Sie sind auf Seite 1von 24

27

CHAPTER 17: EMPLOYMENT, IMMIGRATION, AND LABOR LAW

Chapter 17
Employment, Immigration,
and Labor Law
TRUE/FALSE QUESTIONS
1.

There are no exceptions to the employment-at-will doctrine.


ANSWER: F
NAT: AACSB Analytic

2.

PAGE:

567
AICPA Legal

TYPE:

PAGE:

568
AICPA Legal

TYPE:

Firing a worker who refuses to perform an illegal act violates public


policy.
ANSWER: T
NAT: AACSB Analytic

5.

TYPE:

The whistleblower doctrine protects employers from workers


disclosure of the employers wrongdoing.
ANSWER: F
NAT: AACSB Analytic

4.

567
AICPA Legal

An oral promise that an employer makes to employees regarding


discharge policy may be considered part of an implied contract.
ANSWER: T
NAT: AACSB Analytic

3.

PAGE:

PAGE:

568
AICPA Legal

TYPE:

Children under fourteen years of age cannot work in hazardous


occupations.
ANSWER: T
NAT: AACSB Analytic

PAGE:

569
AICPA Legal

TYPE:

28
6.

UNIT THREE: BUSINESS AND EMPLOYMENT

Federal wage-hour laws cover all employers engaged in interstate


commerce.
ANSWER: T
NAT: AACSB Analytic

PAGE:

569
AICPA Legal

TYPE:

29

CHAPTER 17: EMPLOYMENT, IMMIGRATION, AND LABOR LAW

7.

All employees are entitled to overtime pay.


ANSWER: F
NAT: AACSB Analytic

8.

570
AICPA Legal

TYPE:

PAGE:

574
AICPA Legal

TYPE:

PAGE:

575
AICPA Legal

TYPE:

PAGE:

575
AICPA Legal

TYPE:

The basis for contributions to help pay for an employees loss of


income on retirement is the employees annual wage base.
ANSWER: T
NAT: AACSB Analytic

13.

PAGE:

An employee who receives workers compensation can maintain a


suit against the employer for negligence.
ANSWER: F
NAT: AACSB Analytic

12.

To recover workers compensation, an employee must prove that an


injury was the fault of the employer.
ANSWER: F
NAT: AACSB Analytic

11.

TYPE:

Employers who willfully violate safety regulations can be prosecuted


under state criminal laws.
ANSWER: T
NAT: AACSB Analytic

10.

570
AICPA Legal

Under federal law, the term wages includes only a set amount of pay
expressed in dollars.
ANSWER: F
NAT: AACSB Analytic

9.

PAGE:

PAGE:

575
AICPA Legal

TYPE:

Employers who provide pension plans for retired workers must


comply with certain standards in how the pension funds are
invested.
ANSWER: T
NAT: AACSB Analytic

PAGE:

576
AICPA Legal

TYPE:

30
14.

UNIT THREE: BUSINESS AND EMPLOYMENT

Most employees can continue the group health benefits provided by


their employers for a limited period of time after the loss of
employment.
ANSWER: T
NAT: AACSB Analytic

15.

578
AICPA Legal

TYPE:

PAGE:

581
AICPA Legal

TYPE:

PAGE:

582
AICPA Legal

TYPE:

PAGE:

586
AICPA Legal

TYPE:

Good faith is not a defense to a charge that an employer fails to


possess certain paperwork with respect to its employees.
ANSWER: T
NAT: AACSB Analytic

20.

PAGE:

An employer may hire an illegal immigrant if the employer files a


special form.
ANSWER: F
NAT: AACSB Analytic

19.

Generally, an employers monitoring of electronic communications in


the workplace does not violate employees privacy rights.
ANSWER: T
NAT: AACSB Analytic

18.

TYPE:

No employee has a reasonable expectation of privacy in the


workplace.
ANSWER: F
NAT: AACSB Analytic

17.

577
AICPA Legal

Certain employers must provide their employees with up to twelve


weeks of family or medical leave during any twelve-month period.
ANSWER: T
NAT: AACSB Analytic

16.

PAGE:

PAGE:

586
AICPA Legal

TYPE:

An employee is the party legally responsible for any problems in


verifying his or her identity and eligibility to work in the United
States.
ANSWER: F
NAT: AACSB Analytic

PAGE:

586
AICPA Legal

TYPE:

31

CHAPTER 17: EMPLOYMENT, IMMIGRATION, AND LABOR LAW

21.

