Maryland PHCC Contractor, Spring 2016

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SPRING 2016 PHCC CONTRACTOR MAGAZINE

The Official Magazine of The Maryland Plumbing-Heating-Cooling Contractors Association

Maryland PHCC Annual Trade Show & Expo M&T Bank Stadium March 31, 2016

Hiring and Immigration Laws Congress Ends First Half of 114th Congress With Positive Momentum

2016 Employment Law Changes and Trends It’s All About Tangible Value

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Maryland PHCC Contractor | Spring 2016

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Spring 2016 | Maryland PHCC Contractor

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Spring 2016

PHCC CONTRACTOR MAGAZINE

CONTENTS......

A Message From the New PHCC National Association Executive Vice President 6 - Michael Copp Legislative and Regulatory Update

Senior Editor - Diane P. Kastner Maryland PHCC Contractor Magazine is the official magazine of The Maryland PlumbingHeating-Cooling Contractors and is published four times annually. The Maryland PHCC does not necessarily endorse any of the companies advertising in this publication or the views of its writers.

Maryland PHCC Contractor Magazine is designed and published by Blue Water Publishers, LLC. Articles and information published in this magazine may not be reproduced without written consent of The Maryland PHCC or Blue Water Publishers, LLC. Maryland PHCC reserves the right in its sole discretion to reject advertising that does not meet Maryland PHCC qualiďŹ cations or which may detract from its business, professional or ethical standards. The publisher cannot assume responsibility for claims made by advertisers, content provided by the editor, or for the opinions expressed by contributing authors.

8

- Mark Riso, PHCC National, Director of Government Relations

2016 Employment Law Changes and Trends

10

2016 Maryland PHCC Annual Trade Show and Expo

12

Maryland PHCC Calendar of Events

17

Plumbing Instructors Wanted

17

Hiring and Immigration Laws

18

Maryland PHCC Open Enrollment & Skip Test Classes

22

Maryland PHCC Introductory Membership Information and Application Put the PHCC Advantage to Work for You in 2016

26

ADVERTISER SUPPORT.....

Bradford White 2 Charlotte Pipe & Foundry 9 FastEst 11 Kolbi Pipe Marker 11 Liberty Pumps 28 Metropolitan Industries 13-16

For more information on advertising, contact Jim Aitkins Blue Water Publishers, LLC 22727 - 161st Avenue SE, Monroe, WA 98272 360-805-6474 / fax: 360-805-6475 jima@bluewaterpublishers.com

Rheem 27 Saniflo 5 See Water 23 T&S Brass 7 Taco 21 Woodford Manufacturing 3

OFFICERS 2016......

PRESIDENT STEVEN M. SCHAEFER WESTMINSTER, MD (410) 876-6825 (410) 857-0011 FAX

DIRECTORS THOMAS KELLER ELLICOTT CITY, MD (410) 203-1741 (410) 203-2638 FAX

VICE PRESIDENT KATHARINE K. STRADLEY ELLICOTT CITY, MD (410) 442-2221 (410) 442-7626 FAX

TIMOTHY FELDMAN ELKRIDGE, MD (410) 536-5700 (410) 536-5705 FAX

STEVEN M. SCHAEFER ADMINISTRATIVE CHAIR WESTMINSTER, MD (410) 876-6825 (410) 857-0011 FAX

EDGAR W. ZEPP, IV CLARKSVILLE, MD (410) 531-6712 (410) 531-5812 FAX

RONALD STIEGLER ELDERSBURG, MD (410) 876-6825

TREASURER FREDERICK WOLF BALTIMORE, MD (410) 327-4750 (410) 563-1611 FAX SERGEANT AT ARMS RONALD LLOYD COLUMBIA, MD 21046 (410) 203-2720 (410) 203-1866 FAX [4]

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Maryland PHCC Contractor | Spring 2016

APPRENTICESHIP EDUCATION COUNCIL MEMBERS KATHARINE K. STRADLEY ELLICOTT CITY, MD (410) 442-2221 EDGAR W. ZEPP, IV CLARKSVILLE, MD (410) 531-6712 (410) 531-5812 FAX

HONORARY LIFE MEMBERS WALTER L. BREWER TIMONIUM, MD

PAUL F. GOEDEKE BALTIMORE, MD

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[5]

A Message from the PHCC National Association Executive Vice President, Michael Copp

It’s All About Tangible Value

I

have had an exciting couple of months getting my legs under me and learning what it means to be a PHCC team member. I appreciate the warm welcome I received as I embarked on my “listening tour” these past few weeks, and look forward to meeting many more folks over the next several months.

