HR Regulatory Update - December '09

Check Your Individual Retirement Account Agreements

A recent Department of Labor Advisory Opinion (Ad Op 2009-03A) discussed the effect of certain language that is often found in brokerage agreements that could be used in connection with Individual Retirement Accounts offered by brokerage firms. The Department advised that the language in question would result a series of "prohibited transactions," which would have the effect of invalidating the customer's IRA.  To learn more click here.

Second Wave of I-9 Audits: ICE Sends Notices of Inspection to 1,000 Employers

On November 19, 2009, U.S. Immigration and Customs Enforcement (ICE) announced that it had issued Notices of Inspection (NOIs) to 1,000 employers across the country who are involved with critical infrastructure. The NOIs mean ICE will be auditing the employers' hiring records, specifically their Form I-9s, to determine compliance with the employment eligibility verification laws.

According to ICE, the businesses notified of I-9 audits this week were selected for inspection based on investigative leads and intelligence, and because of the business' connection to public safety and infrastructure. This recent announcement illustrates the agency's significantly increased aggressiveness in focusing on I-9 audits as an enforcement tool to crack down on the employment of unauthorized workers.

This is a second major wave of I-9 audits by ICE, which follows the issuance of NOIs to 652 employers in a single day earlier this year.

To learn more about I-9 audits and how to ensure your business is in compliance please click here.

HR Regulatory Updates are provided by Ford & Harrison LLP.