An employer must verify documents establishing a prospective


workers identity and eligibility to work in the United States.
ANSWER: T
NAT: AACSB Analytic

22.

590
AICPA Legal

TYPE:

PAGE:

590
AICPA Legal

TYPE:

PAGE:

591
AICPA Legal

TYPE:

PAGE:

592
AICPA Legal

TYPE:

An employer can refuse to bargain collectively with an elected


employee representative.
ANSWER: F
NAT: AACSB Analytic

27.

PAGE:

To hire noncitizen workers from other countries, an employer must


first complete a labor certification process.
ANSWER: T
NAT: AACSB Analytic

26.

A company seeking to hire a noncitizen worker may do so if the


worker is self-authorized.
ANSWER: T
NAT: AACSB Analytic

25.

TYPE:

In general, the state governments enforce the current immigration


laws.
ANSWER: F
NAT: AACSB Analytic

24.

586
AICPA Legal

Criminal penalties apply to employers who engage in a pattern or


practice of immigration law violations.
ANSWER: T
NAT: AACSB Analytic

23.

PAGE:

PAGE:

593
AICPA Legal

TYPE:

It is an unfair employer practice to discriminate against an employee


on the basis of union affiliation.
ANSWER: T
NAT: AACSB Analytic

PAGE:

593
AICPA Legal

TYPE:

32
28.

UNIT THREE: BUSINESS AND EMPLOYMENT

Federal labor law protects employees right to strike.


ANSWER: T
NAT: AACSB Analytic

29.

593
AICPA Legal

Requiring union membership as a condition


employment is illegal in twenty-three states.
ANSWER: T
NAT: AACSB Analytic

30.

PAGE:

PAGE:

594
AICPA Legal

TYPE:
of
TYPE:

N
continued
N

The law guarantees union members higher wages than nonunion


workers.
ANSWER: F
NAT: AACSB Analytic

PAGE:

594
AICPA Legal

TYPE:

33

CHAPTER 17: EMPLOYMENT, IMMIGRATION, AND LABOR LAW

31.

Unions must report on their activities to their members.


ANSWER: T
NAT: AACSB Analytic

32.

PAGE:

595
AICPA Legal

TYPE:

PAGE:

597
AICPA Legal

TYPE:

An employer may not hire permanent substitute workers to replace


strikers.
ANSWER: F
NAT: AACSB Analytic

35.

TYPE:

A strike occurs when unionized workers leave their jobs and refuse to
work.
ANSWER: T
NAT: AACSB Analytic

34.

594
AICPA Legal

A union obtains authorization cards from a majority of workers to


justify an election among the workers for unionization.
ANSWER: T
NAT: AACSB Analytic

33.

PAGE:

PAGE:

598
AICPA Legal

TYPE:

An employer may hire temporary substitute workers to replace


strikers.
ANSWER: T
NAT: AACSB Analytic

PAGE:

598
AICPA Legal

TYPE:

MULTIPLE CHOICE QUESTIONS


1.

Myron is an employee of Nero. Either party can terminate the


employment relationship at any time for any reason without liability.
With respect to the employment-at-will doctrine, this is
a.
b.
c.
d.

an
an
an
an

example of the doctrine.


exception based on contract theory.
exception based on public policy.
exception based on tort theory.

ANSWER: A
PAGE:
567
NAT: AACSB Reflective AICPA Legal

TYPE:

34

UNIT THREE: BUSINESS AND EMPLOYMENT

35

CHAPTER 17: EMPLOYMENT, IMMIGRATION, AND LABOR LAW

2.

Thalia is an employee of Universal Insurance Company. Universals


employee manual states that workers will be dismissed only for good
cause. With respect to the employment-at-will doctrine, this is
a.
b.
c.
d.

an
an
an
an

example of the doctrine.


exception based on contract theory.
exception based on public policy.
exception based on tort theory.

ANSWER: B
PAGE:
567
NAT: AACSB Reflective AICPA Legal
3.

Fresh Foods liability for damages.


Gregors deportation under the Immigration Act.
discontinuance of Gregors health-plan coverage.
monitoring Fresh Foods communications for privacy violations.

ANSWER: A
PAGE:
567
NAT: AACSB Reflective AICPA Legal

TYPE:

Nita works as an employee for Optimal Sales Corporation. To protect


Nita and other employees from arbitrary discharge, courts have
created exceptions to the employment-at-will doctrine based on
a.
b.
c.
d.

an implied agency theory.


a public policy theory.
a standard operating agreement theory.
a fair and balanced theory.

