It is common knowledge that the U.S. government has been performing widespread investigations and audits of employers cracking down on the employment of undocumented workers.  Immigration and Customs Enforcement (“ICE”) recently reported record-breaking figures citing the highest deportation numbers and the most employer audits in our nation’s history.

Because of this, employer compliance is becoming more complex and enforcement activities are increasing at a record rate. The days of thinking that immigration enforcement is only targeting industries that employ a diverse workforce, such as health care, hospitality, restaurant, garment and the construction business, are long gone. Every employer must be aware of immigration laws as they relate to the processing and management of their I-9 forms and other compliance programs.  Many audits have resulted in fines for well known and respectable employers, large organizations and those that employ foreign workers, as well as small businesses that unintentionally filled out I-9 forms incorrectly.  Document mistakes – missing signatures, dates, over-documentation problems on I-9’s, have resulted in fines from $110 to $1,100 per mistake.

A recent examples of an I-9 document violation is a Colorado restaurant franchise that was fined $32K after an ICE inspection – not for hiring any illegal workers, but for I-9 document errors.

Chipotle Restaurant chain in Minnesota has recently been in the news for hiring illegal employees.  Pursuant to an ICE I-9 audit, Chipotle was forced to terminate some 50 workers.  There appears to be widespread I-9 restaurant investigations taking place in Minnesota.  Other restaurant chains in the area such as McDonald’s and Sizzler are concerned and have begun to proactively look into E-verify, the Internet-based system operated by USCIS in partnership with the Social Security Administration (SSA) that is free to employers and available in all 50 states.

The key to I-9 compliance for most organizations starts with a thorough self-examination of existing paper I-9’s, E-Verify submissions (if applicable), standard operating procedures, and past practices.   It is recommended that you consult with a licensed immigration or employment attorney who is knowledgeable in the practice of  employer compliance, specifically I-9 audits, training and policy development that can possibly save you thousands of dollars in fines and penalties.

Visit our new I-9 Employer Resource Center for helpful information and for our services and solutions.

Employers can no longer afford to think that because they don’t hire foreign nationals, they don’t have any I-9 issues or need to comply with I-9 immigration regulations. The I-9 form is required documentation for all US citizens and non-citizens …every single employee must fill out an I-9 Form.

In our employer compliance audit practice, we find that every employer has I-9 violations, from minor clerical errors and unintentional mistakes, to document discrimination issues due to lack of training on I-9 regulations and document requirements.

Immigration attorneys, HR professionals, auditing firms and other professionals, if skilled in the practice area of employer compliance audits, could qualify as a viable vendor in handling I-9 audits, training and policy development.

There are a lot of do and don’t lists, blog postings, podcasts, free seminars and more on this topic which is why you should most particularly pay close attention as to whether or not the provider has a broad understanding of employer immigration compliance law and policy.  Discuss with them their previous and current experience, can they answer your questions, what services do they provide, what solutions are they proposing to suit your specific needs, and what type of follow-up consultation do they provide post-I-9 project completion.

Immigration Solutions regularly represents clients from all industries in developing effective I-9 policies and compliance programs. We assist our clients proactively in establishing and maintaining effective corporate policies and procedures, before one of the five government agencies involved with enforcement knocks on your door.

The Department of Justice issued an excellent guide to employers (see below) today on the Do’s & Don’ts of name and social security “No Matches”:

DO:
1. Recognize that name/SSN no-matches can result because of simple administrative
errors.
2. Check the reported no-match information against your personnel records.
3. Inform the employee of the no-match notice.
4. Ask the employee to confirm his/her name/SSN reflected in your personnel records.
5. Advise the employee to contact the Social Security Administration (SSA) to correct
and/or update his or her SSA records.
6. Give the employee a reasonable period of time to address a reported no-match with
the local SSA office.
7. Follow the same procedures for all employees regardless of citizenship status or
national origin.
8. Periodically meet with or otherwise contact the employee to learn and document the
status of the employee’s efforts to address and resolve the no-match.
9. Submit any employer or employee corrections to the SSA.

