Form I-9 Fines for Abercrombie & Fitch Top 1 Million

In a press release issued this week, Immigration and Customs Enforcement (ICE) announced it reached a $1,047,110 fine settlement agreement with Abercrombie & Fitch for numerous deficiencies in the company’s electronic Form I-9 system. The settlement was reached as a result of an ICE audit in November 2008 of Abercrombie & Fitch’s retail stores in Michigan.

The Form I-9 audit found problems with the company’s electronic I-9 system, causing ICE to question the integrity and validity of the company’s I-9 forms. ICE reported that the investigation found no evidence the company knowingly hired any undocumented workers yet the negotiated fine settlement totaled over $1,000,000!

Form I-9 Compliance – Know Your Responsibility

Every employer should take note that an ICE investigation is not necessarily about finding undocumented workers…it is about checking the employer’s compliance with the law.  Failure to follow the proper I-9 process will result in large fines – just ask Abercrombie & Fitch.

As in the case of Abercrombie & Fitch, many employers are choosing to use an “in-house” solution or some I-9 application that comes in a “bundle” with various HR on-boarding software systems.  Many of these systems lack important security and audit functionality.  It is important to realize ICE will hold employers accountable for the requirements for record keeping and technical safeguards as laid out in the 2006 interim final regulations, so choosing the right electronic solution can mean the difference between compliance and large penalties.

Although an employer’s intent may be to comply with Form I-9 requirements, the burden is clearly on the employer to insure whatever system is used produces I-9s that are secure, accurate, complete, and accessible in the event of an ICE inspection. If the electronic completion product does not meet the standard as set forth in the Interim Rule, ICE can invalidate the Form I-9’s and fine the employer as though the forms were never completed.

What to look for when shopping for an electronic Form I-9 solution

1.  A system that completes all field as though it were a paper form

• All Section 1 fields
• Employee Attestation
• Employee Electronic Signature
• All Section 2 fields
• All document information including Title, Issuing Auth, Doc #, and Expiration Date
• Employer Attestation including hire date
• Employer Electronic Signature

2.  Choose the right vendor – ask the right questions

• Does the vendor have experienced immigration attorneys on staff to assist in design and updates to the system?
• What guarantee does the vendor contract provide?
• Can the vendor provide client references that will attest to the vendor’s ability to support the product, release accurate timely updates, and keep data secure?

While electronic I-9 systems have many features and options, selecting the right solution demands careful planning and appropriate due diligence.  And as always, Buyer Beware! – price should not be the only consideration when selecting the appropriate vendor for your electronic Form I-9 completion and storage.

Can Government Make Form I-9 Compliance Any Harder?

As if the I-9 process wasn’t complex enough, recent changes are making it even more complicated for employers to remain compliant with the employment eligibility verification requirements of the United States.  From confusion concerning the “3-day rule” to invalid Puerto Rican birth certificates, to changes in E-Verify…how can an employer keep up?

At first glance, the Form I-9 seems pretty straight forward.  The employee fills in some information, then the employer fills in some information, everybody signs and dates and Viola!  It’s finished.

Well, hold on a minute – what if the employee is a minor under 16?  Are there special rules?  What if the employee has temporary protected status and her work authorization document is expired – what then?  What if the new hire lost his Social Security card, can I still hire him?  This U.S. Passport is expired.  Is it an acceptable List A document?  We fill out forms in Spanish for our Spanish speaking employees – so what?  Is a Union member card a List B or a List C document?  Does it matter?  What about a Carry Permit and a Library card?  HOW DID THIS GET SO HARD?

Why is the Form I-9 Such a Big Deal?

The bottom line is, it is every employer’s responsibility to verify both the identity and work eligibility of every person they hire by correctly completing a Form I-9. Many states as well as most Federal government contracts now require the use of E-Verify.

Immigration and Customs Enforcement (ICE) is actively investigating thousands of businesses across the country to examine their Form I-9 documents and procedures to insure they are fulfilling their responsibility to the law.  Unfortunately, more times than not, businesses are suffering significant civil penalties for non-compliance and in many cases are facing accusations of discriminatory hiring practices brought forth by the Department of Justice.

What if I Know My Employees are U.S. Citizens?

Employers need to be crystal clear that this aggressive enforcement is NOT about looking for illegal workers!  ICE investigations are focused on compliance with the requirements of the Form I-9.  An employer will be held responsible for mistakes on I-9 forms and fined between $110 -$1100 per mistake, even if they have never hired an undocumented worker.

The US Citizenship and Immigration Service IMAGE program has published a list of Best Practices for employers to help them learn to comply with the requirements of the law.  On the list of Best Practices is to order an independent 3^rd party audit of your company’s I-9s to identify and repair areas of non-compliance.  This is the best step a company can take to ensure they are 100% compliant with Form I-9 requirements.

The experts at I-9 Okay have audited thousands of Forms I-9 and have assisted many employers in developing best practices to protect their business from the enforcement tactics of ICE.  Don’t wait until ICE knocks on your door.  Call I-9 Okay today at 866-580-9390 to schedule a free 30 minute consultation to examine your company’s practices.