ANSWER: B
PAGE:
568
NAT: AACSB Reflective AICPA Legal
5.

Fresh Food Packaging Company employs workers, including Gregor,


at six locations in two states. Fresh Foods discharge of Gregor
outside the terms of an employment contract may result in
a.
b.
c.
d.

4.

TYPE:

TYPE:

Lena offers Miguel a job, representing falsely that it will be long


term. In reliance, Miguel takes the job but is laid off shortly
thereafter and successfully sues Lena for fraud. With respect to the
employment-at-will doctrine, this is
a.
b.

an example of the doctrine.


an exception based on contract theory.

36

UNIT THREE: BUSINESS AND EMPLOYMENT

c.
d.

an exception based on public policy.


an exception based on tort theory.

ANSWER: D
PAGE:
568
NAT: AACSB Reflective AICPA Legal

TYPE:

37

CHAPTER 17: EMPLOYMENT, IMMIGRATION, AND LABOR LAW

6.

Lyra is an employee of Micro Brewing Company. Micro fires Lyra on


the basis of her gender, which violates a clear expression in a
statute that does not cover Micro only because Micro has too few
employees. Lyra successfully sues Micro for wrongful discharge on
this basis, however. With respect to the employment-at-will doctrine,
this is
a.
b.
c.
d.

an
an
an
an

example of the doctrine.


exception based on contract theory.
exception based on public policy.
exception based on tort theory.

ANSWER: C
PAGE:
568
NAT: AACSB Reflective AICPA Legal
7.

an
an
an
an

example of the doctrine.


exception based on contract theory.
exception based on public policy.
exception based on tort theory.

ANSWER: C
PAGE:
568
NAT: AACSB Reflective AICPA Legal

TYPE:

Uri is an employee of Verity Security Services. For Uri to obtain the


benefits of federal wage-hour requirements, Verity must be engaged
in
a.
b.
c.
d.

business activity.
employment at will.
international commerce.
interstate commerce.

ANSWER: D
PAGE:
569
NAT: AACSB Reflective AICPA Legal
9.

Flem is an employee of Glo Goods, Inc. Flem reports to state officials


that Glo is illegally shipping unsafe goods to unsuspecting
customers. When Glo learns of Flems report, Glo fires him. He
successfully sues Glo for wrongful discharge. With respect to the
employment-at-will doctrine, this is
a.
b.
c.
d.

8.

TYPE:

TYPE:

Bunky is seventeen years old. Under the Fair Labor Standards Act,
Bunky cannot work

38

UNIT THREE: BUSINESS AND EMPLOYMENT

a.
b.
c.
d.

during school hours.


in a hazardous occupation.
more than eighteen hours per week.
without a special permit.

ANSWER: B
PAGE:
569
NAT: AACSB Reflective AICPA Legal

TYPE:

39

CHAPTER 17: EMPLOYMENT, IMMIGRATION, AND LABOR LAW

10.

Cash is an employee of Drowsy Resort, Inc., covered by federal


overtime provisions, which apply only after an employee has worked
more than
a.
b.
c.
d.

eight hours in a day.


forty hours in a week.
160 hours in a month.
one year for the same employer.

ANSWER: B
PAGE:
570
NAT: AACSB Reflective AICPA Legal
11.

lodging and meals.


lodging only.
meals only.
neither lodging nor meals.

ANSWER: A
PAGE:
570
NAT: AACSB Reflective AICPA Legal

TYPE:

Eduardo is an employee of Free-Flo Plumbing Corporation. With


respect to the workplace, under federal health and safety statutes,
Free-Flo has
a.
b.
c.
d.

a general duty to keep it safe and to meet specific standards.


no general duty to keep it safe but must meet specific
standards.
no general duty to keep it safe or to meet specific standards.
only a general duty to keep it safe.

ANSWER: A
PAGE:
573
NAT: AACSB Reflective AICPA Legal
13.

Super Sales Corporation provides Tyrone and other salespersons with


meals and lodging when they are on the road. Under federal law, the
term wages may include, besides pay, the reasonable cost to
Standard of furnishing Tyrone with
a.
b.
c.
d.

12.

TYPE:

TYPE:

Hoppy, who works as an employee for Imperial Power Corporation,


suffers an injury in an accident. Hoppy may be compensated under
state workers compensation laws
a.

only if the injury occurred during working hours.

40

UNIT THREE: BUSINESS AND EMPLOYMENT

b.
c.
d.

only if the injury occurred off the job.


only if the injury occurred on the job.
whenever and wherever the injury occurred.

