Will I-9 Violations Cost Your Business?

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.

I-9 Document Inspections Surprise 1,000 Employers

On Tuesday, Immigration and Customs Enforcement (ICE) issued another round of dreaded Notices of Inspection to 1,000 U.S. employers.  In their continuing effort to enforce every employer’s responsibility to verify the work eligibility of every person hired, ICE is conducting document inspections focused on the Form I-9.

According to ICE spokesperson Gillian Christensen,

“The inspections will touch on employers of all sizes and in every state in the nation, with an emphasis on businesses related to critical infrastructure and key resources.”

ICE inspection notices typically give an employer 3 business days to turn over their I-9s for all current employees and for employees who have been terminated within the last 3 years.  ICE auditors go through the forms with a fine tooth comb looking for mistakes and omissions for which the employer is heavily penalized.

The document inspections often lead to civil money penalties calculated in tens of thousands and sometimes millions of dollars…even when no illegal workers are present.  In addition to the fines assessed, these ICE audits may cost a company millions in lost productivity not to mention attorneys’ fees and the impact this type of inspection may have on the corporate image in the public’s eye.

You can be sure there are 1,000 HR managers and company executives who haven’t slept much since Tuesday when they were surprised by ICE.

At I-9 Okay we continue to urge employers to take a proactive approach to Form I-9 compliance.  Every day I meet HR managers and company executives who assure me they are focused on I-9 compliance but upon further review I discover large gaps in their procedures that are leaving them at risk in the event of an ICE investigation.

The I-9 form is the one piece of paper that if executed properly may protect you from knowingly hiring illegal workers.  It deserves your full attention!  More times than not, while conducting internal audits, we find mistakes and omissions that would cost an employer dearly during an ICE inspection.  This is particularly true with companies that have multiple people responsible for completion of the form, have had turn-over in the HR department, or who have not had any formal training concerning proper I-9 procedures.

The USCIS through the IMAGE program (ICE Mutual Agreement between Government and Employers) recommends some important Best Practices for employers to implement to ensure compliance with the requirements of the Form I-9.  The Best Practices include providing formal I-9 training for your staff, conducting internal audits, and developing a comprehensive compliance plan.

If you have not implemented these Best Practices, what are you waiting for?  ICE may surprise you next.  Are you ready?

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.

It’s Time to Take Form I-9 Compliance Seriously

A Subway franchisee in North Carolina with 11 employees is probably wishing he had proper I-9 procedures in place before ICE visited him and cost him a lengthy legal battle and over $27,000 in fines.  Macy’s department stores in Florida are licking their wounds after answering allegations of document abuse and paying stiff penalties concerning the Form I-9.  Chipotle is reeling after its Minneapolis restaurants were audited by ICE and is now facing more scrutiny in Virginia and DC.  As a result of the audit they have fired hundreds of employees and are facing a public relations nightmare.

How Will Your Company Fair When ICE Comes Knocking?

Immigration and Customs Enforcement (ICE) is on a mission and your business is in their crosshairs.  This week, ICE issued 1000 Notices of Inspection to companies just like yours requesting Form I-9 documentation for all current employees plus the I-9 records of all employees terminated within the last 3 years.

Statistically, over 80% of those employers will pay civil money penalties for errors and omissions on the I-9.  An ICE document inspection is a full audit of your company’s I-9 documents and EVERYTHING counts!  It is not enough to have a Form I-9 on file for all employees.  It must be 100% complete and accurate or you will pay significant fines.  The more employees you have, the higher your risk.

It is a Costly Misconception that ICE is Only Looking for Illegal Workers

The above referenced Subway in North Carolina paid fines averaging over $2000 per employee.  If your company has 100 employees, you could be facing fines of a quarter of a million dollars or more!  Are you willing and/or able to take that chance?

As a proactive, prudent employer you should address your Form I-9 processes today.  Focus on Best Practices such as:

• Train hiring managers to properly complete the Form I-9
• Develop a Company Compliance Plan concerning I-9 procedures
• Conduct an independent 3^rd party audit to assess your risk BEFORE ICE visits

Aggressive worksite enforcement by ICE is here to stay and there is no excuse for ignoring your responsibility to the Form I-9 any longer.  Taking affordable proactive steps now can save you time, money, and your corporate image in the future.

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.