Correct!

Either A or C, except in California, where the only option is C. Employers in states other than California who have a strict policy prohibiting dishonesty may be able to terminate the employment of such an individual based on the previous presentation of fraudulent documentation and/or information. In California, however, a state law prohibits an employer from taking adverse action in this situation. For California employers, and for those who do not terminate based on dishonesty, a new I-9 should be completed. Employers who use E-Verify should run an E-Verify query based on the new I-9.

The Challenge Question:

When an employee comes forward with a new Social Security number and indicates that he was previously not authorized to work but has since obtained valid work authorization, what should an employer do?

a. Terminate employment (or take other adverse action) based on prior dishonesty;

b. Terminate employment based on the lack of work authorization;

c. Complete a new I-9, allow the employee to continue to work, and, if the employer uses E-Verify, run an E-Verify query; or

d. Complete a new I-9 and allow the employee to continue to work, but not run an E-Verify query (because you cannot run an E-Verify query for an existing employee).