In recognition of an increasingly electronic business world, the Department of Homeland Security ("DHS") has proposed an Interim Rule to allow employers to complete and retain their Employment Eligibility Verification Forms ("Forms I-9") electronically rather than in paper form. This Interim Rule, which went into effect on June 15, 2006, seeks to provide employers with greater flexibility in the completion, storage and retention of Forms I-9 required under the federal Immigration and Nationality Act. The Rule is expected to provide employers with significant cost savings.

The Interim Rule proposes guidelines for electronically scanning and storing existing Forms I-9, as well as for completing, signing and storing new Forms I-9 electronically. DHS has also set forth standards to offer employers flexibility in their choice of electronic storage methods and to help maintain the integrity of the electronically stored documents. Among other things, the standards require employers to ensure that reproduced documents exhibit a high degree of legibility and readability; that electronic storage systems are not subject to an agreement that would restrict the Government's access to the documents; and that instructions on how to use the electronic storage system are regularly maintained and updated.

It is important to note that this Interim Rule does not require employers who are currently complying with the existing recordkeeping and retention requirements set forth in the DHS guidelines to take any additional or different action; rather the Rule provides employers with additional options for complying with the requirements. As noted above, the Interim Rule authorizes employers to store Forms I-9 electronically as of June 15, 2006.

Interested persons may comment on the Interim Rule by submitting written data, views or arguments on or before August 14, 2006. Written comments should be directed to: Jim Knapp, Associate Legal Advisor, Bureau of Immigration and Customs Enforcement, Room 6100, 425 Eye Street, N.W., Washington, D.C. 20536.