forms with their remote hires. The authorized representative can be a personnel officer, a foreman, an agent of the employer, or even a notary public. When using a notary public for purposes of the I-9 form and its completion, the notary public is viewed as an authorized representative of the employer, not as a notary. Therefore, the notary would complete the I-9 form with the employee as would any agent of the employer and should not provide any notary insignia on the form.

While the authorized representative does not need to have any written agreement regarding the ability to complete the Form I-9 on behalf of the employer, it would be prudent to have some memorandum indicating the person has been designated as such. This will prove to be helpful if ever faced with a government audit where this kind of arrangement for remote hires has been made. It is also important to remember that the authorized representative is still required to comply with the rules regarding proper completion of the form, which includes a physical examination of the employee’s employment eligibility documentation while the employee is physically present. Webcam review of the documentation is still not permitted. Employers should keep in mind that the employer is liable for any violations committed in connection with the form, even when the form is completed on behalf of the employer by an authorized representative. Therefore, employers are responsible for ensuring that any authorized representative is properly trained and well-versed on the proper completion of the Form I-9.

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Posted in Federal Government, Immigration, Labor & Employment, Wage and Hour

Houston Passes Controversial Anti-Discrimination Ordinance

Late in the evening on May 28th, the Houston City Council passed a city ordinance that prohibits discrimination against employees on the basis of sexual orientation or trans-gender status.   The ordinance also prohibits discrimination on the basis of race, sex and other already protected classifications, but the real point of the measure was clearly to add to (not duplicate) the already existing federal and state laws.  The ordinance applies to virtually all employers with more than 15 employees who operate within the city of Houston, although it does have an exception for religious institutions and private clubs.

Violators can be fined up to $5,000 but there is no private right to sue under the law, like there is for other types of discrimination under state and federal law.  Importantly, violators may be prosecuted criminally for discrimination, which is a Class C misdemeanor.  Complaints must be filed with the city within 180 days and can be investigated by the City’s Inspector General.  The full text of the ordinance can be found here.

My take on the ordinance is that it does not add very much to existing law.   Although sexual orientation was not already a protected classification, many federal courts (including some in Houston) have allowed cases to be brought by homosexual employees under Title VII for sex discrimination.   Such cases apply a “gender stereotyping” analysis to bring sexual orientation discrimination under the umbrella of sex discrimination.  Further, many other cities in Texas, such as Austin, Dallas and Fort Worth already have such ordinances, so most large Texas employers have already modified employment policies to comply.   That said, adding another level of bureaucracy to employment law is never a good thing, and we will have to wait and see exactly what impact the ordinance actually has in the Houston area.

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IRS Says It Will Penalize Employers Dumping Employees into Obamacare

Internal_Revenue_Service_logoBefore the ink on the Affordable Care Act was dry, prudent employers were analyzing the law to identify ways to save money and avoid many of the punitive aspects of the law. One question which has repeatedly been asked of myself and other employment lawyers is whether it would be lawful for employers to simply “get out of the healthcare business,” i.e. allow employees to take the tax-free funds which would otherwise be spent by the employer, to use themselves in the healthcare exchanges to purchase their own insurance plans. This week, the Internal Revenue Service (IRS) answered that question with a resounding “No.”

The IRS ruled that it would consider such a reimbursement plan to be a “health care plan” subject to all of the requirements of health care reform. Since those requirements would be impossible to meet, the plan would be subject to an excise tax of $100 per day per applicable employee (which is $36,500 per employee, per year). The IRS’ opinion on the matter can be found here.  

The takeaway is that the IRS has effectively made it impossible to dump employees off an existing health care plan and instead offer pre-tax money towards purchasing health insurance on an exchange. Of course, an employer can always just pay employees higher wages, and discontinue insurance, but both the employer and employee will have to pay additional taxes. Moreover, it is a lot easier to convince employees that their salary includes a payment for insurance, if it is accounted separately. Once the money is included as wages, it will likely simply be seen as an entitlement.

