Counsel’s Corner: Companies are Eager & Fast to Hire

Disclaimer: This document and any discussions set forth herein are for informational purposes only, and should not be construed as legal advice, which has to be addressed to particular facts and circumstances involved in any given situation. Review or use of the document and any discussions does not create an attorney-client relationship with the author or publisher. To the extent that this document may contain suggested provisions, they will require modification to suit a particular transaction, jurisdiction or situation.

LABOR DEFICIT, COMPANIES ARE EAGER AND FAST TO HIRE: here are high level reminders for New-Hire Procedures

WASHINGTON

Overview: Employers can be subject to certain restrictions and requirements when hiring employees. This summary covers hiring topics that aren’t covered elsewhere. Topics such as background checks, employment eligibility verification, job references, medical examinations, and drug testing are covered in separate publications.

Coverage: Reporting requirements – Public and private employers are covered by the new-hire reporting requirements if they do business in Washington. This summary covers requirements for private-sector employment, excluding industry/occupation-specific requirements.

Reporting Requirements: Employers must report new hires to the Washington state support registry. New hires are workers who reside or work in Washington and to whom employers anticipate paying earnings. They include employees who have been separated from prior employment for at least 60 consecutive days.

New-hire reports must contain the following information:

  • employees’ name, address, Social Security number, and date of birth;
  • the date of hire, which is the date when employees first performed paid services or returned to perform paid services after layoff, furlough, unpaid leave, or separation from employment; and
  • employers’ name, address, and federal employer identification number.


Filing Procedures and Deadlines: Employers must submit new-hire reports by using, to the extent practicable, federal Form W-4 or an equivalent form. Employers that use W-4 forms can write or type the date of birth and date of hire on the forms. The forms can be submitted electronically or by first-class mail, fax, or other methods authorized by the Washington state support registry.

Employers must submit new-hire reports within 20 days after an employees’ hire, rehire, or return to work date or through twice-monthly magnetic or electronic submissions made 12 to 16 days apart.

Administration/Enforcement:

  • Worker-status misclassification – The federal Department of Labor’s Wage and Hour Division can enter into memoranda of understanding with state agencies to address the misclassification of employees as independent contractors. These partnerships provide for data sharing, referrals, coordinated enforcement, joint outreach, and compliance assistance.
  • Reporting requirements – The Washington State Department of Social and Health Services administers the new-hire reporting requirements and its Division of Child Support enforces the requirements. The division can issue a notice to employers if it believes they have failed to comply with the requirements. Fines assessed in the notice are final, unless employers (within 20 days after receiving the notice) initiate court action to contest the notice, submit a hearing request to the division, or contact the division to negotiate an alternate solution or to demonstrate compliance. If a hearing is held, the division determines employer liability for noncompliance and issues an order. If they are held liable, the division can collect fines without further notice. Employers can request a hearing after the 20-day period, if they can demonstrate certain grounds for voiding the order; however, this request doesn’t delay the division’s collection of fines.

Reference Citations: Wash. Rev. Code §§ 26.23.040, 74.20A.350; Wash. Admin. Code § 388-14A-8200


IDAHO

Overview: Employers can be subject to certain restrictions and requirements when hiring employees. This summary covers hiring topics that aren’t covered elsewhere. Topics such as background checks, employment eligibility verification, job references, medical examinations, and drug testing are covered in separate publications.

Coverage: Employment relationship – Employers are covered by the employment relationship provisions.

Reporting requirements (multi-state): Employers, labor organizations, and other entities for whom people perform services are covered by the new-hire reporting requirements if they do business in Idaho and control the payment of wages for services. The requirements don’t apply to multistate employers if they notify the federal Department of Health and Human Services in writing that they will transmit new-hire reports magnetically or electronically to another state. The requirements also don’t apply to federal government employers. This summary covers requirements for private-sector employment, excluding industry/occupation-specific requirements.

If multistate employers notify the federal Department of Health and Human Services that they will transmit all of their new-hire reports to Idaho, they must indicate on new-hire reports whether each employee will be included in their Idaho quarterly wage report for unemployment insurance purposes.

Reporting Requirements (Idaho): Employers must report new hires and rehires who work in Idaho to the Idaho Department of Labor. Rehires are employees who were laid off, furloughed, granted leave without pay, terminated or separated from employment at least 60 consecutive days before their re-employment.

New-hire reports must contain the following information:

  • employees’ name, address, and Social Security number;
  • the hire or rehire date, which is the date when employees actually began to perform paid services; and
  • employers’ name, address, federal employer identification number, and state unemployment insurance account number (if applicable).

Filing Procedures and Deadlines: Employers must submit new-hire reports by using a copy of employees’ federal Form W-4 or by other means approved by the Idaho Department of Labor. The reports can be submitted by mail, fax, or other means authorized by the department.

Employers must submit new-hire reports within 20 calendar days after employees’ hire or rehire date or through twice-monthly electronic submissions made 12 to 16 days apart. New-hire reports are considered to be submitted on the postmark date if mailed or on the date they are received by the department if transmitted by other means.