DON’T:
1. Assume the no-match conveys information regarding the employee’s immigration
status or actual work authority.
2. Use the receipt of a no-match notice alone as a basis to terminate, suspend or take
other adverse action against the employee.
3. Attempt to immediately re-verify the employee’s employment eligibility by
requesting the completion of a new Form I-9 based solely on the no-match notice.
4. Follow different procedures for different classes of employees based on national
origin or citizenship status.
5. Require the employee to produce specific documents to address the no-match.
6. Ask the employee to provide a written report of SSA verification.

We link to SSA No Match FAQs

For more information on the anti-discrimination provision of the Immigration and Nationality
Act, feel free to call our office or contact the OSC through its employer telephone hotline or visit OSC’s Website:
Employers: 1-800-255-8155
Website: http://www.justice.gov/crt/osc/

Please visit our new employer I-9 resource center at:  www.I-9Audits.com

The Justice Department announced on November 10th that it has reached a settlement agreement with Hoover Inc., a leading manufacturer of vacuum and carpet cleaners with facilities in Ohio and Texas, to resolve allegations that Hoover engaged in a pattern or practice of employment discrimination by imposing unnecessary and discriminatory hurdles in the I-9 process upon lawful permanent residents.

According to the department’s findings, Hoover required all permanent residents who presented a permanent resident card (green card) for I-9 purposes to produce a new green card when theirs expired. In contrast, Hoover’s U.S. citizen workers were not required to present new documents. Like U.S. citizens, permanent residents are always work authorized, regardless of the expiration of their documentation. The Immigration and Nationality Act (INA) prohibits employers from treating permanent residents differently than U.S. citizens in the I-9 process.

Under the terms of the settlement, Hoover has agreed to pay $10,200 in civil penalties. Hoover will also train its human resources personnel about employers’ nondiscrimination responsibilities in the I-9 process, and it will provide periodic reports to the department for one year.  Here’s the Press Release

This is one of several recent settlements brought by the DOJ against employers that engage in document abuse.  This occurs when employers treat employees differently based on national origin or citizenship status during the I-9 process.

What does this ruling mean for employers?

Although some I-551 Permanent Resident Cards have an expiration date, employment authorization continues and there is no need to reverify this document upon expiration.  An expiration date on the Form I–551 reflects only that the card must be renewed, not that the bearer’s work authorization has expired,  8 C.F.R.§ 274a.12(a)(1). Further Question 39 on Pg. 36 of the M-274 Handbook states:  You may not re-verify an expired U.S. passport or passport card, an Alien Registration Receipt Card/Permanent Resident Card (Form I-551), or a List B document that has expired.

Here are some examples of prohibited practices that fall under document abuse:

1) Setting different employment eligibility verification standards or requiring different documents based on national origin or citizenship status. One example would be requiring non-U.S. citizens to present DHS-issued documents like “green cards”

2)  Requesting to see employment eligibility verification documents before hire and completion of the Form I-9 because an employee appears foreign or the employee indicates that he or she is not a U.S. citizen.

3)  Refusing to accept a document or hire an individual because an acceptable document has a future expiration date.

4)  Limiting jobs to U.S. citizens unless a job is limited to citizens by law.

5)  Asking to see a document with an employee’s alien or admission number when completing section 1 of Form I-9.

6)  Asking a lawful permanent resident to re-verify employment eligibility because the person’s “green card” has expired.

Should you have any questions, or know that your I-9’s have problems, be smart and proactive and contact an experienced professional in this field who knows the law and can assist you.

We have a terrific I-9 Resource Center for Employers and are available to design a cost-effective audit and training program to suit your particular needs.

Our November Special Edition Newsletter on Employer Compliance is now available.  We reference what employers need to be aware of in light of the results of the mid-term elections, the increase in enforcement that is predicted to continue and how best to protect  yourself in this business climate.

Check out our new I-9 website and take the free Survey.

The president of a Rancho Cucamonga, Calif., furniture manufacturing business was charged Monday with criminal violations stemming from a probe by ICE ‘s Office of Homeland Security Investigations (HSI) into allegations the company hired unauthorized alien workers.