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Posted in Federal Government, Healthcare Reform, Labor & Employment, Wage and Hour

NLRB Cracking Down on No-Taping Policies

It is wenlrbll-established that the NLRB has been aggressively litigating cases involving social media policies and employees terminated for making disparaging comments online. Recently, however, the NLRB has expanded its reach even further into employee handbooks and have staked out a clear position that blanket prohibition of employee picture taking is unlawful. For example, this week, an Administrative Law Judge for the NLRB found that The Boeing Company violated federal law by maintaining a policy which stated: “Use of these devices [i.e. cameras or cell phones] to capture images or video is prohibited without a valid business need and an approved Camera Permit that has been reviewed and approved by Security.” The full decision, The Boeing Company and Society of Professional Engineering Employees in Aerospace, IFPTE Local 2001, 19-CA 090932,  can be found here.

Boeing is a union employer, and the NLRB also found that Boeing, itself, engaged in unlawful videotaping of employees engaged in a walkout. That said, the logic of the NLRB’s position on restricting employee taping will apply equally in a union and non-union setting. In fact, the NLRB struck down a similar restriction on employee taping in a case last year against Hispanic supermarket chain Giant, who was in the midst of an organizing campaign at the time.

The takeaway from these cases is that the NLRB is going to expect a no-taping policy to provide an exception for employees taking pictures to further their right to organize or engage in collective action. For example, an employee recording a picket line or an unsafe working condition will likely be protected from discipline. As a practical matter, it is difficult to craft a policy which would satisfy the NLRB, but still have teeth and be enforceable. That said, if your organization is unionized, and your policies will be scrutinized by a union, you may not have a choice.

Many non-union employers, however, don’t really want to tell  employees that it is okay to take pictures of the workplace if you want to make a complaint to an agency, or organize a union. Consider instead a short disclaimer explaining that the policy does not apply to “protected activity under the National Labor Relations Act.” This may or may not satisfy the NLRB, but it shows good faith and still leaves a meaningful policy intact. Also keep in mind that discipline in this area, much like cases involving social media, are subject to being scrutinized by the NLRB, so extreme caution should be exercised.

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Can an Employee Accept a Severance Payment and Still File a Discrimination Claim?

According to the EEOC, the answer to that question is not only “Yes,” but that any severance agreement which limits the employee’s right to file a charge of discrimination is unenforceable and illegal. This week, the EEOC filed suit against College America for placing unlawful conditions on a severance payment made to a former employee. The contested parts of the agreement included her promise to not file a complaint with a government agency or to disparage CollegeAmerica.   The lawsuit, and the specific language at issue, can be found 200px-US-EEOC-Seal_svghere.   

The EEOC also filed a similar suit against CVS Pharmacy Inc., challenging what it claimed was an overly broad severance agreement. The EEOC’s position is that: “Rights granted to employees under federal law, like the right to file charges of discrimination and participate in EEOC investigations into alleged discrimination in the workplace, cannot be given up in agreements between private parties.”

As a practical matter, the EEOC’s position is a tough one to swallow for most employers. After all, it would seem unfair for an employer to pay a departing employee for a release, and then turn around and defend a charge filed by the employee with the EEOC. The employer is clearly not getting the expected value of the settlement, and the EEOC’s policy, if it becomes the law, would discourage private settlements (which is ultimately bad for employees). Faced with an employee who pursues a charge, notwithstanding a release, employers must decide whether to try to rescind the release (which is not really a better deal) or to argue that, although the employee may have a legal right to file a charge, the employee cannot recover any relief  per the waiver in the severance agreement (a position which most courts have followed).

The takeaway from these new lawsuits is that severance agreements should be carefully scrutinized by experienced employment lawyers, and employers should be aware that a release may not “really” be a release when it comes to discrimination claims.

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New Texas Supreme Court Case Helps/Hurts At-Will Status

texasOn April 25, 2014, the Texas Supreme Court issued a decision in the Sawyer, et al. v. Du Pont case, which can be found here. The case involved questions from the Fifth Circuit Court of Appeals regarding the scope of the at-will doctrine in Texas. The facts of the case are that a group of employees who worked for Du Pont claimed they were fraudulently induced into becoming part of a business unit being spun off into its own company instead of transferring to another Du Pont facility, which was an option. The employees claimed they were promised that the new company would keep their current pay and benefits, and that it would not be sold. After the deadline to make a decision passed, and most of the employees joined the new business unit, Du Pont announced a sale of the facility to a competitor, who promptly reduced the former Du Pont employees’ compensation and benefits.

