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Jul23

Requirements in regard to I-9 compliance

My financial institution is restructuring and we are going to be an independent organization, breaking away from our parent company. All current employees are going to be retained, but are required to execute new employment applications.

Is it necessary for these employees to execute new I-9 forms as well?

Thank You
Lou Barbato

Without knowing all the details of the structure of the new company, our answer would be a qualified yes. If you are having employees complete applications and new W-4 forms, it sounds as if they are actually new hires of a new business entity. In that case, an I-9 would be required.

If the employees were merely being transferred to a different department, then no new W-4 or I-9 would be required. In tha tcase, the employees would usually retain their seniority, vacation, sick leave and other benefits.

You may want to consult an attorney to determine which is the case here. Legally you must get an I-9 from a new hire, but it would be illegal for you to require existing employees to complete a new I-9.

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This entry was posted on Friday, July 23rd, 2010 at 8:31 am and is filed under
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