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According to the Immigration Reform and Control Act, all employers must verify the identity and employment authorization of employees working in the United States who were hired after November 6, 1986. This verification process is documented by completing and retaining Form I-9, Employment Eligibility Verification, regardless of the employee’s immigration status. Even though completion of Form I-9 is designed to be simple, there are quite a few details both employees and employers must be careful about to ensure thorough compliance with all federal requirements. Therefore, it is important to not only understand Form I-9 and its sections, but how to draft a standard operating procedure to improve compliance. Form I-9 Standard Operating Procedure A standard operating procedure (SOP) is a document that outlines the steps employees must follow to complete a specific task. An SOP for an I-9 policy ensures compliance with IRCA, protects employers from liability, and streamlines the I-9 process. An SOP will include a well-defined business process to properly complete Form I-9. I-9 compliance is not only a legal requirement, but also a smart business decision. Here are a few points to consider when drafting an I-9 SOP. Clearly state the objective of the SOP and what it is intended to achieve.Define what the SOP covers and what it does not cover. It might not cover, for example: Immigration-related procedures such as visa applications, relocations, ex-pat situations, etc.The procedures for E-Verify for those who do not participate in E-Verify.The procedures for other HR-related forms such as W-4, Direct deposit, W-9, a non-disclosure agreement (NDA), Background check consent form, Employment Agreement, etc.The procedures for other legal compliance forms, such as OSHA, HIPAA, etc. Research the I-9 form and relevant regulations, reference material such as the Department of Justice and Immigrant and Employee Rights, and gather any necessary examples, guides, or other resources. For example, enforcement of anti-discrimination provisions by the agencies, extension rules for TPS, updates on DACA, asylees, and refugees, etc.Outline the company's policies and procedures for the I-9 process, such as the roles and responsibilities of employees and departments or authorized representatives involved in the process, and the procedures for handling errors or inconsistencies, whether you will complete a new I-9 or utilize Section 3 for rehires, remote agent policies, etc.Create a checklist of the steps to be followed during the I-9 process and break down the I-9 process into a logical sequence of steps and provide detailed instructions for each step. For example Steps before and on the first day of employment, steps to be taken within three business days from the first day of employment, the procedures for completing the I-9 form, including the version of the Form I-9 to be completed, types of acceptable documents, the process for verifying employee identity and work eligibility, the deadlines for completing the form, options available for remote or Hybrid employees on completion of Section 2, the retention and storage requirements for the I-9 forms and other relevant documents, E-verify process if you participate in E-Verify, Section 3 reverifications, etc.Use images, diagrams, or flowcharts to help employees and authorized representatives understand the process more easily.Provide details of the training, job aids, knowledge articles, and support provided to those who are responsible for completing the I-9 form.Reference system reporting and notification schedule and tools available for Section 3 reverifications, receipts, pending Sections 1 and 2, pending corrections, etc. Emphasize the compliance requirements and regulations related to the I-9 form, such as the penalties for noncompliance and the processes for dealing with government audits or inspections.Ensure that the SOP must be written in clear and concise language, reviewed, and updated on a regular basis to keep it accurate and up to date with the current regulations. Keep a track record of all the amendments made to the SOP and ensure that the compliance team reviews and approves the SOP before making it widely available. Include escalation points and contact information of the person/s or department responsible for the I-9 process. By following these tips, you can help ensure that your company is in compliance with I-9 regulations and avoid costly fines and penalties. Avoid Form I-9 Mistakes with Proper Management Correctly completed I-9 forms are an indispensable condition of compliance, as a key step in ensuring the legality of their businesses when it comes to immigration policy. However, that is not nearly enough – if any of the other mistakes we listed are made, the effect achieved by proper completion will be in wane, as the penalties for inaccuracies, missed deadlines and re-verifications can still be too high to handle for any business. There are no mistakes in I-9 management that will go unpunished if detected by authorities. To avoid the risk of exposing the company to fines and lawsuits, many employers decide to upgrade their operations in this field by adopting advanced I-9 software solutions. Electronic I-9 management includes control mechanisms, easy access to stored I-9s, automatic deadline notifications, integration with E-Verify, and data security measures. Learn more about the ways to safely outsource I-9 administration, prevent Form I-9 mistakes and costly fines, and improve compliance through the use of a reliable state-of-the-art electronic I-9 system.

