New I-9 Form

Q. I own a small business and heard there is a new I-9 form for new hires. Where do I get one?

A. The updated version of the Form I-9, Employment Eligibility Verification, is now available here, on the website for the U.S. Citizenship and Immigration Services (USCIS). This form is dated Aug. 7, 2009 and will expire in 2012.

Classifying Workers - Tips for Business Owners

Q. I own a small business and am confused about how to classify my workers. Are they employees or independent contractors? Is there any guidance?

A. Yes. You are not alone in your confusion. This is a complex area of the law with serious implications for both the company and the workers.

To get you started, you may want to check out guidance issued by the Internal Revenue Service last week.

Here's the link: Employee vs. Independent Contractor - Ten Tips for Business Owners.

Small Business Employment Training?

Q. I own a small business in Colorado and am interested in learning more about what our company can do to prevent unlawful discrimination at work. Does the state offer any training for companies?

A. Yes. The State of Colorado's Civil Rights Division is offering a series of no-charge seminars in Denver and throughout Colorado. They offer seminars called Employment 101 and Sexual Harassment.

The next Employment 101 seminar will be held on October 5, 2009.

The next Sexual Harassment seminar will be held on October 6, 2009.

For more information and to register, visit the CCRD's Training Schedule here.

Deduct wages?

Q: My employer is considering adopting a policy of imposing a 5% wage penalty for violations of company rules. Can employers do that?

A. If you live in Colorado, it may be a violation of the state law, depending on the circumstances.

Here's what a Colorado statute says about wage deductions:

8-4-105. Payroll deductions permitted.

		(1) No employer shall make a deduction from the wages or compensation of an employee except as follows:

		(a) Deductions mandated by or in accordance with local, state, or federal law including, but not limited to, deductions for taxes, "Federal Insurance Contributions Act" ("FICA") requirements, garnishments, or any other court-ordered deduction;

		(b) Deductions for loans, advances, goods or services, and equipment or property provided by an employer to an employee pursuant to a written agreement between such employer and employee, so long as it is enforceable and not in violation of law;

		(c) Any deduction necessary to cover the replacement cost of a shortage due to theft by an employee if a report has been filed with the proper law enforcement agency in connection with such theft pending a final adjudication by a court of competent jurisdiction; except that, if the accused employee is found not guilty in a court action or if criminal charges related to such theft are not filed against the accused employee within ninety days after the filing of the report with the proper law enforcement agency, or such charges are dismissed, the accused employee shall be entitled to recover any amount wrongfully withheld plus interest. In the event an employer acts without good faith, in addition to the amount wrongfully withheld and legally proven to be due, the accused employee may be awarded an amount not to exceed treble the amount wrongfully withheld. In any such action the prevailing party shall be entitled to reasonable costs related to the recovery of such amount including attorney fees and court costs.

		(d) Any deduction, not listed in paragraph (a), (b), or (c) of this subsection (1), which is authorized by an employee if such authorization is revocable including, but not limited to, deductions for hospitalization and medical insurance, other insurance, savings plans, stock purchases, voluntary pension plans, charities, and deposits to financial institutions;

		(e) A deduction for the amount of money or the value of property that the employee failed to properly pay or return to the employer in the case where a terminated employee was entrusted during his or her employment with the collection, disbursement, or handling of such money or property. The employer shall have ten calendar days after the termination of employment to audit and adjust the accounts and property value of any items entrusted to the employee before the employee's wages or compensation shall be paid as provided in section 8-4-109. This is an exception to the pay requirements in section 8-4-109. The penalty provided in section 8-4-109 shall apply only from the date of demand made after the expiration of the ten-day period allowed for payment of the employee's wages or compensation. If, upon such audit and adjustment of the accounts and property value of any items entrusted to the employee, it is found that any money or property entrusted to the employee by the employer has not been properly paid or returned the employer as provided by the terms of any agreement between the employer and the employee, the employee shall not be entitled to the benefit of payment pursuant to section 8-4-109, but the claim for unpaid wages or compensation of such employee shall be disposed of as provided for by this article.

		(2) Nothing in this section authorizes a deduction below the minimum wage applicable under the "Fair Labor Standards Act of 1938", 29 U.S.C. sec. 201 et seq.

This law defines "employee" and "employer" as follows:

(4) "Employee" means any person, including a migratory laborer, performing labor or services for the benefit of an employer in which the employer may command when, where, and how much labor or services shall be performed. For the purpose of this article, an individual primarily free from control and direction in the performance of the service, both under his or her contract for the performance of service and in fact, and who is customarily engaged in an independent trade, occupation, profession, or business related to the service performed is not an "employee".

		(5) "Employer" means every person, firm, partnership, association, corporation, migratory field labor contractor or crew leader, receiver, or other officer of court in Colorado, and any agent or officer thereof, of the above mentioned classes, employing any person in Colorado; except that the provisions of this article shall not apply to the state or its agencies or entities, counties, cities and counties, municipal corporations, quasi-municipal corporations, school districts, and irrigation, reservoir, or drainage conservation companies or districts organized and existing under the laws of Colorado.

You should consult legal counsel for an analysis of your particular situation.