Like most of the associations I have worked with, one question that I continue to hear is, “What is the value of PHCC?” PHCC National defines “value” in terms of: •

connecting people to intelligence and resources;

•

advocating on behalf of the industry;

•

educating the next generation of members and providing continued education for the experienced;

•

partnering with industry leaders to support the PHCC mission; and

•

protecting public health and safety and the environment.

I think that in the minds of our members, this is “perceived” rather than “tangible” value because the aforementioned descriptions may not resonate with members who do not access PHCC resources on a regular basis—if at all. So, our job is to not only to communicate what we collectively offer, but also show our members (and prospective members) how to access and use the resources to help address their specific professional and business needs. Below is a partial list of specific resources that I think illustrate the “tangible” value of PHCC membership. For more information, visit www.phccweb.org/phccvalue.

Mahatma Gandhi once remarked that “Your beliefs become your thoughts, your thoughts become your words, your words become your actions, your actions become your habits, your habits become your values, your values become your destiny.”

The tangible “value” from all levels of the PHCC Federation directly contributes to our members’ [6]

Maryland PHCC Contractor | Spring 2016

“destiny” of prosperity and positive stewardship of the p-h-c industry—assuming members access those resources.

The PHCC benefits help members operate businesses in the current environment—with an eye to the future.

PHCC is constantly looking ahead and connecting people to intelligence so that members can better make business decisions about diversification or consolidation, training and development, employee benefits, marketing and promotion, use of technology, etc.

Looking Ahead

As we enter 2016, the economic outlook is positive, according to a special report provided to PHCC members recently. Economist Elliot Eisenberg, Ph.D., predicts that households will continue to drive the economy, with assistance from government spending because of improving employment and slightly rising incomes. Dr. Eisenberg projects that GDP may grow by 2.5 percent. Unemployment will likely decline to about 4.6 percent by the year’s end. He also has positive forecasts for single-family and multifamily starts, residential remodeling growth and commercial construction activity, including lodging and retail. On the institutional side, spending on religious buildings, nursing homes/assisted living facilities, police/courthouse/prisons, and miscellaneous government are up. Spending on hospitals/clinics, libraries/museums and military facilities are down. (Elliot Eisenberg, Ph.D., Economic Forecast for 2016: Much Like 2015 but Construction Activity Strengthens, PHCC Online, Dec.15, 2015) PHCC National is assessing information like this in preparation for the association’s strategic planning session in late January. Based on the data we have reviewed so far, it is clear that the organization and member businesses have many opportunities to adapt and grow in 2016. The

association will be providing resources to help you overcome challenges you are encountering in the industry, like finding and retaining a skilled workforce; mastering technology; and addressing the multi-generational issues that are impacting our businesses and society.

We must continuously listen to the “voice” of our members and constituents to innovate and enhance products and services that are of the greatest “tangible” value to our members, sponsors, students and precious industry partners. To that end, I look forward to sharing and implementing the PHCC—National Association’s objectives for the next several years that will require us to influence, facilitate, educate, and advocate—all with the sole destiny of helping all stakeholders within the PHCC Federation thrive.

If you’d like to learn more about PHCC, please email us at membership@naphcc.org or call (800)533-7694.

And we have the extensive product line to prove it.

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Whether bidding on future projects or providing solutions for an urgent plumbing issue today, it’s critical to know you have the right resources in place. That’s why T&S offers a vast selection of high-quality products that are easy to install and built to perform for years to come. And with a full assortment of in-stock items ready for same-day shipping, it’s no wonder contractors everywhere rely on T&S when it matters most.

Visit tsbrass.com and learn more about how we’re partnering with contractors just like you.

T&S plumbing products represented in Maryland by: Repsource Midatlantic - 804-550-0025 TSB_0592 2015 PHCC Pubs.indd 6

10:44 AM Spring 2016 | Maryland PHCC 12/18/14 Contractor [7]

By Mark Riso Director of Government Relations PHCC National Association

Congress Ends First Half of 114th Congress With Positive Momentum

W

hen Congress adjourned for the holiday a few weeks ago, they did something that I haven’t seen in years…they passed a responsible federal budget. Congress passed (and the President signed) a budget that should begin to make people more confident in the budget system on Capitol Hill…and getting back to the way Congress used to conduct its business – let me explain.