Administration/Enforcement:

  • Worker-status misclassification – The federal Department of Labor’s Wage and Hour Division can enter into memoranda of understanding with state agencies to address the misclassification of employees as independent contractors. These partnerships provide for data sharing, referrals, coordinated enforcement, joint outreach, and compliance assistance.
  • Reporting requirements – The Idaho Department of Labor administers the new-hire reporting requirements. Employers aren’t liable to employees for disclosing or subsequently using information pursuant to the requirements.

Reference Citations: Employment relationship: Idaho Code Ann. § 44-905
Reporting Requirements: Idaho Code Ann. §§ 72-1603 to 72-1604, 72-1607


MONTANA

Overview: Employers can be subject to certain restrictions and requirements when hiring employees. This summary covers hiring topics that aren’t covered elsewhere. Topics such as background checks, employment eligibility verification, job references, medical examinations, and drug testing are covered in separate summaries.

Coverage: Reporting requirements – Employers are covered by the new-hire reporting requirements if they do business in Montana, pay compensation to employees, and withhold state or federal taxes from such compensation. This summary covers requirements for private-sector employment, excluding industry/occupation-specific requirements.

Reporting Requirements: Employers must report new and rehired employees to the Montana Department of Public Health and Human Services if they anticipate paying income to these employees. Employees are adults (age 18 and older) who perform paid labor in Montana for employers that withhold state or federal taxes from such pay. Employees are rehired on the first day they perform work or provide services for a former employer after termination from employment with the employer. Termination from employment doesn’t include unpaid leave, temporary or seasonal layoffs, or temporary separations from employment lasting less than 60 days.

New-hire reports must contain the following information:

  • employees’ name, Social Security number, home address, and mailing address;
  • the date of hire, which is the first day that employees performed paid work; and
  • employers’ name, address, and federal employer identification number.
  • New-hire reports also can include information on:
  • employees’ date of birth;
  • employer-provided health or medical insurance coverage that can be extended to employees’ children; and
  • the date when employees are eligible for this coverage.

Multistate employers can designate and report to a single state where they have employees if they notify the federal Department of Health and Human Services of the designated state in writing and submit new-hire reports magnetically or electronically.

Filing Procedures and Deadlines: Employers must submit new-hire reports by using a copy of employees’ completed federal Form W-4, an equivalent form, or another format approved by the Montana Department of Public Health and Human Services. The forms can be submitted magnetically, electronically, or by first-class mail, fax, or another method approved by the department.

Employers must submit new-hire reports within 20 days after employees’ hire or rehire date or through twice-monthly magnetic or electronic submissions made 12 to 16 days apart.

Administration/Enforcement:

  • Worker-status misclassification – The federal Department of Labor’s Wage and Hour Division can enter into memoranda of understanding with state agencies to address the misclassification of employees as independent contractors. These partnerships provide for data sharing, referrals, coordinated enforcement, joint outreach, and compliance assistance.
  • Reporting requirements – Employers aren’t liable to employees for disclosing information in compliance with the new-hire reporting requirements.

Reference Citations/Reporting Requirements: Mont. Code Ann. §§ 40-5-901, 40-5-922

OREGON

Overview: Employers can be subject to certain restrictions and requirements when hiring employees. This summary covers hiring topics that aren’t covered elsewhere. Topics such as background checks, employment eligibility verification, job references, medical examinations, and drug testing are covered in separate summaries.

Coverage: Reporting requirements – Public and private employers are covered by the new-hire reporting requirements if:

  • their employees only work in Oregon; or
  • their employees work in multiple states and they designate Oregon as the state to which they submit new-hire reports.

This summary covers requirements for private-sector employment, excluding industry/occupation-specific requirements.

Reporting Requirements: Employers must report newly hired and rehired employees to the Oregon Division of Child Support if they anticipate paying compensation to these employees. Employees are those who reside or work in Oregon and are subject to federal Form W-4 filing requirements. Rehired means re-employed after a layoff, furlough, unpaid leave, or separation or termination from employment lasting more than 60 days.

New-hire reports must contain the following information:

  • employees’ name, address, and Social Security number;
  • the date when employees first performed paid services; and
  • employers’ name, address, and federal employer identification number.

Multistate employers can designate and report to a single state if they notify the federal Department of Health and Human Services of the designated state.

Filing Procedures and Deadlines: Employers must submit new-hire reports by using a copy of employees’ federal Form W-4 or an equivalent form approved by the Oregon Division of Child Support. The forms can be submitted by mail, fax, magnetic tape, diskette, or another method approved by the division.

Employers must submit new-hire reports within 20 days after employees’ hire or rehire date or through monthly magnetic or electronic submissions made 12 to 16 days apart.

Administration/Enforcement:

  • Worker-status misclassification – The federal Department of Labor’s Wage and Hour Division can enter into memoranda of understanding with state agencies to address the misclassification of employees as independent contractors. These partnerships provide for data sharing, referrals, coordinated enforcement, joint outreach, and compliance assistance.
  • Reporting requirements – The Oregon Department of Justice’s Division of Child Support administers the new-hire reporting requirements.

Reference Citations/Reporting Requirements: Or. Rev. Stat. § 25.790; Or. Admin. R. 137-055-4040; Oregon Department of Justice, Division of Child Support, Reporting New Hires