Contractor License Practice Exam

Are employers required to report a new employee or rehired employee to the State Directory of New Hires?

1. True

2. False

3. Only for full-time employees

4. Only for part-time employees

The correct answer is: True

Employers are indeed required to report a new employee or a rehired employee to the State Directory of New Hires. This requirement is part of federal law, specifically the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, which mandates that all states maintain a directory of new hires. The purpose of this law is primarily to assist in the enforcement of child support obligations and to help detect and prevent welfare and unemployment fraud. When an employer hires an employee, they must provide certain information, such as the employee’s name, address, and Social Security number, as well as the employer’s identifying information. This reporting must typically be done within a specific timeframe after the date of hire, which can vary by state. The distinction between new and rehired employees is important because both categories are included in this reporting requirement. Thus, the obligation extends to all employees, regardless of their full-time or part-time status, reinforcing the critical nature of this compliance in supporting state and federal initiatives.