42 U.S.C. § 653a : US Code - Section 653A: State Directory of New Hires

Search 42 U.S.C. § 653a : US Code - Section 653A: State Directory of New Hires

(a) Establishment
(1) In general
(A) Requirement for States that have no directory
Except as provided in subparagraph (B), not later than
October 1, 1997, each State shall establish an automated
directory (to be known as the "State Directory of New Hires")
which shall contain information supplied in accordance with
subsection (b) of this section by employers on each newly hired
employee.
(B) States with new hire reporting law in existence
A State which has a new hire reporting law in existence on
August 22, 1996, may continue to operate under the State law,
but the State must meet the requirements of subsection (g)(2)
of this section not later than October 1, 1997, and the
requirements of this section (other than subsection (g)(2) of
this section) not later than October 1, 1998.
(2) Definitions
As used in this section:
(A) Employee
The term "employee" - 
(i) means an individual who is an employee within the
meaning of chapter 24 of the Internal Revenue Code of 1986;
and
(ii) does not include an employee of a Federal or State
agency performing intelligence or counterintelligence
functions, if the head of such agency has determined that
reporting pursuant to paragraph (1) with respect to the
employee could endanger the safety of the employee or
compromise an ongoing investigation or intelligence mission.
(B) Employer
(i) In general
The term "employer" has the meaning given such term in
section 3401(d) of the Internal Revenue Code of 1986 and
includes any governmental entity and any labor organization.
(ii) Labor organization
The term "labor organization" shall have the meaning given
such term in section 152(5) of title 29, and includes any
entity (also known as a "hiring hall") which is used by the
organization and an employer to carry out requirements
described in section 158(f)(3) of title 29 of an agreement
between the organization and the employer.
(b) Employer information
(1) Reporting requirement
(A) In general
Except as provided in subparagraphs (B) and (C), each
employer shall furnish to the Directory of New Hires of the
State in which a newly hired employee works, a report that
contains the name, address, and social security number of the
employee, and the name and address of, and identifying number
assigned under section 6109 of the Internal Revenue Code of
1986 to, the employer.
(B) Multistate employers
An employer that has employees who are employed in 2 or more
States and that transmits reports magnetically or
electronically may comply with subparagraph (A) by designating
1 State in which such employer has employees to which the
employer will transmit the report described in subparagraph
(A), and transmitting such report to such State. Any employer
that transmits reports pursuant to this subparagraph shall
notify the Secretary in writing as to which State such employer
designates for the purpose of sending reports.
(C) Federal Government employers
Any department, agency, or instrumentality of the United
States shall comply with subparagraph (A) by transmitting the
report described in subparagraph (A) to the National Directory
of New Hires established pursuant to section 653 of this title.
(2) Timing of report
Each State may provide the time within which the report
required by paragraph (1) shall be made with respect to an
employee, but such report shall be made - 
(A) not later than 20 days after the date the employer hires
the employee; or
(B) in the case of an employer transmitting reports
magnetically or electronically, by 2 monthly transmissions (if
necessary) not less than 12 days nor more than 16 days apart.
(c) Reporting format and method
Each report required by subsection (b) of this section shall be
made on a W-4 form or, at the option of the employer, an equivalent
form, and may be transmitted by 1st class mail, magnetically, or
electronically.
(d) Civil money penalties on noncomplying employers
The State shall have the option to set a State civil money
penalty which shall not exceed - 
(1) $25 per failure to meet the requirements of this section
with respect to a newly hired employee; or
(2) $500 if, under State law, the failure is the result of a
conspiracy between the employer and the employee to not supply
the required report or to supply a false or incomplete report.
(e) Entry of employer information
Information shall be entered into the data base maintained by the
State Directory of New Hires within 5 business days of receipt from
an employer pursuant to subsection (b) of this section.
(f) Information comparisons
(1) In general
Not later than May 1, 1998, an agency designated by the State
shall, directly or by contract, conduct automated comparisons of
the social security numbers reported by employers pursuant to
subsection (b) of this section and the social security numbers
appearing in the records of the State case registry for cases
being enforced under the State plan.
(2) Notice of match
When an information comparison conducted under paragraph (1)
reveals a match with respect to the social security number of an
individual required to provide support under a support order, the
State Directory of New Hires shall provide the agency
administering the State plan approved under this part of the
appropriate State with the name, address, and social security
number of the employee to whom the social security number is
assigned, and the name and address of, and identifying number
assigned under section 6109 of the Internal Revenue Code of 1986
to, the employer.
(g) Transmission of information
(1) Transmission of wage withholding notices to employers
Within 2 business days after the date information regarding a
newly hired employee is entered into the State Directory of New
Hires, the State agency enforcing the employee's child support
obligation shall transmit a notice to the employer of the
employee directing the employer to withhold from the income of
the employee an amount equal to the monthly (or other periodic)
child support obligation (including any past due support
obligation) of the employee, unless the employee's income is not
subject to withholding pursuant to section 666(b)(3) of this
title.
(2) Transmissions to the National Directory of New Hires
(A) New hire information
Within 3 business days after the date information regarding a
newly hired employee is entered into the State Directory of New
Hires, the State Directory of New Hires shall furnish the
information to the National Directory of New Hires.
(B) Wage and unemployment compensation information
The State Directory of New Hires shall, on a quarterly basis,
furnish to the National Directory of New Hires information
concerning the wages and unemployment compensation paid to
individuals, by such dates, in such format, and containing such
information as the Secretary of Health and Human Services shall
specify in regulations.
(3) "Business day" defined
As used in this subsection, the term "business day" means a day
on which State offices are open for regular business.
(h) Other uses of new hire information
(1) Location of child support obligors
The agency administering the State plan approved under this
part shall use information received pursuant to subsection (f)(2)
of this section to locate individuals for purposes of
establishing paternity and establishing, modifying, and enforcing
child support obligations, and may disclose such information to
any agent of the agency that is under contract with the agency to
carry out such purposes.
(2) Verification of eligibility for certain programs
A State agency responsible for administering a program
specified in section 1320b-7(b) of this title shall have access
to information reported by employers pursuant to subsection (b)
of this section for purposes of verifying eligibility for the
program.
(3) Administration of employment security and workers'
compensation
State agencies operating employment security and workers'
compensation programs shall have access to information reported
by employers pursuant to subsection (b) of this section for the
purposes of administering such programs.