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.

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?

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.

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.

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.

October 06, 2010: Immigration and Customs Enforcement (ICE) releases a Fact Sheet detailing the results of the 2009 change in their enforcement strategy.

“In April 2009, Secretary Napolitano announced changes to ICE’s worksite enforcement strategy – which reduced the need for large-scale immigration enforcement actions where employees were arrested and instead focused on finding evidence to criminally charge employers and to increase the use of tools like I-9 audits, fines and debarment.

• This year, ICE criminally charged a record-breaking 180 owners, employers, managers and/or supervisors – up from 135 in FY 2008 and 114 in FY 2009.
• ICE conducted more than 2,200 I-9 audits – up from more than 1,400 in FY 2009.
• Since January 2009, ICE has imposed approximately $50 million in financial sanctions.
• ICE debarred 97 business and 49 individuals in FY 2010, up from 30 and 53, respectively, in FY 2009.”

We encourage all employers to take action to ensure they are in full compliance with the requirements of the Form I-9.  The problem is you may not know what you don’t know about I-9 compliance.   ICE is auditing “document compliance” – not looking for illegal workers as many employers believe.

The recent Abercrombie & Fitch case is an expensive example of this.  A & F was fined over $1 million for paperwork violations!  There is no evidence they ever employed undocumented workers, they simply had issues with their compliance procedures and paperwork.

It is important to remember that Abercrombie & Fitch is a very large company with a very sophisticated HR department. It may be hard to imagine they could have made such a costly mistake…but the truth is over 80% of all employers have errors and omissions on their I-9s and ICE will impose financial sanctions against them.

Take these steps to insure your company is 100% compliant:

1. Order an independent I-9 audit of your company’s records;
2. Allow I-9 forms to be completed only by personnel who have had expert training;
3. Develop an Employment Eligibility Verification process and policy for company;
4. Store and maintain your Form I-9s according to the privacy and security requirements of the law.

Don’t put your business and your reputation at risk!  Have an expert review your Form I-9 processes – it may be the best business investment you can make.

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.

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.

Employers need to be aware ICE (Immigration and Customs Enforcement) is preparing to issue another round of Inspection Notices to businesses, demanding Forms I-9 and other employment eligibility documents. ICE is planning more worksite inspections in the last quarter of this year. To be able to accomplish this, ICE has added more agents and auditors, and is centralizing its auditing process. All of this adds up to the only logical conclusion, worksite audits are here to stay and employers must take notice.

If you think your business is immune from this process, think again. No business is exempt from a Forms I-9 audit and most employers who are inspected are caught totally off guard and unprepared.

When auditing an employer’s I-9 forms, ICE agents regularly find at least ½ of all forms reviewed have some kind of error. Each error can result in civil penalties with fine amounts ranging from $110-$1100 per occurrence.

On August 12, ICE released a report detailing enforcement efforts in Arizona during 2010. Among other statistics, the report included information about worksite enforcement in Arizona:

“ICE audited 59 Arizona businesses, resulting in the inspection of 21,587 Forms I-9. Of the 21,587 Forms I-9 inspected, agents determined that 2,177 employees presented “Suspect Documents.” 25 businesses were served a Warning Notice and 23 were served a Notice of Compliance based on the results of the Form I-9 audits. ICE is currently preparing several Notices of Intent to Fine for other business audited in FY10. In FY 09, ICE fined six Arizona companies with fine notices totaling more than $270,000.”

How Can an Employer Protect Their Business?

Take the Arizona statistics seriously!

1. Be proactive.
2. Review and correct your I-9s before ICE does.
3. Take additional steps and implement best practices, procedures and trainings to improve compliance.
4. Consider utilizing electronic I-9 completion and storage solutions to establish a good faith defense.
5. Get help from an expert to be sure you are acting appropriately and not violating anti-discrimination provisions.

Now is the time to implement best practices. ICE has promised and is delivering increased enforcement activity. All employers have had fair warning!

Failure to address Forms I-9 compliance is asking for trouble and gambling with your company’s future.

Is Your Company Prepared?

The sad truth is most U.S. employers are ignoring the threat of immigration audits.  When it comes to Form I-9 compliance, E-Verify, and state laws, many corporate officers are taking a “head in the sand” approach or are willing to “roll the dice” and bet their business will not be a target of an ICE (Immigration and Customs Enforcement) investigation.  This denial can be a very costly mistake.

ICE has promised to take a more aggressive approach to enforcement and they are delivering!  A few examples of this new Form I-9 enforcement strategy include reports in The Houston Chronicle about Texas employers who have been fined more than $600,000 since the fall of 2009 for I-9 violations.  One employer was fined $34,000 for failure to complete any Forms I-9.  Other Texas employers were accused of more serious issues of knowingly hiring unauthorized workers.

The New Jersey Record reports that more than 2 dozen businesses face fines totaling roughly $1.25 million after ICE investigations revealed Form I-9 errors.  This beefed up enforcement is taking place across the country in businesses just like yours.  No company is immune.  All businesses are fair game for an ICE inspection.

Costly non-compliance fines could devastate your company.  Being prepared for an ICE inspection before immigration agents serve your business with a Notice of Inspection is essential.  Compliance is not just a simple matter of having I-9 forms for all employees.  Form I-9 compliance involves a comprehensive corporate compliance plan including written protocols, regularly scheduled Form I-9 compliance audits, as well as defined best practices. Immigration compliance involves strategic planning and laser focus.

Failing to prepare is preparing to fail.  “Failing” an I-9 inspection is a costly lesson to learn, one that could bankrupt your business and ruin your company’s reputation.