Immigration Reform, What does it mean to our industry?
Immigration law has always been a complicated and divisive topic in this country. On average, about 1.8 million people immigrate to the USA each year. These foreign nationals enter the country looking for better opportunities for themselves and their families. While many enter via legal channels, some enter the US without governmental permission and in violation of United States immigration law, or they overstay their visa, in violation of the law as well.
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Private household employment is a common choice for immigrants who do not have the necessary work authorization to pursue employment elsewhere. Both employers and employees agree to an “under the table” payment arrangement, bypassing tax obligations. Employer and employee both avoid required payroll tax expenses, and the US Treasury never receives tax revenue it is due. This is commonly referred to as “working in the shadows” and a new legislative move is afoot to reform immigration laws and regularize the approximately 11 million non-documented workers in the United States.
The Border Security, Economic Opportunity and Immigration Modernization Act, approved May 21, 2013 by the Senate Judiciary Committee, is under debate on the Senate floor as this is written. Below are some highlights of the proposed law now being considered:
The impact of immigration reform on the household employment industry is unclear. Will families cooperate and begin paying their nannies and housekeepers on the books, at increased cost to them? Will immigrants currently ‘working in the shadows’ in domestic service want to take advantage of the provisional resident status, with an economic cost to them? How will agencies verify legal work eligibility of applicants when e-Verify is 100% phased in?
HomeWork Solutions will periodically post immigration reform updates on its blog – we encourage readers to subscribe. What a final bill will actually look like, and whether in fact it will pass at all, remains very much up in the air.
by Vanessa Vidal, FPC HomeWork Solutions Inc.