In theory – Congress must pass a budget (“appropriation”) for each federal agency (ie: the Department of Labor – the Department of Energy – the Environmental Protection Agency – etc). Years ago – the House and Senate would go through pain staking efforts to review, consider, amend, and pass each appropriation, following action by each respective authorizing committee – though tedious, it was the right way to responsibly work on budgets. In the last few years however, Congress has gotten away from that practice – passing stop gap budgets (“Continuing Resolutions”), in order to meet their budget obligations. This was done because issues (policy) tied to various appropriations would slow down consideration – leading to government shutdowns (or the threat of a shutdown). The “Omnibus” budget passed

by Congress (and especially the way they passed it) will absolutely take the pressure off the budget cycle in the future and 2016 will be a much smoother budget year.

The budget that passed in December, 2015 brings Congress back to what Congress used to do, the way they used to do it, and what they should do. Specifically – Congress is getting back to order. That said – we (PHCC) had a few issues in play contained within the budget that was passed – 1. 179 - Essentially, Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL [8]

Maryland PHCC Contractor | Spring 2016

PURCHASE PRICE from your gross income. Although large businesses also benefit from Section 179, the original target of this legislation was much needed tax relief for small businesses. This provision within the tax code was only temporary and Congress kept extending the section – which made it impossible for a business to anticipate what it needed to do. The budget package makes this provision permanent. PHCC Chapters and members should be proud to have been part of making Section 179 permanent and for all the grassroots support last year.

2. 179D (not to be confused with 179) - The “Energy Efficient Commercial Building Deduction,” included in the IRS code is Section 179D. Enacted as part of the Energy Policy Act of 2005, this provision encourages building owners to increase energy efficiency in new and remodeled buildings by providing an immediate tax deduction for costs incurred which increase the energy efficiency of a building. Those costs would otherwise be generally depreciated over 27.5 or 39 years. Please note, this is a deduction, not a credit. This provision was extended for two years (one year retrospective for 2015 and one year prospective for 2016).

3. Perkins Act – though there were many attempts to cut educational programs in the budget – the Perkins Act was restored and received “level funding” which in essence restores the national programs original levels.

PHCC will continue to fight for increased funding – but for now – this is a victory.

Nobody on Capitol Hill got exactly what they wanted – but everyone got something. In other words – it was a budget designed with a foundation of compromise. Which is what policy development is all about.

SO WE CREATED ONE FOR YOUR HANDHELD. At Charlotte Pipe, we use the latest technology to ensure you get what you need, when you need it. Our newest innovation is our Tech Tools app, featuring a toolbox with an expansion and contraction calculator, a temperature de-rating calculator and more. It’s a nice addition to the online technology we’ve been offering our customers for years. Like real-time inventory updates, order confirmation and shipment notification, and up-to-date scheduling information. We’re giving you the resources you need to get the job done right and on time. That’s been our system of doing things for over a century. And it’s a system that simply can’t be beat.

YOU CAN’T BEAT THE SYSTEM.®

Scan to download your free Tech Tools app.

Spring 2016 | Maryland PHCC Contractor

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2016 Employment Law Changes and Trends Prepared for the PHCC Educational Foundation by TPO, Inc. INTRODUCTION As the New Year begins, it’s important to be aware of the following employment law changes for 2016. With these in mind, you can investigate further – on agency websites and with an employment attorney – what changes you need to make to keep your business in compliance with the employment laws.

AFFORDABLE CARE ACT Employer Shared Responsibility Provisions. Since January 1, 2015, employers with 100 or more full-time (or full-time equivalent) employees that do not offer health insurance to those employees (and their dependents), or that offer coverage that is not affordable or does not provide minimum value, have faced a potential assessment if at least one of their full-time employees receives a premium tax credit to purchase coverage in the individual marketplace.

A full-time employee is employed an average of at least 30 hours per week. Employers with at least 50 but fewer than 100 full-time or full-time equivalent employees generally had until 2016 before these rules applied.

However, on October 7, 2015, the president signed the Protecting Affordable Coverage for Employees (PACE) Act, which allows states to extend the definition of small employer to cover businesses with 100 or fewer employees.