The president and principal shareholder of Brownwood Furniture,  Rick Vartanian, is charged in a criminal action with one count of obstruction of justice and one misdemeanor count of continuing to employ unauthorized workers. Court documents from November 2009 indicate that Vartanian told ICE that unauthorized workers identified during an earlier HSI audit were no longer employed by the company, when, in fact, the company continued to employ 18 of those workers and had taken steps to shield them from detection by HSI. HSI agents executed a search warrant at the company in December 2009 and discovered the 18 unauthorized employees still working there. Vartanian, who has already agreed to pay a $10,000 fine, faces a statutory maximum sentence of 66 months in prison.

This action comes  not more than 3 weeks following previous action taken against Brownwood Furniture’s vice-president, Michael Eberly, charged in a criminal case filed Oct. 12th  with one count of continuing employment of unauthorized workers, a misdemeanor. Eberly is scheduled to make his initial court appearance Nov. 19th.  According to the charging document, Eberly knew that many of the furniture company’s workers were unauthorized and continued to employ them. Eberly, who has agreed to pay a $5,000 fine, also faces a maximum sentence up to six months in prison.

The investigation was a result of an anonymous tip  that resulted in an investigation in July 2009 where it was discovered that 61 of the firm’s 73 employees had submitted invalid documents to obtain their jobs. After HSI notified the company about the discrepancies, the executives told investigators the unauthorized workers had been terminated. However, when HSI agents executed a search warrant at the business in Dec. 2009, they encountered 30 unauthorized workers, 18 of whom had purportedly been terminated following the July audit.

We refer to the ICE Press Release

It’s common knowledge that the U.S. government has been performing widespread investigations and audits of employers to crack down on employment of undocumented non-citizens. Immigration and Customs Enforcement (“ICE”) recently reported record-breaking figures citing the highest deportation numbers and the most employer audits in our nation’s history, and states:

“Since January 2009, ICE has audited more than 3,200 employers suspected of hiring illegal labor, debarred 225 companies and individuals, and imposed approximately $50 million in financial sanctions-more than the total amount of audits and debarments than during the entire previous administration.”

Because of this, employer compliance is becoming more complex and enforcement activities are increasing at record pace. The days of thinking that immigration enforcement is only targeting industries that employ a diverse workforce, such as healthcare, hospitality, restaurants, garment and the construction business, are long gone. Every employer must be aware of immigration laws as they relate to the processing and management of their I-9 forms and have a trained staff for those charged with the responsibility of managing I-9’s.  Many audits have resulted in fines for well known and respected employers,  for those that employ foreign workers, as well as businesses, both large and small, that unintentionally filled out I-9 forms incorrectly.  Document mistakes – missing signatures, dates, over-documentation problems on I-9’s, have resulted in fines from $110 to $1,100 per mistake.

Recent examples of I-9 violations and penalties involve:

1. A Colorado restaurant franchise who was fined $32K after an ICE inspection – not for hiring any illegal workers, but for I-9 document errors.
2. The clothing giant, Abercrombie & Fitch was recently fined over $1 Million when an I-9 audit revealed multiple technology errors with the electronic I-9 system they were using, shedding light on the fact that employers are not only responsible for the people that  they hire, but also for the internal systems that they choose to use to verify the eligibility of their workforce.
3. The Department of Justice recently settled with Catholic Healthcare West, the 8th largest  hospital provider in the nation, on discrimination against work-authorized individuals.  CHW agreed  to pay $257,000 in civil penalties, the largest amount ever paid to resolve such allegations.  This settlement sends a strong message to all employers how important it is to have a staff properly trained on I-9 regulations and on all sections of the form.  All workers who are authorized to work in the USA have the right to look for a job without encountering discrimination because of their immigration status or national origin”, said Thomas E. Prerez, Asst. Attorney General for the Justice Department’s Civil Rights Division.

The key to I-9 compliance for most organizations starts with a thorough self-examination of existing paper I-9’s, E-Verify submissions (if applicable), standard operating procedures, and past practices. While there are many checklists and do-it-yourself guides and Podcasts available on the Internet and elsewhere, consulting a licensed immigration or employment lawyer who is familiar with I-9 and E-Verify compliance issues can save employers hours of research, provide a solution tailored to the organization and save the employer thousands of dollars in fines and penalties.