ANSWER: C
PAGE:
575
NAT: AACSB Reflective AICPA Legal
14.

eleven or more employees.


twenty-one or more employees.
thirty-one or more employees.
fifty-one or more employees.

ANSWER: A
PAGE:
575
NAT: AACSB Reflective AICPA Legal

TYPE:

Recycled & Disposed Waste, Inc. (R&D), lays off fifty of its five
hundred workers, including Sven. R&D can eliminate Svens medical
insurance coverage
a.
b.
c.
d.

if R&D changes its group insurer.


if R&D completely eliminates its group benefit plan.
if Sven files a suit against R&D for wrongful discharge.
under any circumstances.

ANSWER: B
PAGE:
577
NAT: AACSB Reflective AICPA Legal
16.

Heavy Hydraulics Corporation has a staff of ten, which will increase


to fifty if it obtains a certain contract. Employers are required to keep
occupational injury and illness records for each employee if the
employers have
a.
b.
c.
d.

15.

TYPE:

TYPE:

Machine Operations, Inc. (MO) employs four hundred workers at


three locations in three states. Workers who do not have a right to
continue group health benefits provided by MO for a limited time
after the loss of their jobs include those who
a.
b.
c.
d.

are fired for gross misconduct.


are laid off for budgetary reasons.
have their hours decreased from full-time to part-time.
quit their jobs voluntarily.

ANSWER:

PAGE:

577

TYPE:

CHAPTER 17: EMPLOYMENT, IMMIGRATION, AND LABOR LAW

NAT: AACSB Reflective AICPA Legal

41

42
17.

UNIT THREE: BUSINESS AND EMPLOYMENT

Holly takes temporary leave from her job at Interstate Trucking


Company to care for her new baby. When she attempts to return to
work, Interstate refuses to reinstate her. Under the Family and
Medical Leave Act, Holly may be entitled to
a.
b.
c.
d.

damages only.
damages or job reinstatement only.
double damages, job reinstatement, a promotion, and more.
nothing.

ANSWER: C
PAGE:
581
NAT: AACSB Reflective AICPA Legal
18.

drug tests.
electronic monitoring of business communications.
genetic tests.
lie-detector tests.

ANSWER: D
PAGE:
583
NAT: AACSB Reflective AICPA Legal

TYPE:

Lee works as an employee for Maximum Industries, Inc., a private


employer. Maximum announces that it will start random drug testing
of its employees. If Lee resists this policy, he may look for protection
under
a.
b.
c.
d.

a federal administrative agency rule.


a state constitution or statute.
the U.S. Constitution.
all of the choices.

ANSWER: B
PAGE:
584
NAT: AACSB Reflective AICPA Legal
20.

Tedium Accounting Corporation, a private employer, handles


bookkeeping for small employers. In most circumstances, with
exceptions, federal law clearly prohibits Tedium from subjecting its
employees to
a.
b.
c.
d.

19.

TYPE:

TYPE:

Fruits & Vegetables, Inc., employs hundreds of seasonal and


permanent workers, both skilled and unskilled, in seven states. Fruits
& Vegetables can hire illegal immigrants
a.

if either the employer or the immigrants file special forms.

43

CHAPTER 17: EMPLOYMENT, IMMIGRATION, AND LABOR LAW

b.
c.
d.

only if the employer files a special form.


only if the immigrants file special forms.
under no circumstances.

ANSWER: D
PAGE:
585
NAT: AACSB Reflective AICPA Legal

TYPE:

44
21.

UNIT THREE: BUSINESS AND EMPLOYMENT

Southwestern Foods Corporation operates a packaging plant near the


border between the United States and Mexico. Due to the location, it would
be easier for Southwestern to employ noncitizens. It is legal for a U.S.
employer to
a.
b.
c.
d.

hire persons not authorized to work in the United States.


recruit persons not authorized to work in the United States.
refer for a fee persons not authorized to work in the United States.
none of the choices.

ANSWER: D
PAGE:
585
NAT: AACSB Reflective AICPA Legal
22.

excluding contractors and day workers.


excluding contractors but including day workers.
excluding day workers but including contractors.
including contractors and day workers.

ANSWER: D
PAGE:
586
NAT: AACSB Reflective AICPA Legal

TYPE:

Hu, Ivan, and Juana apply to work for King Meatpacking Company. These
individuals identities and eligibility to work must be verified by
a.
b.
c.
d.

the
the
the
the

employer.
individuals.
individuals countries of origin.
U.S. Citizenship and Immigration Services.