If your business does not qualify as a small employer, it’s important to understand how these Affordable Care Act rules may apply and how the payment amounts could be calculated. Businesses that qualify as small employers in their state are generally not affected by the employer shared responsibility rules.

IRS Retirement Plan Contributions.

The taxpayer contribution limit for 401(k) and 403(b) plans did not change from 2015 and remains at $18,000.

Individuals who are age 50 and over at the end of the calendar year can make annual catchup contributions that exceed the $18,000 threshold. The catch-up contribution limit for employees age 50 and over who [ 10 ]

Maryland PHCC Contractor | Spring 2016

participate in 401(k) and 403(b) plans remains unchanged at $6,000.

The limit on annual contributions to an Individual Retirement Arrangement (IRA) remains unchanged at $5,500. The additional catch-up contribution limit for individuals age 50 and over remains at $1,000.

For further details on limitations for pension plans and other retirement-related items, visit the IRS website.

SOCIAL SECURITY ADMINISTRATION Maximum Wages Subject to Social Security Taxes.

Since there is no cost-ofliving adjustment for 2016, the maximum amount of wages subject to Social Security taxes will remain at $118,500 for 2016. Earnings above this amount are not subject to the Social Security portion of the payroll tax or used to calculate retirement payouts.

Check the Social Security Administration’s website for further details on Social Security taxes.

IMMIGRATION Employers must complete an I-9 Form for every person hired to work in the United States in return for wages or other remuneration. The current I-9 was revised March 8, 2013, and expires March 30, 2016.

When U.S. Citizenship and Immigration Services introduces a new Form I-9, you will need to update your procedures to ensure you’re properly verifying employment eligibility for every new hire. Check U.S. Citizenship and Immigration Services’ website for information on any Form I-9 or other changes.

A LOOK AHEAD The Department of Labor (DOL) announced that it expects to release in July 2016 its final rule on which white collar workers – executive, administrative, and professional employees – are entitled to the minimum

wage and overtime pay protections under the Fair Labor Standards Act (FLSA). For further details on these changes, visit the DOL’s website.

A REMINDER FOR THE NEW YEAR Review and Revise Your Employee Handbook. Chances are your company policies have changed over the past year – whether to reflect changes in law, adaptation to industry trends, new workplace challenges, or even adoption of some of the tips in PHCC articles. It bears repeating that your employee handbook could stand to be reviewed, updated, and redistributed, and that this should be done regularly.

The start of the New Year presents the perfect opportunity for action.

CONCLUSION Employment law is always changing – and that goes for states and localities as well. So make sure you’re checking not only on the agencies and topics listed here, but also on your state and locality and other high-risk areas for your business.

Be sure to work with an employment attorney, since this article does not constitute legal advice. And remember to always seek counsel from local HR professionals. By keeping these areas in mind and conducting the appropriate due diligence, you’ll be much more likely to maintain a compliant workplace.

This content was developed for the PHCC Educational Foundation by TPO, Inc. (www.tpo-inc.com). Please consult your HR professional or attorney for further advice, as laws may differ in each state. Laws continue to evolve; the information presented is as of December, 2015. Any omission or inclusion of incorrect data is unintentional.

Please note this article is not intended to provide legal advice or to substitute for supervisor employment law training.

The PHCC Educational Foundation, a partnership of contractors, manufacturers and wholesalers was founded in 1987 to serve the plumbing-heating-cooling industry by preparing contractors and their employees to meet the challenges of a constantly changing marketplace. If you found this article helpful, please consider supporting the Foundation by making a contribution at http://www. phccfoundation.org

Spring 2016 | Maryland PHCC Contractor

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You’re Invited!

Join us on Thursday, March 31, 2016 for our

Annual Trade Show & Expo March 31, 2016 Noon - 6:00 p.m.

M&T Bank Stadium Southeast Club Level, 1101 Russel Street, Baltimore

Admission and Parking (lots D & E) are FREE! The premier event for professionals in the plumbing, heating and cooling industry.

For more information, visit www.MarylandPHCC.org

See you there!

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Maryland PHCC Contractor | Spring 2016

Forget the worry of a flooded basement with innovative pumping solutions

We’ve always been control freaks Ion Technologies last much longer than traditional float switches

Ion Products digital level control systems utilize the Ion switch; a solid state sensing technology with no moving parts to wear or fail. They are designed to operate for over 2 million cycles.

