How Does the Government Shutdown Affect Your Business?

January 25, 2019

As the federal government shutdown continues, it stands to be one of the longest political stand-offs in history. In 2018, our country experienced 3 partial government shutdowns. The shutdown creates a ripple effect with impact well beyond the federal level. Employers are being forced to halt regular hiring practices due to the lack of E-Verify programs. Also, businesses that are dependent on federal workers as customers are losing revenue quickly. So how does this affect you and your company?

E-Verify is down. 

With the E-Verify system being down, employers are at risk of hiring illegal immigrants. E-Verify is a web-based federal program that allows enrolled employers to verify that potential hires are citizens of the United States. The system electronically matches information provided by employees on their Form I-9, Employment Eligibility Verification, against records available to the Social Security Administration and the Department of Homeland Security (DHS). It’s important to note that although the E-Verify system is down, employers are still required to complete the I-9 verification process by the third business day after an employee begins working for pay. With this program being shut down, employers will not be able to:

– Enroll in E-Verify

– Terminate/Add/Edit current accounts

– Reset passwords

– Run reports

– Create E-Verify classes

– View or take action on any E-Verify case

U.S. Citizenship and Immigration Services has put temporary policies in place that suspend the 3-day rule for E-Verify cases affected by the unavailability of E-Verify. They have also extended the period during which employees may resolve E-Verify Tentative Non-Confirmations (TNCs). While this doesn’t reduce the shutdown’s impact on employers, it will relieve the pressures of completing the E-Verify process while still keeping to the 3-day rule.

The economy is taking a hit.   

Reports say that some 800,000 federal workers have been furloughed, put out of work temporarily due to lack of funding, while thousands of other federal employees are working without pay. So how does this affect your organization? For companies who rely on federal workers as customers, this means a drop in revenue. So far, 1,800 GoFundMe pages have launched in order to provide resources to federal workers. Those resources may include anything from free lunches to cheaper phone bills. Because federal employees are now searching for side jobs to fill basic needs, they won’t have the financial freedom to afford luxury spending or recreation. This makes it hard on small businesses that are located near federal offices and primarily serve that community.

In addition, companies who are looking to the U.S. Small Business Administration for a loan will have to hold off until the shutdown is over. Due to lack of funding, no loans are being given out.

We can help. 

While the shutdown has affected thousands of people, we can help manage its impact on your company. Our team is up-to-date on federal regulation including new laws introduced during a partial government shutdown. We can also manage the E-Verify process and provide a comprehensive I-9 review for all existing and new employees.

Any kind of government shutdown can be confusing and stressful for employers to endure. We’re here to make things easier.

At SourcePointe, we utilize our industry-experience to provide you with a multitude of customizable HR services, support, and solutions. All so your business can do one thing – more business. We’ll provide tailor-made solutions that fit your company’s needs while providing a solid return on your investment that pays off immediately – and for many years after that. 

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