The first question answered by the Supreme Court was whether at-will employees could sue for fraud. The Court easily answered “No” to that question. The second question asked whether the employees’ collective bargaining agreement which contained a “just cause” provision would affect the analysis. Again, the Court answered “No” and held that the employees’ exclusive remedy would be under the collective bargaining agreement, not common law.

Perhaps the most interesting part of the decision is in footnote 24, where the Court cites to a Restatement of the Law dealing with the commonly arising situation where an employee is induced to leave a job in another state and move to Texas after being promised a job which never materializes. The Restatement would allow such an employee to sue for “the costs of moving her family across the country and for other loss occasioned by her relinquishing her former position … but not the value of the promised career.” The Court does not adopt the Restatement per se, but states that it is “consistent with our analysis.”

The takeaway from this case is that the at-will doctrine is alive and well in Texas. That said, the Court adds new support for an exception to the at-will doctrine in the limited circumstance of an employee who incurs a financial loss in reliance on a promise of employment which is later rescinded.

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Houston Mayor Proposes City Ordinance on Sexual Orientation Discrimination

texasHouston is one of the few major cities in the country without a law prohibiting discrimination on the basis of sexual orientation.  Neither federal nor Texas law includes such a protected category, however, other Texas cities such as Austin and Dallas have city ordinances with such protections. 

This week, Houston Mayor Anise Parker proposed a city ordinance which would outlaw discrimination on the basis numerous protected categories, including race, sex, religion, age etc.  The difference between the proposed ordinance and existing laws is that sexual orientation and gender identity are also included as protected classifications. For more background on the proposed ordinance, please see the write up from the Houston Chronicle.

This ordinance will be put to a vote by city council next month and would not apply to employers with less than 50 employees. It would apply to all private businesses, however, religious institutions would be exempt. If passed, there will be a lot of Houston employers who will need to update their employee handbook…

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Posted in Discrimination, Labor & Employment, Uncategorized

President Obama Targets Equal Pay

White HouseOn April 8, President Obama issued two executive orders which will impact employers who do business with the federal government. First, the President made it unlawful for contractors to retaliate against employees who discuss their pay. Second, the President ordered the Department of Labor to issue new regulations requiring contractors to provide pay data (by gender) to the federal government. Cozen O’Connor’s Labor & Employment Alert on the development can be found here.

My take on the first order is that it is irrelevant, and largely a publicity stunt. The National Labor Relations Board has long taken the position that federal law protects from retaliation those employees who discuss their pay (both union and non-union). The second order, although only affecting contractors, is more significant because it illustrates the complete disconnect between what this Administration says and the reality in the workplace. Statistics are inherently misleading because employees in the same job may be paid different wages for any number of legitimate reasons, including experience, skill, work schedule, etc. Indeed, the latest statistics on the White House, hardly a bastion of male chauvinism, show women earn significantly less than their male counterparts. These types of statistics are virtually worthless and will only provide ammunition to plaintiffs’ lawyers looking to file lawsuits.

 

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Posted in Discrimination, Federal Government, Labor & Employment, Wage and Hour

Congress Passes Rare Bipartisan Amendment to Obamacare

CongressThere is not a lot that Democrats and Republicans can agree on with respect to Obamacare, but on April 1, 2014 the President signed into law a Medicare bill which had a provision tucked inside that will bring some important changes to the small employer insurance market. The problem that needed fixing was that Obamacare originally capped deductibles to $2,000 for individuals and $4,000 for families. Any plan in the small group or individual market with higher deductibles would be illegal. 

The Department of Health and Human Services issued a waiver for 2014, because a whopping 96% of the plans in the bronze tier (the lowest tier) exceeded those caps. This fix will do away with those caps permanently.

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Cozen Issues Labor Alert on NLRB Approving Unionization of College Athletes

As a follow up to the previous blog post, my firm Cozen O’Connor has issued a Labor Alert on the recent news story involving the NLRB allowing college football players to unionize.   The full alert can be found here.

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About HR Headaches
HR Headaches is a blog for Human Resources professionals, business owners, and in-house counsel to get the latest news, analysis and tips in the area of labor and employment law. Every day there are new court decisions, agency interpretations, and regulations which affect the workplace, making it difficult, if not impossible, for many employers to keep current. HR Headaches is dedicated to providing information in a practical, no-nonsense manner to help employers avoid legal disputes and keep policies up to date.
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