ANSWER: A
PAGE:
586
NAT: AACSB Reflective AICPA Legal
24.

Mineral Mining Corporation is a U.S. employer. Mineral, and other U.S.


employers, must perform I-9 verifications for new hires who work under
the employers direct supervision
a.
b.
c.
d.

23.

TYPE:

TYPE:

Unity Production Company is suspected of employing illegal immigrants.


The government conducts random compliance audits and other
enforcement measures against those who might violate immigration laws
through
a.
b.

CIS.
H1-B.

45

CHAPTER 17: EMPLOYMENT, IMMIGRATION, AND LABOR LAW

c.
d.

ICE.
RICO.

ANSWER: C
PAGE:
586
NAT: AACSB Reflective AICPA Legal
25.

no current law.
the Immigration Act of 1990.
the Immigration Reform and Control Act of 1986.
the McCarran-Walter Act of 1952.

ANSWER: A
PAGE:
587
NAT: AACSB Reflective AICPA Legal

a subpoena and a warrant.


a subpoena or a warrant, but not both.
not a subpoena, a warrant, or the employers consent.
the employers consent.

ANSWER: C
PAGE:
587
NAT: AACSB Reflective AICPA Legal

TYPE:

Socrates Software Corporation wants to hire Tomas, a noncitizen. To hire


Tomas, Socrates must petition
a.
b.
c.
d.

CIS.
H1-B.
ICE.
RICO.

ANSWER: A
PAGE:
590
NAT: AACSB Reflective AICPA Legal
28.

TYPE:

Seafood Canning Corporation keeps a file of I-9 verifications forms. To


inspect this file, the appropriate government officer must obtain
a.
b.
c.
d.

27.

Sol believes that he has suffered as a result of Tom Turkey Processing,


Inc.s hiring of illegal immigrants. Sol has a direct cause of action against
Tom Turkey under
a.
b.
c.
d.

26.

TYPE:

TYPE:

General Auto Corporation, a U.S. employer, may hire Hilo, a noncitizen, if


Hilo is

46

UNIT THREE: BUSINESS AND EMPLOYMENT

a.
b.
c.
d.

a lawful permanent resident of the United States.


an unlawful but hopefully permanent resident in the United States.
an unlawful but only temporary resident in the United States.
any of the choices.

ANSWER: A
PAGE:
591
NAT: AACSB Reflective AICPA Legal
29.

a
a
a
a

person
person
person
person

of ethnic similarity to the employers workforce.


of extraordinary ability.
of ordinary ability and ambition.
with an extraordinary work ethic.

ANSWER: B
PAGE:
592
NAT: AACSB Reflective AICPA Legal

TYPE:

Gus is an employee of Harden Steel Company. Under federal labor


law, Gus and other employees have the right to
a.
b.
c.
d.

bargain collectively with Harden through their representatives.


insist that Harden require union membership as a condition of
work.
interfere with the efforts of others to form labor organizations.
refuse to bargain with Harden through their representatives.

ANSWER: A
PAGE:
593
NAT: AACSB Reflective AICPA Legal
31.

Detailed Designs Company, an architectural firm, wants to hire Eduardo, a


noncitizen. A temporary work visa is most likely to be set aside for a
noncitizen who is
a.
b.
c.
d.

30.

TYPE:

TYPE:

Harde Work, Inc., employs 2,000 workers, of whom half are members
of Industrial Employees Union (IEU). LaZee Daze Company employs
1,000 workers, of whom none are union members. A hot-cargo
agreement would be an agreement between Harde and
a.
b.
c.
d.

Hardes employees if the agreement covers


dangerous substances.
IEU to boycott non-union products.
LaZee Daze to boycott a product.
LaZee Daze to refuse to hire IEU employees.

ANSWER:

PAGE:

594

TYPE:

handling

47

CHAPTER 17: EMPLOYMENT, IMMIGRATION, AND LABOR LAW

NAT: AACSB Reflective AICPA Legal


32.

Employees at Energy Resource Industries, Inc., want to form into a


single union. To constitute an appropriate bargaining unit, a group of
workers must have
a.
b.
c.
d.

a mutuality of interest.
at least one member of management willing to join the union.
a variety of job skills and qualifications.
geographical disparity.

ANSWER: A
PAGE:
595
NAT: AACSB Reflective AICPA Legal

TYPE:

48
33.

