New Immigration Audits for Missouri Contractors
June 1, 2007
by Employment & Labor Law / Employee Benefits Group
Stinson Morrison Hecker LLP
Copyright © 2007
Businesses which enter into contracts with the State of Missouri will be subject to new immigration audits under a March 6, 2007 Executive Order signed by Missouri Gov. Matt Blunt ®.
Mandatory Audits - Under the Executive Order, each state agency must audit all of the contractors doing business with the state to ensure that the current employees of those contractors are legally eligible to work within the United States. Each state agency must collect the information required to make such a determination and verify its accuracy by using the federal government’s Systematic Alien Verification for Entitlements (SAVE) program.
Penalties - If the state determines that a current contractor employs any person who is not eligible to work in the United States in violation of federal law, the contractor will be in breach of contract and the state may lawfully terminate the contract and suspend or debar the contractor from doing business with the State of Missouri.
Future Contracts can be Canceled Immediately - All future contracts with the State of Missouri will include a provision that allows the state to declare a breach and to cancel the contract immediately, with no penalty, if the state has reasonable cause to believe that the contractor has knowingly employed individuals who are not eligible to work in the United States in violation of federal law.
Certification Required – All state agencies also must require every contractor who does business with the State of Missouri to certify in writing that every employee of the contractor assigned to perform services under the contract is eligible to work in the United States.
Bottom Line – Given the new possible sanctions for employing people who are not eligible to work in the U.S., businesses who contract with the State of Missouri should consider whether it may be appropriate to conduct an internal audit of their employees’ Employment Eligibility Verification (I-9) forms (perhaps under the direction of legal counsel in order to maintain attorney-client privilege).
Stinson Morrison Hecker LLP is one of the country's largest law firms with more than 335 attorneys in more than 45-industry-focused areas. If you would like more information regarding this summary, please contact one of our Employment & Labor Law and Employee Benefits attorneys.
Law at Work is designed to give general information and is not intended to be a comprehensive summary or to treat exhaustively the subjects and matters covered. The information appearing herein does not constitute legal advice or opinions. Such advice and opinions are provided only upon engagement with respect to specific factual situations. Nothing contained herein shall be considered as an admission in any matter or controversy.
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