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HireRight Report Reveals Significant Growth in Use of E-Verify by Employers.

IRVINE, Calif. -- HireRight, a leader in employment screening and employment eligibility solutions, today announced that its 2011 Employment Screening Benchmarking Report results indicate an increasing focus by employers on ensuring accuracy and compliance in their employment eligibility programs to protect against government audits, penalties and fines. The report, which is based on a survey of nearly 1,800 human resources and other professionals, showed a significant rise in the use of E-Verify; a focus by employers on compliance and the need to prepare for government audits; and that the majority of organizations continue to rely on a manual, paper-based process to manage the Form I-9 and employment eligibility verification program.

The 2011 report revealed that 51 percent of respondents indicated they currently use E-Verify versus 28 percent in the 2010 report. Pointing to a continued increase in adoption, 11 percent of those surveyed this year reported they were not using E-Verify today but plan to use it in the future. E-Verify is an online database, developed by the U.S. Citizenship and Immigration Services (USCIS), that electronically compares employee-provided information from Form I-9 against records in the Social Security Administration and Department of Homeland Security databases in order to verify an individual's eligibility to work within the United States.

The report also shows that while organizations are increasingly automating their I-9 process, 60 percent of respondents continue to manage the employment eligibility process using a manual, paper-based process.

While the majority of respondents (69 percent) reported feeling completely or very prepared for a U.S. Immigration and Customs Enforcement (ICE) Notice of Inspection or audit, the complexity of I-9 requirements can make an audit extremely difficult for employers when the program is not managed with a software-based solution.

"It's clear that employment eligibility verification requirements are a hot topic in the U.S. right now," said Rob Pickell, HireRight senior vice president of customer solutions. "The continued increase of related legislation, companies' growing interest in ensuring employment eligibility, a need to be ready for an ICE audit, and the demonstrated accuracy of the federal verification system are driving the adoption of automated solutions and E-Verify. We've seen a significant increase in demand for E-Verify and our I-9 Solution in the past 12 months."

While the use of E-Verify was originally mandated only for companies with federal or certain state contracts, there is today a growing trend toward making E-Verify the standard for verifying right to work. This was recently seen in Louisiana where the state is pursuing a law under which employers can use E-Verify (or retain copies of certain identity and legal status documents) and achieve a presumption of good faith with regard to all employees who are verified by the system. Legislation and regulations requiring employers to use E-Verify have already been enacted in 18 states.

Reliance on E-Verify is not misplaced. According to USCIS, 98.3 percent of E-Verify cases are automatically work authorized. Only 0.3 percent result in initial mismatches that are later determined to be eligible to work, and roughly one in 100 (1.4 percent) are found to be ineligible to work in the United States through the program. The growing interest in E-Verify may be no better exemplified than by the more than 1,400 additional employers who enroll in the program each week.

"While companies are wise to rely on E-Verify, manual processes for I-9 record-keeping can be a minefield for organizations, and the penalties can be substantial," said Pickell.

It is estimated that 35 to 55 percent of paper I-9s contain incorrect or missing information.1 Employers face fines for technical I-9 errors that begin at $110 per error and can climb into the tens of thousands for repeat and grave offenses. The most common I-9 errors include: incorrect or missing forms, being out of compliance with time of completion rules, failure to re-verify employee work authorization, invalid identification documents, and incorrect document maintenance such as destruction of documents after termination. The complexity of the I-9 process and ICE audits can present significant challenges for employers in successfully surviving an audit when automated systems are not used.

About the Report

The HireRight 2011 Employment Screening Benchmarking Report is based on survey responses to dozens of questions from nearly 1,800 participants, representing employers around the globe. The employers ranged in size from less than 49 employees to more than 25,000, across all major industry categories. To download a copy of the HireRight 2011 Employment Screening Benchmarking Report, go to www.hireright.com/benchmarking.

About HireRight

HireRight is a leading provider of on-demand employment background screening, drug and health screening and employment eligibility solutions that help employers automate, manage and control screening and related programs. Many companies, including more than one-third of the Fortune 500, trust HireRight because the company delivers customer-focused solutions that provide greater efficiency and faster results. HireRight also provides pre-integrated employment screening services through e-recruiting solutions from top providers such as Oracle, Taleo, Kenexa, SAP, ADP/VirtualEdge, PeopleAdmin, HealthcareSource, HRsmart, and SilkRoad. HireRight, Inc. is an Altegrity company with worldwide headquarters located in Irvine, California and offices and affiliates around the globe. For more information, visit the company's web site at www.hireright.com.

1 Source: nowHIRE, http://www.nowhire.com/I9conversion.html

Copyright [c] 2011 HireRight, Inc. All Rights Reserved. All other trademarks are the property of their respective owners.

HireRight prepared this news release for informational purposes only. The release is not a substitute for, and should not be construed as, legal advice. HireRight does not warrant any statements in these materials. Employers should direct questions involving interpretation or application of laws or regulations and any additional legal requirements that may apply to their own experienced legal counsel.
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Publication:Business Wire
Geographic Code:1U9CA
Date:Sep 15, 2011
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