10.4 Immigration and Work Authorization Employers must verify work eligibility by completing Form I-9 for all employees. International companies setting up a U.S. presence should ensure compliance with work authorization rules to avoid penalties and potential visa issues. (i) Hiring foreign workers requires proper visa sponsorship, such as H-1B, L-1, or TN visas (discussed in the Immigration Options chapter). (ii) The E-Verify system is a federal tool that some states require for employment eligibility verification. 10.5 Termination, Severance, and Unemployment Insurance Foreign companies new to U.S. labor laws should familiarize themselves with termination procedures to prevent wrongful termination claims and ensure smooth workforce transitions. (i) Severance pay refers to compensation provided to employees upon termination, often based on length of service or company policy. While severance pay is not mandatory under federal law, employers must comply with state requirements and employment contracts that specify severance obligations. (ii) Employers must provide terminated employees with information about continuing health coverage (COBRA) and unemployment benefits. (iii) S tate unemployment insurance (UI) laws govern employer contributions and benefits for displaced workers. (iv) Wrongful termination claims occur when an employee alleges, they were fired in violation of anti-discrimination laws, employment contracts, or public policy. To mitigate risks, employers should:
(a) Maintain clear documentation of performance issues and termination reasons.
(b) Ensure compliance with state and federal termination laws.
(c) Provide proper notice and severance (if applicable).
(d) Avoid terminating employees in a manner that could be perceived as discriminatory or retaliatory.
10.6 Key Resources for Employers To ensure compliance with U.S. labor laws, international employers should refer to the following agencies and resources:
10.6.1 U.S. Department of Labor (DOL) www.dol.gov
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