Form I-9 Violations Can Cost Your Business Big Bucks

Will I-9 Violations Cost Your Business?

i-9-violations During July of 2009, Immigration and Customs Enforcement (ICE) initiated an I-9 investigation of Alyn Industries as part of an I-9 document audit initiative that is holding employers accountable for hiring practices. Alyn Industries (dba Electronic Source Company) manufactures printed circuit board assemblies for companies in the aerospace, military, medical, wireless and telecommunication industries. As of December 2010, they had 50 employees.

When Alyn submitted their Forms I-9 in response to the Notice of Inspection, ICE noted several deficiencies including Alyn’s failure to present Forms I-9 for 2 employees, failure to complete Section 1 for 1 employee and failure to complete Section 2 for 59 employees. Based on the I-9 violations discovered during the audit, ICE issued a Notice of Intent to fine Alyn in the amount of $64,767.00.

When Alyn went to court they argued the fines were excessive because they are a small business, they had no previous violations and the company is a victim of poor economic conditions. Alyn is a privately owned company that operates one worksite in California. Alyn also argued that they acted in good faith because after the ICE inspections they had enrolled in E-Verify and had instituted other I-9 compliance procedures.

In response to Alyn’s arguments, the judge reminded them the issue of good faith is based on whether the employer reasonably attempted to comply with its I-9 obligations prior to an ICE inspection. The important component of good faith depends on when the employer made the effort to comply.

In the end the judge ruled and Alyn Industries was ordered to pay $43,000 in civil money penalties as a result of Form I-9 violations.

Protecting your company from this type of action is a matter of proactively addressing I-9 issues through training, third-party audits, and compliance policies before an ICE inspection. Once ICE issues a notice of inspection there is little you can do to mitigate the risk of fines.

Unfortunately many companies like Alyn Industries are doing too little too late to protect themselves against the penalties associated with a Form I-9 inspection. Take action today. Contact I-9 Okay about Form I-9 training and independent I-9 audits.

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