There are different situations that require confirmation of applicants’ past or current job status. Employers often need to conduct verification for job candidates or reply to requests from other employers, lenders, landlords or the federal government. Verbal verification of employment is a process of confirming the accuracy of information by requesting confirmation from a source through a spoken conversation. This type of verification is often used in situations where written confirmation is not possible or practical. However, while verbal verification can be a useful tool under certain circumstances, employers should also be aware of its downsides. Written and Verbal Verification of Employment When current or previous employees apply for a loan, employers may be required to provide written verification of employment and confirm employment dates, status, title, and salary history. This type of verification is usually performed if applicants have variable income or have recently experienced a change to their income as compared to the annual income documented on their most recent Form W-2. Written employment verification typically includes a signed release from the employee or job applicant allowing the employer to share this information with a third party. Unlike verbal verification of employment, written verification provides a documented record of the information provided, which can be used to confirm the accuracy of the information later if needed. Depending on income type as well as the information collected during the initial stages of employment verification, there may be additional requirements that applicants must meet before the final approval of a loan. Therefore, in addition to a written verification, employers can expect to receive a request for verbal verification of employment. Verbal verification of employment is done with current employers just before the loan is funded to ensure employment status has not changed. It is generally completed as late as possible in the loan origination process. Lenders are usually required to contact employers no more than 10 days before closing to confirm continuing employment, but some lenders may perform verbal verification of employment after the loan closing. Verbal Verification of Employment for Self-Employed Applicants Verbal verification of employment may also be performed for self-employed applicants. In addition to checking their income with tax returns and current financials like balance sheets and income statements, lenders need to verify the company’s continued existence with a Certified Public Accountant (CPA), licensing authority, or other third parties. CPAs are usually required to confirm that an applicant is self-employed, verify their income and indicate how likely it is that their business will continue by providing information about business profits, any rental properties or other investment income. Common Issues with Verbal Verification of Employment Verbal verification of employment is generally quick and straightforward, but there are different issues that can cause delays in the process or disqualify applicants from receiving the loan. In addition to this, it is not recommended that employers rely on verbal verification of employment for several reasons, including: Releasing Information without Collecting Documentation One of the primary risks of verbal verification of employment is releasing information without collecting documentation. This may increase the likelihood of errors or inaccuracies because the person answering the phone may not have all the necessary information or may fail to provide key details. If misinformation is released through verbal verification of employment, employers can be exposed to liability. In addition to this, inaccurate information could result in damage to an employee’s reputation, lost job opportunities or other negative consequences. Not Vetting the Requesting Party When an employer receives an employment verification request, they need to verify that the requesting party is authorized to receive the information. This can be difficult over the phone as it is challenging to verify the identity of the caller or check that they are who they claim to be. On the other hand, if employers fail to properly vet the requesting party, they run the risk of releasing sensitive employee information to unauthorized individuals. This can include personal information such as the employee’s name, address, Social Security number and other details that could be used for identity theft or other fraudulent purposes. This way, verbal verification of employment can also damage the employer’s reputation as well as the trust between them and their employees. No Audit Trail Verbal verification of employment involves providing information over the phone or through other verbal means, without any written record of the exchange. This can create different difficulties for employers who need to keep accurate records of all employment verification requests and their responses. Without an audit trail, employers cannot defend themselves in the event of a dispute or lawsuit related to employment verification. Furthermore, it can be challenging to track the volume and frequency of employment verification requests, making it difficult for employers to manage their workload effectively. This can lead to delays or errors and negatively impact all parties involved. Finally, the lack of an audit trail can result in non-compliance with regulations such as the Fair Credit Reporting Act (FCRA), which requires employers to maintain accurate records of employment verification requests and their responses. Liability for Releasing Misinformation Another risk related to verbal verification of employment is the potential for liability for releasing misinformation that can have adverse actions on current or former employees. Furthermore, if employees do face unfavorable consequences due to inaccurate employment information, such as a denial of employment or termination, employers are the ones who may be liable for damages. No Consistency Verbal verification of employment also leads to a lack of consistency when multiple people handle the task of answering verification requests. For example, if different employees within an organization are responsible for verifying employment information, they may provide different answers to the same request. This can create confusion for the requesting party and damage the credibility of the employer. Time-Consuming and Complex Processes Finally, it can be time-consuming for HR staff to conduct verbal verification of employment and locate the necessary information to provide to the requesting party. Depending on the information being requested, they may need to log into different systems or coordinate with other departments within the organization. This may also be a disruptive process as it can take HR staff away from other pressing tasks and responsibilities, which is particularly challenging for smaller companies or organizations with limited resources. Moreover, when conducting verbal verification of employment, there is always a risk that too much information will be disclosed, including an employee’s location, working hours or other sensitive data. This can lead to a violation of privacy laws, exposing employers to legal liability. Effective Employment Verification Process Employment verification is a critical step in a number of situations that may affect both employers and employees. Employers may receive verbal verification of employment requests on current or former employees from government agencies, mortgage lenders, prospective employers and others. They usually seek to verify employment dates, wages, the likelihood of continued employment, eligibility for rehiring or reason for termination. Taking into consideration how important these requests are for employees, employers should complete them with truthful responses and in a timely manner. When it comes to deciding which employment verification type is the most effective one, it is important to note that outsourcing to a third-party provider is the safest way to ensure that employment information is released to a credible and trustworthy party. Third-party verification services typically have strict vetting procedures to make sure that only authorized parties are requesting information. They also provide an audit trail of the verification process to ensure accuracy and compliance. At the same time, when an employer outsources employment verification, they are no longer responsible for verifying the accuracy of the information provided, thus reducing their exposure to risk and potential liability. Another benefit of outsourced verification is that it saves time and resources, so employers can free up their HR staff to focus on other value-added activities that can help to grow the organization. Also, third-party verification providers have standardized processes and procedures in place to ensure that each verification is handled in the same way, reducing the risk of errors. Finally, outsourcing employment verification ensures compliance with applicable laws and regulations, including the FCRA. As a result, employers reduce the risk of any legal issues and potential liability. Streamline employment and income verification and make it more efficient and accurate, while ensuring that employee data is kept secure and confidential.

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