Our controls warn you if your sump pump motor is starting to fail so you can replace it before the water damage happens.

Our controls warn you if it can't drain the sump pit

because the pipes are frozen, the pump is bad, the impeller is damaged, the cord is unplugged, whatever the reason.

Only if you have the Ion Solution can you really be fully protected. Call your Ion Solution Certified Installer today or find one online at www.ionproducts.net.

Questions?

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Installing innov solutions has nev

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MPPII

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Our preassembled duplex alternating system that provides 45 GPM at 10' of TDH. This system comes with two primary pumps, Ion Genesis controller and sensors and necessary piping.

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Our preassembled duplex alternating system that provides 51 GPM at 10' of TDH. This system comes with two primary pumps, Ion Genesis controller and sensors and necessary piping.

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Entry level preassembled sump pump and backup system that uses a 12 volt standby pump that will run when water level rises above normal levels. This system comes with a primary pump, Ion switch and backup pump with standard switch.

4

2100DC

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Entry level backup protection that uses a 12 volt DC pump that will run when there is a power outage. This system comes with a DC backup pump with standard switch, an 8 amp charger unit with audible alarms and battery box.

Maryland PHCC Contractor | Spring 2016

vative pumping ver been simpler

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dable lineup ever 5 Sumpro

Our most recognizable battery backup power source. Features include easy to read LCD screen for real time monitoring, alarm contact for remote monitoring and notification, solar & wind inputs for battery charging, improved charging circuit and high inrush capability.

6 35 ACi+

Our fully automatic auxiliary power source system that provides 51 GPM at 10' of TDH. This system comes with a ⅓ HP primary pump, Ion+ high water alarm/switch, power inverter with LED screen and battery box.

7 55ACi+

Our fully automatic auxiliary power source system that provides 65 GPM at 10' of TDH. This system comes with a ½ HP primary pump, Ion+ high water alarm/switch, power inverter with LED screen and battery box.

Questions?

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[ 15 ]

Basement flood protection just got a lot easier

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Introducing the Ion+ pumps 1

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Proven to pump more water than pumps with similar HP rating.

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Cast iron and stainless steel construction for increased durability.

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Low amp draw makes these pumps ideal for battery backup systems.

Econ Sump Package 18" x 24"

Econ Pit Package 18" x 30"

SHV 24" x 24" Package

Install with confidence Our packages come complete with every part needed to ensure a quick and seamless installation.

Questions?

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Maryland PHCC Contractor | Spring 2016

Maryland Plumbing-Heating-Cooling Contractors, Inc. (410) 461-5977 (410) 750-2507 fax phccmd@aol.com

PLUMBING INSTRUCTORS WANTED! Maryland PHCC Education Council are now accepting applications for Instructors to teach in our Plumbing Apprenticeship program. Classes will start in September, 2016 and end in April 2016.

Course information: Instructors receive all course information including Instructor books, curriculum, tests and grading materials necessary to teach the course.

1st and 4th year Instructors positions are available at the Center of Applied Technology, 800 Stevenson Road, Severn, MD. Classes held Monday and Wednesday evenings 6 – 9 p.m.

3rd year Instructor position available at the Essex Community College, 7201 Rossville Blvd., Baltimore, MD. Classes held Tuesday and Thursday nights 6 – 9 p.m.

Good starting salary.

Qualifications: •

Master Plumber, Master Inspector or Journey Plumber License is essential.

•

Four years trade experience is acceptable, yet a minimum of six years is preferred.

•

Prior teaching experience preferred, but not required.

For additional information and/or applications contact the PHCC office (410) 461-5977 or visit us on line phccmd@ aol.com. Resumes may be faxed to (410) 750-2507 or via e-mail phccmd@aol.com.