UNIT THREE: BUSINESS AND EMPLOYMENT

BioGene Corporation learns that several employees are attempting


to persuade other employees to support a union as their
representative. BioGene may
a.
b.
c.
d.

discharge the unionizers after a union election.


discharge the unionizers before a union election.
discipline employees who accept pamphlets from, or listen to,
the unionizers.
limit union solicitation on BioGenes premises.

ANSWER: D
PAGE:
595
NAT: AACSB Reflective AICPA Legal
34.

Restaurant Employees Union is engaged in collective bargaining with


Seaside Seafood Dining, Inc. The employer would show bad faith by
a.
b.
c.
d.

compromising on particular issues.


constantly shifting positions on disputed contract terms.
not discussing union positions with employees.
sending only bargainers who have authority to commit to a
contract.

ANSWER: B
PAGE:
596
NAT: AACSB Reflective AICPA Legal
35.

TYPE:

TYPE:

Boz, a clerk for a Cheezy Burger, Inc., restaurant goes out on strike
with the other employees. After the strike, Boz must be given his job
back if there is still work at the restaurant and the strike was
a.
b.
c.
d.

a lawful economic strike.


an excuse for a few days off.
an unustified strike.
an unlawful practice strike.

ANSWER: A
PAGE:
598
NAT: AACSB Reflective AICPA Legal

TYPE:

ESSAY QUESTIONS
1.

Borealis Power Company is subject to mandatory workers


compensation laws in the states in which it does business. Chad and
Dex work for Borealis as part of a crew that travels to remote

CHAPTER 17: EMPLOYMENT, IMMIGRATION, AND LABOR LAW

49

locations to repair downed power lines and other damaged


equipment. At a distant site, Chad is injured in an accident that is
entirely Dexs fault. Chad files a claim for workers compensation.
Should the claim be granted? What would be Borealiss best defense
against it?
ANSWER: Chads claim should probably be granted. Borealiss best
defense in this situation, as in all workers compensation cases, is
that Chads injury did not arise out of and in the course of
employment. That defense would not likely be successful here,
however. Under workers compensation laws, employers are strictly
liable without regard to whether or not they are at fault. Even if the
employer is not negligent, he or she is liable if an employees injury
arose out of and in the course of employment. Liability in this
context means that an injured employee is entitled to workers
compensation benefits for his or her injury. An injury must be workrelated, arising out of activity that is normal for the kind of job
involved. In the course of employment means that the employee
was either at work or performing work at a different location. That a
co-worker caused an injury to an employee does not block the employees recovery of workers compensation benefits. Also, although
an employee is not covered while driving to work from home, the
employee is covered while performing a work-related service at an
off-site location.
PAGES:
574575
TYPE: N
NAT: AACSB Reflective AICPA Decision Modeling
2.

Healthy Harvest Company runs a candy and fruit processing and


packaging plant. Most of Healthy Harvests business is done during
holiday seasons, especially between Halloween and New Years Day,
and in the spring. The company hires a large temporary workforce
during its busiest times. Occasionally, a position opens for an
individual with highly specialized skills, particularly to operate and
maintain the companys inventory and sales control systems. Can
Healthy Harvest hire noncitizens for its temporary, seasonal work?
Can the company hire a noncitizen with special skills for certain jobs?
If so, what procedures must the employer follow in both situations to
do this hiring? If not, how can Healthy Harvest be assured that it is
hiring only citizens?
ANSWER:
It is illegal to hire for work in the United States a
person who is not authorized to work here. Thus, under no

50

UNIT THREE: BUSINESS AND EMPLOYMENT

circumstances can an employer legally hire a noncitizen who is in the


United States unlawfully. But an employer may hire a noncitizen who
is a lawful permanent resident. The principal responsibility to verify
an individuals identity and eligibility to work rests with the
employer. The U.S. Citizenship and Immigration Services (CIS)
supplies a formForm I-9, Employment Eligibility Verificationthat
an employer must complete within three days of hiring an employee
(and retain for three years). An employer has some defenses against
alleged violations but is otherwise subject to penalties for illegally
employing noncitizens. Lawful permanent residency can be proved
by an I-531 Alien Registration Receipt, or green card. Subject to
certain strict requirements, an employer may apply for a green
card for a noncitizen. Persons who immigrate to the United States
to work include those with special skills, such as an individual who
might qualify to fill the job with Healthy Harvest in this question. To
hire such an individual who is not otherwise authorized to work here,
an employer must petition the CIS. The employer can obtain a visa
for a person to work in the United States in a highly qualified,
specialty occupation as part of the H-1B visa program.
PAGES:
585592
TYPE: N
NAT: AACSB Reflective AICPA Decision Modeling