Upper Level Management Should Pay Attention to the Form I-9

How Do You Know?

• What if your hiring managers aren’t taking the Form I-9 seriously?
• What if the I-9 is just one more thing on their “to do” list?
• Worse yet, what if they are purposefully circumventing the I-9 process in order to hire illegal workers?

When Will You Find Out?

If you are like Howard Industries, a manufacturing company in Mississippi, you find out when Immigration and Customs Enforcement (ICE) investigates your business and you ultimately pay $2.5 million dollars in fines as a result of the actions of one human resources manager.

According to court records this one “rogue” HR manager routinely hired unauthorized workers who presented fake documents and completed the Form I-9 with the false information. The same HR manager was also accused of ignoring notices from the Social Security Administration that SS numbers submitted for some employees were invalid.

ICE claimed the HR manager regularly instructed employees to obtain fake IDs. He plead guilty and faces a maximum of 5 years imprisonment on the conspiracy charge and on each employee verification fraud count. He also faces a minimum of 2 years of imprisonment for the aggravated identity theft charge and a possible fine up to $250,000.

As a result of the actions of this one “rogue” employee, Howard Industries was charged with knowingly and willfully conspiring to encourage and induce undocumented workers to reside in the U.S. and knowingly conspiring to conceal, harbor and shield from detection such workers. The company agreed to plead guilty to the one-count felony of “Conspiracy to commit offense or to defraud United States” which called for a term of not less than one and not more than 5 years of probation and a fine of up to $500,000. The fine was substantially enhanced to $2.5 million due to the nature of the crime, the number of workers involved and the size of the company.

What’s the Message Here?

Failure to comply with Form I-9 requirements can lead to huge fines, criminal indictments, and even prison sentences! The impact on your company’s image due to negative press as well as the enormous legal cost of defending yourself must also be considered.

To protect your business I urge you to order a full 3rd party audit of your I-9 records by a qualified expert. Sure you can audit your own I-9 forms, but an in-house audit is a case of “the fox watching the hen house” and offers little if any protection against I-9 abuse.

You should also develop a comprehensive Form I-9 policy and procedure plan to address such issues as document fraud. Order training for all your hiring managers so they fully understand the entire I-9 process and the risk of non-compliance.

ICE investigations continue to increase by the day. Now is the time to take a good look at your Form I-9 compliance program and get the help you need to protect your business from financial ruin.

Form I-9 Violations Bring Bad Press

Your company’s image is one of your most important assets. It is likely you have spent years and tens of thousands of dollars, maybe even millions, developing your brand. It is likely that you have a marketing plan and budget.  It is likely you spend a lot of time and energy developing your products and services to exceed your customer’s expectations.

What if It All Comes Crashing Down?

What if one day, it all goes terribly wrong? Ask Toyota. Their marketing plan shifted suddenly from promoting their products to damage control due to a very public defect in their cars was discovered. Hundreds of millions of dollars later, their reputation as “the” quality car maker has been irreparably damaged. They are now on a mission to repair the consumer’s trust it took them decades to earn.

What Does this Have to do with Form I-9 and Immigration Compliance?

Ask Chipotle. In the wake of an ICE (Immigration and Customs Enforcement) I-9 document inspection in Chipotle Mexican restaurants in Minneapolis, the restaurant chain fired hundreds of workers. The firings prompted protests in 9 states where protesters chained themselves together in restaurants and carried signs. According to Fox News9 in Minneapolis, 8 people were arrested during the protest in the Minneapolis restaurant.

As the immigration debate rages on and ICE continues its aggressive I-9 enforcement strategies, employers are at greater risk of this kind of negative publicity. The importance of 100% Form I-9 compliance is illustrated over and over again. The employer is responsible for completing the Form I-9 timely and accurately, updating the form when required, and retaining the form in accordance with the law.

The very sad fact is most companies get it wrong…even the ones who believe they are complying with Form I-9 requirements are not. If you haven’t had a qualified expert review your I-9 process, I can almost guarantee your company is at risk. Are you willing to bet your reputation on it?

Independent 3rd Party Form I-9 Audit

ICE considers an expert 3rd party Form I-9 audit a “Best Practice” in an employer’s effort to achieve full compliance. Failing to plan is planning to fail. What will happen if you “fail” an ICE inspection? Perhaps Chipotle’s mistakes will be the catalyst that drives you to seriously focus on your company’s Form I-9, Employment Eligibility Verification compliance and hire the right expert to assess your compliance efforts.

To discuss your particular situation with a Form I-9 professional, take advantage of I-9 Okay’s FREE 15 minute consultation.  Call 1-866-580-9390 today.

Form I-9 compliance a priority for Obama Administration

The Wall Street Journal is reporting Immigration and Customs Enforcement (ICE) officials announced they are ramping up their existing crackdowns on employers who hire illegal workers by creating a new employment compliance inspection center in Virginia. The new office will scrutinize Form I-9 employee data from employers selected for I-9 audits and immigration investigations.