2016 CALENDAR OF EVENTS Board of Directors’ Meeting 1st Tuesday of the Month General Membership Meeting 2nd Thursday of the Month 32 Hour Backflow Course Thos. Somerville Co. 1510 Tilco Drive Frederick, MD April 8, 9, 10, 2016 May 13,14, 15, 2016 June 10, 11, 12, 2016 8 Hour Backflow Re-Certification Course Thos. Somerville Co. 1510 Tilco Drive Frederick, MD April 9, 2016 May 14, 2016 June 11, 2016 32 Hour Backflow Certification Course Dundalk Community College 7200 Sollers Point Road Baltimore, MD April 22, 23, 24, 2016 May 20, 21, 22, 2016 June 24, 25, 26, 2016 8 Hour Backflow Re-Certification Course Dundalk Community College 7200 Sollers Point Road Baltimore, MD April 23, 2016 May 14, 2016 June 25, 2016 Gas Fitters Training Course and Plumbing Code Review Courses For course information and schedule call (410) 461-5977.

Spring 2016 | Maryland PHCC Contractor

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HIRING AND IMMIGRATION LAWS Prepared for the PHCC Educational Foundation by TPO, Inc.

T

he HVAC and plumbing industries are facing worker shortages because of the aging workforce, job growth, and other factors. Therefore, openness to hiring immigrants can provide a new pool of potential employees.

The benefits of hiring immigrant workers is not limited to simply filling open positions. Companies can diversify their workforce, expand the business into new communities, and reach a whole new audience of potential customers. But companies must take care to follow the rules! U.S. Immigration and Customs Enforcement (ICE) routinely conducts workplace audits, and penalties for noncompliance with employee verification requirements could include fines, criminal penalties, debarment from government contracts, and court orders.

ICE has audited, debarred, and imposed fines on more companies than ever before since 2009. The president has also emphasized greater employment verification and enforcement against employers that routinely hire illegal immigrants or retaliate against employees. It’s more important than ever that small businesses understand and [ 18 ]

Maryland PHCC Contractor | Spring 2016

comply with requirements for verification of employee eligibility and nondiscrimination.

Background The Immigration Reform and Control Act (IRCA) was passed and went into effect on November 6, 1986. With its passage, for the first time, employers were required to verify that new hires were authorized to work in the United States. Specifically, IRCA: • Makes it unlawful to knowingly hire or continue to employ aliens not authorized to work in the United States: -- Actual knowledge is usually defined as direct evidence supplied by the employee, -- Constructive knowledge is generally defined as an “inference made by a reasonable person due to the totality of relevant circumstance” – that is, it’s pretty obvious to most people; •

Requires employers to actively verify the identity and employment eligibility of all employees using Form I-9;

•

Provides for employer sanctions for any unlawful hire and for failing to fulfill paperwork requirements; and

•

Prohibits discrimination based on national origin or citizenship status.

Current Status All U.S. employers must verify the employment eligibility and identity of all employees hired to work in the United States after November 6, 1986, by completing an Employment Eligibility Verification form (Form I-9) for all employees.

This includes: • U.S. citizens; •

Lawful permanent residents (green card holders);

•

Pending lawful permanent resident applicants; and

•

Nonimmigrant workers.

There are a few, very specific, exceptions to the requirement to complete an I-9 Form: • Employees hired before November 7, 1986; •

Employees hired for private, casual domestic work on an irregular basis;

•

Employees who are true “independent contractors” as defined by the IRS test proving independent contractor status;

•

Employees not physically working on U.S. soil; or

•

Employees hired by a dual employer or joint employer, where there is a defined relationship between a professional employer organization (employee leasing firm or temp agency) and the employer and where the professional employer organization bears responsibility for employment verification.

Only those employees in the above situations are exempt from completing the form. Part-time employees and individuals hired for short-term assignments are NOT exempt from completing the form.

E-Verify System The E-Verify system compares information from the I-9 Form with other federal government databases to verify workers’ employment eligibility. Specifically, employers enter information from a new hire’s I-9 into the E-Verify system, which goes to the Social Security Administration and U.S. Citizenship and Immigration Services. Those agencies then determine whether the information matches government records and whether the new hire is authorized

to work in the United States.

Since September 8, 2009, federal contractors and subcontractors have been required to use the E-Verify system to verify their employees’ eligibility to work in the United States if their contract includes the Federal Acquisition Regulation (FAR) E-Verify Clause.

The following link provides a portal to information about the E-Verify system, including webinars and updates: http:// www.uscis.gov/e-verify.

