Dennis J. Merley

With the long process of rebuilding the coastal cities yet to begin, many of Katrina's evacuees may not return to their homes for quite some time, if ever. Those who have gone to live with family members in other states, or who accepted evacuation elsewhere may look to settle where they are, and that could be right here in Minnesota. What issues will Minnesota employers face when they consider hiring Katrina's victims who wish to rebuild their lives here?

Employment Verification

The Department of Homeland Security (DHS) has recognized that many evacuees are unlikely to be able to produce sufficient verification of their ability to work in the United States. DHS therefore has announced that they will not sanction employers who, within a 45 day period, hire the victims of Katrina who are unable to provide appropriate documentation. Nevertheless, employers must still try to complete the I-9 verification form as much as possible, and a note should be placed on the form that the remaining information is not available because of the hurricane. DHS has not yet stated whether this moratorium on sanctions will be extended after the initial 45-day period, which expires in late October.

Employee Benefits

Many of these new employees probably participated in medical insurance plans, 401(k)'s and other benefit programs. They may have difficulty proving their coverage under prior medical plans, or the lack of a pre-existing condition. They may need some help in getting the information necessary to roll over their 401(k)'s. You will want to consult your experts in dealing with these unusual but pressing issues.

Aid for New Employees

Many employers in Minnesota and around the country will find that once they hire evacuees, their existing work forces will want to help their new co-workers, and will ask that the employers do the same.

When faced with requests to set up or sponsor some sort of effort on behalf of the new employees, employers must be sure that they understand and accept the full effect of such generosity.

Donated vacation and sick leave days, employee loans and paycheck advances all may have tax consequences for both the donor and the donee. Be sure to advise everyone involved that they need to find out how they will be affected, and don't forget to explore and plan for the obligations such programs impose on the employer.

Work on employer-sponsored fund raisers or other relief activities during working time could raise issues relating to whether the hours count under wage & hour regulations, or whether workers compensation laws might apply if an employee is injured during these events.

Katrina victims may have difficulties adjusting to their new lives and new surroundings. Make sure that you publicize your employee assistance plan effectively, if you have one, or identify local resources available to stressed out employees. Consider organizing transportation assistance plans, mentoring relationships and other similar programs to help your new employees feel at home as quickly as possible. Such efforts may reduce the risk of violence, drug use or other dangerous behavior by new employees whose coping skills may already have been pushed to the limit.

A little planning and a dose of generosity can help a lot of people get a fresh start, and that will benefit Minnesota employers, too.

If you have any questions, contact Dennis J. Merley of our Minneapolis Office.