During the past fiscal year, ICE conducted audits of more than 2,740 companies — nearly twice as many as it completed the year before. In the wake of these audits, Immigration officials handed companies a record-breaking $7 million in civil fines. According to ICE officials, Form I-9 audits are “one of the most powerful tools the federal government has to ensure that businesses are complying” with the law.

“Ultimately, it is in a company’s best financial interest to proactively comply with the law now rather than to face potential fines or criminal prosecution for noncompliance in the future,” an ICE spokeswoman said.

The Virginia center is expected to have 15 auditors who will support ICE’s immigration enforcement strategy field audits. According to John Morton, chief of U.S. Immigration and Customs Enforcement the new center will “address a need to conduct audits even of the largest employers with a very large number of employees.”

Learn why it is a good strategy to have an independent 3rd party audit of your Forms I-9 procedures and policies before ICE comes knocking at your door.

Independent Form I-9 Audits Reduce Risk

Since January 2009, under the directive of the current administration, ICE (Immigration and Customs Enforcement) has audited more than 3,200 employers, debarred 225 companies and individuals, and imposed approximately $50 million in financial sanctions – more than the total amount of audits and debarrments issued during the entire previous administration. There is no doubt ICE will continue aggressive enforcement activities against employers in 2011.

The focus of this enforcement activity is concentrated on the Form I-9, Employment Eligibility Verification, and whether or not an employer has properly completed the I-9 for each employee hired. This aggressive strategy puts every employer at risk of a government inspection and the potential to pay thousands of dollars in fines and penalties, regardless of the immigration status of their employees. Employers must be crystal clear – this is NOT about finding illegal workers, this enforcement is about auditing an employer’s compliance with the requirements of the Form I-9.

Think Your Business is Form I-9 Compliant?

The simple fact is most employers are not fully compliant with Form I-9 requirements and upon government inspection will be fined, on average over $800 per employee! You are probably thinking – this could never happen to my company. We have reviewed our Forms I-9 and have even conducted our own internal audit.

Unfortunately, this strategy is rarely sufficient. According to ICE, companies that audit their own Forms I-9 are not significantly reducing their potential fines and many times may make matters worse, because much of this audit work is performed by the same HR managers that made the previous errors.

External Form I-9 Audits are Recommended by ICE

Internal audits often reveal significant errors made by hiring managers and it’s only natural to want to hide or minimize these mistakes in order to save face and retain one’s job. Unfortunately, ICE typically regards these cover-ups as serious matters which may lead to charges of falsification, perjury, and document tampering. ICE representatives have made it clear that self-audits typically result in more difficult situations for the employer than if an audit is done by a qualified, experienced independent auditor.

Performing an internal self audit of the Form I-9 may very well increase your risk, rather than decrease the potential for penalties and fines. ICE advises it is a best practice to complete an annual audit of your I-9s using an experienced independent auditor. Any other type of audit may leave an organization at risk or in worse condition than before the audit.

Make 2011 the year you reduce your company’s liability. Start with a Form I-9 audit performed by a qualified expert and develop an Employment Eligibility Verification compliance plan to ensure 100% compliance going forward. Remember, ICE isn’t looking for illegal workers, they are looking at your Form I-9 paperwork and even small, “innocent” mistakes will cost you!

Is Your Company Willing to Risk a 1/4 of a Million Dollars?

The U.S. Department of Justice announced  they reached a $257,000 settlement with Catholic Healthcare West (CHW) to resolve allegations the company engaged in a pattern or practice of citizenship status discrimination during the process of hiring new employees.

During the investigation, the Department of Justice (DOJ) determined there was reasonable cause to believe CHW required non-U.S. citizens and naturalized U.S. citizens to present more work authorization documents than required by the Form I-9. The anti-discrimination provision of the Immigration and Nationality prohibits treating individuals differently based on national origin or citizenship status.

What Is the Risk to My Company?

You need to know the Department of Justice is aggressively enforcing anti-discrimination provisions utilizing high-profile investigations against employers such as Macy’s, Morton’s Steakhouse, and other employers.

Many employers do not fully understand the law and may find themselves at risk when they fully believe they are just trying to protect themselves from hiring illegal workers.

There are important steps every employer must take to insure they are not only complying with the requirements of the I-9 process but are also not overstepping the antidiscrimination provisions of the law.

What Your Company Must Do Today to Avoid I-9 Compliance Fines

1. Order an independent review of your company’s I-9 process and procedures.  A qualified I-9 consultant will identify areas of concern and recommend best practices to protect your business.
2. Establish a training program for your hiring staff.
3. Appoint a Compliance Manager in your company who is responsible for monitoring the entire Form I-9 process.
4. Use the most secure Form I-9 electronic completion and storage product.
5. Utilize the expertise of a qualified advisor.  An incomplete or incorrect Form I-9 process is putting your company at risk.  Giving the Form I-9 t the attention it deserves can give you the peace of mind to focus on your business and not your I-9 compliance issues.

Take action today…don’t be complacent!