U.S Code last checked for updates: Jun 18, 2024
§ 653a.
State Directory of New Hires
(a)
Establishment
(1)
In general
(A)
Requirement for States that have no directory
(B)
States with new hire reporting law in existence
(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
(ii)
Labor organization
(C)
Newly hired employee
The term “newly hired employee” means an employee who—
(i)
has not previously been employed by the employer; or
(ii)
was previously employed by the employer but has been separated from such prior employment for at least 60 consecutive days.
(b)
Employer information
(1)
Reporting requirement
(A)
In general
(B)
Multistate employers
(C)
Federal Government employers
(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
(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
(f)
Information comparisons
(1)
In general
(2)
Notice of match
(g)
Transmission of information
(1)
Transmission of wage withholding notices to employers
(2)
Transmissions to the National Directory of New Hires
(A)
New hire information
(B)
Wage and unemployment compensation information
(3)
“Business day” defined
(h)
Other uses of new hire information
(1)
Location of child support obligors
(2)
Verification of eligibility for certain programs
(3)
Administration of employment security and workers’ compensation
(4)
Veteran employment
(Aug. 14, 1935, ch. 531, title IV, § 453A, as added Pub. L. 104–193, title III, § 313(b), Aug. 22, 1996, 110 Stat. 2209; amended Pub. L. 105–33, title V, § 5533, Aug. 5, 1997, 111 Stat. 627; Pub. L. 111–291, title VIII, § 802(a), (b), Dec. 8, 2010, 124 Stat. 3157; Pub. L. 112–40, title II, § 253(a), Oct. 21, 2011, 125 Stat. 422; Pub. L. 116–315, title IV, § 4301, Jan. 5, 2021, 134 Stat. 5016.)
cite as: 42 USC 653a