Tighter hiring rules decried
Companies expect difficulty in staffing

By Jerry Hirsch and Kimi Yoshino, Tribune Newspapers: Los Angeles Times
http://www.chicagotribune.com/business/ ... 9403.story
August 13, 2007

A planned federal crackdown on the hiring of undocumented workers has sparked fears that farmers will be left without workers to pick crops, restaurants without cooks and dishwashers, and small businesses without a ready source of casual labor.

The new rules also are likely to reduce employment in the construction, janitorial and landscaping industries, analysts say.

The Department of Homeland Security is about to issue new regulations on how businesses must respond when informed that there are discrepancies in a worker's tax records. Many businesses simply ignore such notices now, but under the new rules employees would have a limited time to contact the Social Security Administration to correct the information. If they do not, employers must fire the worker or face fines.

Industries claiming that the rules will undermine the economy are using "scare tactics" to fight the plan, said Russ Knocke, a Homeland Security spokesman.

"Are they suggesting that we should not enforce the law?" Knocke asked. "We have been tough about this, and we are going to be even tougher. There are employers who have gamed the system for years, and the regulations are going to fix that."

Small-business groups are protesting the rules, saying they put the burden of enforcing immigration on the tiniest companies.

"Yes, we need to get a handle on this issue, but you can't expect small-biz owners ... to be border police. It's just an extremely difficult position to put small businesses in," said Todd McCracken, president of the National Small Business Association, which represents 65,000 firms.

Recently, more employers have been using the Department of Homeland Security's Basic Pilot program, which enables them to check the validity of Social Security numbers online. As long as the name and the Social Security number are legitimate, the system will indicate that the person is authorized to work. However, law enforcement agencies have reported that undocumented workers are increasingly using stolen Social Security numbers to outmaneuver the system.

Scott Hauge, president of the trade group Small Business California, said a rule requiring workers to be fired if they cannot quickly reconcile discrepancies could expose companies to new liabilities.

"If things don't get worked out in a couple of months, we're just supposed to fire someone?" Hauge asked. "What happens if the data is wrong and you fire them? Does that open you up to a wrongful-termination suit?"

Knocke disagreed.

"If employers act in good faith and make an effort to comply with the law, there will be a safe harbor provision for them," he said.

Marc Grossman, spokesman for United Farm Workers of America, believes the rules will be catastrophic for agriculture workers and farms.

"If you were going to fire everyone whose Social Security numbers were not in order, you will lose a majority of the workforce ... as much as 90 percent, depending on the area," Grossman said.

The planned regulations also have spooked the restaurant industry, which has nearly 13 million workers and is one of the largest private employers.

"We still would like Congress to be the one that sets immigration policy," said John Gay, senior vice president of the National Restaurant Association.

The major trade groups protesting the action expect Homeland Security to act soon despite industry objections.

"It seems inevitable," Gay said.