HR Compliance

Employer Services on Hold with Government Shutdown

By

Jason Bodin

| Oct 1, 2013

The United States Congress was unable to come to a resolution causing the federal government to shut down as of Oct. 1. These actions not only impact federal employees and agencies, but its effects will ripple down to employers until an appropriations bill is passed.

Below is a rundown of a variety of employment-related issues created due to the shutdown.

  • The more than 400,000 employers enrolled in the E-Verify system will not have access to determine the eligibility of prospective employees to work in the U.S. The shutdown of E-Verify will delay employers’ ability to run new employee paperwork, creating a scenario where employers may have to hold new-hire plans. As a result of the shutdown, employers will be unable to resolve Tentative Nonconfirmations (TNCs). Once E-Verify services resume, employers must process the stockpiled hires that would have otherwise been run through E-Verify, if not for the shutdown. Additionally, the following policies have been implemented to relieve some burden placed on employers:
    • The E-Verify “three-day rule” has been suspended for cases affected by the shutdown.
    • The number of days the federal government is closed won’t count against the eight federal government workdays an employee has to go to Social Security Administration or contact Department of Human Services. Additional time will be given once E-Verify reopens.
  • If you utilize Paycom’s E-Verify services, then your E-Verify process will be seamless as all stockpiled cases can be entered now and processed once E-Verify services resume.
  • The Department of Labor will furlough the majority of its employees, creating a temporary cease of all non-emergency tasks and duties. This means that audits and hearings will be postponed; however, federal labor laws remain in effect and employers are obligated to continue to comply with all such laws and regulations.

Despite the shutdown, employers must be aware that:

  • President Obama announced that state-run exchanges will open today as scheduled. Employers subject to the Fair Labor Standards Act are still required to notify employers of Marketplace opportunities and possible subsidies by the end of business today. For more information on the Notice requirement, please see here.
  • The I-9 form requirement is still active and must be completed within three business days of an employee’s start date.
  • Employers must remain compliant on unemployment benefit matters because they will continue despite the shutdown. This includes government benefits including Medicare and Social Security. It is still required that employers provide information to state agencies and appear for all hearings regarding these matters.

Paycom will continue to keep employers up-to-date on issues or resolutions concerning the government shutdown.

About the Author

Jason Bodin

Jason Bodin has been the communications pulse for a number of organizations, including Paycom, where he serves as director of public relations and corporate communications. He helped launch Paycom’s blog, webinar platform and social media channels. He aided in the development of Paycom’s tool to assist organizations in complying with the Affordable Care Act, one of the largest changes in health care the country has seen. A graduate of the University of Oklahoma, Bodin previously worked for ESPN and FoxSports. In his free time, he enjoys adventuring with his family, reading and strengthen his business acumen.

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