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HR Alert: Purging Old I-9s (by HR NETwork)

Employers often fail to shred old Forms I-9 that are beyond the retention requirement, even though this can lead to compliance liability.

Why does it matter?

U.S. Immigration and Customs Enforcement (ICE) typically gives employers only three business days to produce I-9s and associated documentation. In the mad dash of responding to this notice of inspection (NOI), employers may not have the time or resources to remove or pull out those purgeable I-9s from the documents sent to ICE. In such cases, the agency may review and consider the old I-9s in assessing paperwork fines and penalties against the employer.

Errors on forms for terminated employees are difficult, if not impossible, to correct. In the event of an ICE audit, such errors could create compliance violations that cannot be mitigated.

Timely purging is a great general risk-mitigation strategy, especially considering that a completed I-9 has much personally identifiable information, including an employee’s name, Social Security number and address.

How Long Must I-9s Be Kept?

I-9s must be retained either one year after the date of termination or three years after the date of hire, whichever is later.

Some employers have read that requirement and mistakenly interpreted it to mean that they could destroy I-9 forms of their current employees after a three-year period. But the retention period for an I-9 comes into play only after the employment is terminated.

If you use a third-party administrator to maintain the I-9 records on behalf of the company, the same retention rules apply and it is recommended that you ensure the third-party administrator have implemented a compliant retention policy said.

How Should Employers Get Rid of Old I-9s?

The National Institute of Standards and Technology recommends for destroying paper files using a cross-cut shredder.

Similarly, I-9s stored in an electronic format should also be purged using a well-documented and secure data wipe process that prevents information from later being recovered or retrieved.

What Are the Risks of Purging I-9s Prematurely?

Accidental or premature purging of I-9s can be disastrous, particularly when an employer receives an NOI from ICE demanding I-9s that no longer exist. In those instances, the employer will need to complete new I-9s as soon as possible, and even then, they still face potential liability for late-completed verifications.

Employers that purge I-9s too early and are found to be out of compliance can face penalties as high as approximately $2,300 per I-9 on average.

Bottom line: It is prudent to make a purge process part of the I-9 compliance.

For more information, please reach out to HR Network, one of our preferred partners at 714-799-1115.

Audrianne Adams Lee – Ext. 104

Visit their website at www.hrnetworkinc.com to see a list of their services they provide.

Article written by HR NETwork as of July 26, 2023.

Second Rx Report Due June 1, 2023

Health plan and health insurance issues must submit their second prescription drug data report by June 1, 2023, as part of the annual reporting requirements. Employers and insurance carriers will generally submit these reports on an annual basis no later than June 1st of each year, reporting information for the prior calendar year.

 

RxDc Compliance Guide

To comply with the RxDC reporting requirements, employers should consider doing the following:

  • Contact issuers, such as TPAs o PBMs, to ask if they will submit the report for your health plan
  • Ensure your third-party RxDC submission agreement is updated
  • Monitor the third party’s adherence to the RxDC reporting requirement for self-funded health plans.
  • Provide any information that is requested by the third party submitting the RxDC report for your health plan as soon as possible.

 

Third Party Issuers

Health plans can use third-party issuers, such as TPA and PBM, to submit an RxDc report on their behalf. Health plans may submit RxDC reports on their own, but the occurrence is uncommon. The following information outlines procedures and rules that should be considered when using an issuer:

  • A formal agreement between the plan and the third party must be constructed to address this reporting obligation.
  • The issuer, not the plan, is in violation of the reporting requirements if it fails to submit the RxDC report when required to do so.

 

General Deadlines

The initial RxDC report was due December 27, 2022, with a grace period through January 31, 2023. The first report should contain prescription drug data from 2020 and 2021. The second RxDC report should contain prescription drug data from 2022 and meet the June 1, 2023 deadline.

 

Resources

CMS.gov provides the following resources:

  • On Nov. 23, 2021, the Departments published an interim final ruleregarding the requirement to report pharmacy and drug costs.
  • Transparency in coverage FAQswere released on Aug. 20, 2021.
  • An FAQabout the submission grace period and reporting flexibilities for 2020 and 2021 data was released on Dec. 23, 2022.
  • More information, including RxDC reporting instructions, is available through the HHS’ RxDC website.
  • Prescription Drug Data Collection (RxDC) Reporting Instructions: https://regtap.cms.gov/reg_librarye.php?i=3860

 

For more information on this topic, please contact MNJ Insurance Solutions.

This Rx reporting summary is provided for informational purposes only and should not be construed as legal or a recommendation of any kind. While we have attempted to provide current, accurate, and clearly expressed information, this information is provided “as is,” and MNJ Insurance Solutions makes no representations or warranties regarding its accuracy and completeness.