Avoiding Discrimination A little-discussed side of IRCA (as amended) involves its anti-discrimination provisions, which specifically prevent employers from engaging in unlawful conduct during recruiting, hiring, or Form I-9 processing, including: • Discriminatory document abuse – Avoid treating individuals differently on the basis of national origin or citizenship status. Don’t request that employees provide more documents than required, and don’t request particular documents. Don’t reject documents that reasonably appear to be genuine and that belong to the employee presenting them. Don’t treat groups of employees differently based on outward characteristics – treat everyone identically.

•

Citizenship or immigration status discrimination – Don’t treat individuals differently based on their citizenship or immigration status.

•

National origin discrimination – Don’t treat individuals differently based on their national origin.

•

Retaliation – Don’t intimidate, threaten, coerce, or otherwise retaliate against an individual because the individual has filed an immigration-related employment discrimination charge or complaint, has testified in such a matter, or has otherwise asserted his or her rights.

To avoid making any mistakes in this arena: • Do not set different employment eligibility verification standards or require that different documents be presented by employees because of their national origin and citizenship status. Each employee must be allowed to choose the documents that he or she will present from the lists of acceptable Form I-9 documents.

•

Do not request to see employment eligibility verification documents before hire and completion of Form I-9 because someone looks or sounds “foreign,” or because someone states that he or she is not a U.S. citizen.

Spring 2016 | Maryland PHCC Contractor

[ 19 ]

•

Do not refuse to accept a document, or refuse to hire an individual, because a document has a future expiration date.

•

Do not request that, during re-verification, an employee It is simple to set up the right system and take the present a new, unexpired Employment Authorization extra time needed to maintain the system properly. If you’re Document (EAD) if he or she presented one during initial in doubt about any aspects of what is required, seek the verification. For re-verification, each employee must be The benefits of hiring immigrant workers is not free to choose to present any limited to simply filling open positions. Companies document either from List A or can diversify their workforce, expand the business from List C.

•

Do not limit jobs to U.S. citizens unless U.S. citizenship is required for the specific position by law; regulation; executive order; or federal, state, or local government contract. On an individual basis, you may legally prefer a U.S. citizen or national over an equally qualified alien to fill a specific position, but you may not adopt a blanket policy of always preferring citizens over non-citizens.

into new communities, and reach a whole new audience of potential customers. But companies must take care to follow the rules! U.S. Immigration and Customs Enforcement (ICE) routinely conducts workplace audits, and penalties for noncompliance with employee verification requirements could include fines, criminal penalties, debarment from government contracts, and court orders.

It’s Not a Trivial Matter While ensuring the right to work in the United States has always been important, 9-11 has made this job a matter of national security as well. It is now the Department of Homeland Security that manages the I-9 process. This control has been strengthened with the addition of the E-Verify requirement for federal contractors and subcontractors and availability to all other employers.

As with much of the paperwork we face on a day-to-day basis, I-9s may seem like just another form that needs to be filled out. But this is a form that has teeth, and millions of additional dollars have been poured into auditing for these forms at employers large and small.

Failure to properly complete paperwork can generate penalties as high as $1,100 per document. Knowingly hiring an illegal alien can run as high as $3,200 per violation and grow to $16,000 per hire quickly if the infringement is repeated. Document fraud carries maximum penalties of between $3,200 and $6,500 per worker. Document abuse carries similar penalties to failures to properly complete paperwork. And unlawful discrimination can lead to maximum penalties between $3,200 and $16,000 per violation.

A pattern of practice can produce a jail sentence. And none [ 20 ]

Maryland PHCC Contractor | Spring 2016

of this takes into consideration the time, disruption, and legal costs associated with defense should you be involved in an illegal immigration matter.

assistance of a qualified human resource or immigration specialist. Your small investment of time keeps legal U.S. workers employed and helps ensure the security of our nation.

This content was developed for the PHCC Educational Foundation by TPO, Inc. (www.tpo-inc.com). Please consult your HR professional or attorney for further advice, as laws may differ in each state. Laws continue to evolve; the information presented is as of October 2015. Any omission or inclusion of incorrect data is unintentional. Please note this article is not intended to provide legal advice or to substitute for supervisor employment law training.

The PHCC Educational Foundation, a partnership of contractors, manufacturers and wholesalers was founded in 1987 to serve the plumbing-heating-cooling industry by preparing contractors and their employees to meet the challenges of a constantly changing marketplace. If you found this article helpful, please consider supporting the Foundation by making a contribution at http://www.phccfoundation.org.

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