February 24, 2010

Labor Law Issue: Payroll Name Change Should Await New Social Security Card

One of my employees just got married and has taken her husband’s last name. Do I need to see her marriage license or new Social Security card to verify the name change? Do I need to update her I-9 Employment Eligibility Verification form? What about payroll records?

Employees commonly change their names when they get married, divorced or enter into a domestic partnership. Sometimes an employee will decide to change his/her name for other reasons, which is legal to do in most cases.

In California, a man or woman may legally adopt his or her new spouse’s last name without having to go through the court system. While it’s more common for a woman to take her husband’s last name, a man may take his wife’s last name as well without court approval. If the couple both choose to take an entirely new last name together, then a court procedure is required.

An employee who enters a domestic partnership may legally change his/her name when registering the domestic partnership with the California Secretary of State.

I-9 Employment Form
Do not update an employee’s I-9 Employment Eligibility Verification form based solely on a change of name.

Section 3 of the I-9 (for “Updating and Reverification”) is completed only when:
• reverifying employment eligibility at the time an employment authorization document is expiring; or
• an employee is rehired within three years of when the form was originally completed.

You may want to attach a memo to the I-9 noting the employee’s new name to avoid confusion in case of an audit.

Social Security Administration
Your employee must notify the Social Security Administration (SSA) of a name change to ensure her earnings are properly recorded. According to the SSA, if an employee has not notified the SSA of the name change, then an employer should continue to use the old name for payroll and tell the employee to contact the SSA to obtain an updated card. Using a new name before your employee updates SSA records may prevent the posting of earnings. Change your payroll records only when the employee obtains an updated Social Security card with the new name.

If an employee requests that you use a new name on other (non-payroll) employment documents, you may require documentation of the name change. Acceptable documentation could include a marriage certificate, domestic partnership certificate, divorce decree, court decree changing name, driver license or Social Security card reflecting the new name.

The Labor Law Helpline is a service to California Chamber of Commerce preferred and executive members. For expert explanations of labor laws and Cal/OSHA regulations, not legal counsel for specific situations, call (800) 348-2262 or submit your question at www.hrcalifornia.com.

Where Can You Get More Information? Check out the Compliance Section of the Chamber Store. The Chamber is where you can get the HR Handbook for California and the California Labor Digest at the LOWEST price! Napa Chamber members are able to receive all of their required products at greatly reduced rates. Contact Lynn Page at (707) 254-1145 or click here to visit our online Chamber Store.

Reprinted with permission from the California Chamber of Commerce.

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