Employers have been required to complete I-9 forms for the last 20 years. In the past year or so, however, the Department of Homeland Security -- the federal government agency now in charge of immigration issues, among other things -- has taken steps to make compliance easier for employers, by:

• allowing employers to verify work authorization online
  
  
• allowing employers to store I-9 forms electronically, and
  
  
• telling employers what to do if they learn that the information provided by the employee does not match information on file with the government.

Verifying Employment Authorization Online

Employers in all 50 states may now use a Web-based system to verify that new hires are eligible to work in the U.S. This program, called "Basic Pilot," is voluntary, but Congress is considering making it mandatory. Here's how it works:

• Employers who choose to use the program must register to do so and complete a "Memorandum of Understanding" -- essentially a contract with the government regarding use of the system.
  
  
• Employers then receive a user ID and password, which they can use to access the system and make sure the employee's documents match government records.
  
  
• If the Social Security number the employee provided matches the number on file with the Social Security Administration, the employer will receive an immediate confirmation. If not, or if there is some other problem with the employee's documents, it might take a few days to hear back.
  
  
• If the employer ultimately learns that the employee's work authorization cannot be verified, it will be instructed to have the employee contact the Social Security Administration to clear up the matter. The employee then has eight days in which to resolve the situation.

Employers who choose to use the online verification service are still required to complete Form I-9 for every new hire; the service simply provides immediate information regarding the employee's eligibility. For more information on the program, go to www.uscis.gov.

Electronic Storage and Signature of I-9 Forms

The Department of Homeland Security issued interim regulations, effective June 15, 2006, explaining the standards for electronic retention and processing of I-9 forms. These rules interpret a law passed by Congress in April, 2005.

The new regulations explain the requirements employers must meet if they wish to sign and store I-9 forms electronically. These rules don't require employers to use a particular type of system; instead, they prescribe minimum standards employers must follow if they wish to use an electronic system.

For example, the employer's electronic storage system must guard against unauthorized use of the information, protect the accuracy and integrity of the records, and allow records to be searched and reproduced. Employers are also required to provide certain information about its records and system to the government, upon request.

What Employers Should Do After Receiving a "No-Match" Letter

The Department of Homeland Security has also issued some guidance for employers who are told, by the Social Security Administration or by the Department of Homeland Security following an audit, that the Social Security number or other information they have for an employee does not match government records. These new rules tell employers what steps they should take after receiving a "no-match" letter, in order to avoid legal liability for knowingly employing an unauthorized alien.