In March 2008, Governor Haley
Barbour signed the Mississippi Employment Protection Act (“MEPA”) into
law. The mandate of MEPA is
simple: employers doing business in Mississippi must only hire citizens of the
United States and lawful foreign nationals. In progressive steps, MEPA continues to impose a significant
new layer of hiring requirements on virtually every employer doing business in
the State of Mississippi.
MEPA will require every employer
in Mississippi to register and utilize “E-Verify”—an internet-based work
authorization verification program operated and administered by the U.S.
Department of Homeland Security, in partnership with the Social Security
Administration. “E-Verify” allows
employers to submit the social security numbers of new hires to verify their
employment eligibility. While use
of the system is voluntary under federal law, MEPA became mandatory for
Mississippi employers with 30 or more employees on July 1, 2010. Smaller employers will be required to
comply with MEPA by July 1, 2011.
Under MEPA, an “employer” is a
person or business that is required to issue a Form W-2 of Form 1099 to any
employed or contracted personnel in Mississippi—thus burdening those businesses
utilizing independent contractors, as well as traditional employees, MEPA also
specifically targets so-called “third-party employers,” such as employee
leasing companies, and subcontractors. Several exemptions are provided to MEPA, including individual homeowners
who hire workers on their private property for non-commercial purposes.
The “E-Verify” program is nearly
entirely internet-based. Employers register for participation in “E-Verify” online. The verification process through
“E-Verify” will vary depending on the size and unique needs of each
employer. For small employers with one “hiring location,” only one location will need to be registered and set-up
as a verification site, while larger companies with multiple “hiring locations”
can choose to designate one site to perform the employment verification
inquiries on behalf of the entire company, or choose multiple sites to perform
employment verification. “E-Verify” also provides for the “outsourcing” of the verification process through the use
of “designated agents,” or liaisons between “E-Verify” and employers who choose
to have a third-party handle the submission of employment eligibility
verification queries for newly hired employees.
The penalties for violations of
MEPA can be substantial, both to employers and employees. Under MEPA, employers that hire
unauthorized workers may be declared ineligible for public contracts for up to three years, or may lose any license
or permit to do business within the state for up to one year, or both. Additionally, MEPA appears to create a
private right of action of discrimination for a discharged employee that is a
U.S. Citizen or permanent resident alien, if the employer retained an
unauthorized worker in a job category involving similar skill, responsibility,
and working conditions. However, an employer registering and using “E-Verify” is provided a safe-harbor against
liability or suit under the MEPA. For workers, MEPA makes it a felony—punishable by up to 5 years in
prison or a $10,000 fine or both—for an unauthorized alien to knowingly accept
employment for which he or she was not authorized.
Although several questions remain
unanswered regarding MEPA, Mississippi’s employers—those with 30 or more
employees—must implement this new layer of hiring duties effective July 1, 2010.
Please feel free to visit our website at www.Brunini.com where we have a dedicated link to healthcare reform materials.
This Newsletter is a publication of the Labor and Employment Department of the law firm of Brunini, Grantham, Grower & Hewes located in Jackson, Mississippi.. The Newsletter is not designed or intended to provide legal or professional advice, as any such advice requires the consideration of the facts of the specific situation.