Visit our new I-9 Employer Resource Center and contact our office.  We work  proactively with our clients to provide comprehensive, and cost-efficient assistance in developing and maintaining best practices necessary to assure compliance with USCIS and Department of Labor regulations.

FedEx Corp. will pay the state of Montana a $2.3 million settlement over misclassification of FedEx Ground drivers as independent contractors, Montana Attorney General Steve Bullock announced Oct. 21.

The settlement follows a yearlong investigation by Montana that found FedEx Ground drivers are employees, not independent contractors, and that FedEx owed unemployment taxes, penalties and interest, according to the attorney general’s office.

Montana will reimburse drivers $1.1 million for unemployment insurance coverage that was paid by them. The remaining $1.2 million will go to the state’s general fund.

FedEx did not admit wrongdoing in the settlement.

“As a result of the investigation, FedEx will change its business practices in Montana,” according to the attorney general’s office. FedEx Ground will “implement a new pickup and delivery model in Montana,” the office reported.

What does this mean for employers? Although you are not required to fill out I-9 forms for independent contractors or their employees, you must not knowingly use contract labor to circumvent the law against hiring unauthorized aliens.

Should you have any questions regarding this or require any other type of employer compliance consultation, please contact us.   Please take a look at our new I-9 Employer Resource Center.

LONG BEACH, CA, October 22, 2010. Immigration Solutions, a leading full service consulting, immigration, and employer compliance organization, announces its new I-9 Employer Resource Center that is uniquely designed to assist businesses in developing and maintaining compliant employment practices.

Reputable industry leaders are being audited, as employer compliance becomes more complex and enforcement (investigations and audits) increase. In order to effectively deal with these issues and avoid the very severe consequences of fines and penalties for non-compliance, employers must take the time to develop a strategy and be prepared in advance with a Compliance Program.

Many companies struggle with determining who to turn to for their I-9 compliance needs. Immigration Solutions approaches its Employer Compliance practice with the same exceptional service level clients have experienced from their other practice areas. Their talented and experienced team offers onsite or offsite in-depth I-9 audits, compliance training, assistance with the development of training manuals and compliance policies and procedures, and on-call consulting services. They additionally assist their clients in responding to government Notices of Inspection and audit requests.

With pricing that is cost-efficient and tailored to the needs of their clients, Immigration Solutions is positioned to offer high touch services and solutions to their clients at affordable prices.

Websites: www.I-9Audits.com
www.immigrationsolution.net

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About Immigration Solutions

Immigration Solutions provides US and Canadian immigration services to individuals and employers throughout the USA and abroad. They specialize in business immigration and have a depth of experience in the IT, health care, arts & entertainment, and sports industries, amongst others. Their services include complex business visas for investors, multinational managers, skilled professionals and outstanding individuals in science, business, education, athletics and entertainment. They additionally provide employer compliance consulting services on proper I-9 (Employment Eligibility Verification) auditing, training, and work with their clients to develop compliant immigration policies and procedures. They offer these services, as well, to government contractors and advise on FAR E-Verify enrollment and compliance issues.

The Justice Dept announced today that it reached a settlement with Catholic Healthcare West (CHW) to resolve allegations that they engaged in a pattern of citizenship discrimination by imposing discriminatory hurdles to employment for work-authorized individuals by requesting that non-US citizen and naturalized US citizens present more work authorization than required by law. CHW is the 8th largest hospital provider in the nation, operating facilities in California, Nevada and Arizona. CHW agreed to pay $257,000 in civil penalties – the largest amount of civil penalties ever paid to resolve such allegations.

This settlement sends a strong message to all employers how vitally important it is to have staff that is charged with the I-9 process properly trained on the laws governing I-9’s and specifically on each section of the form.  All workers who are authorized to work in the USA have the right to look for a job without encountering discrimination because of their immigration status or national origin”, said Thomas E. Prerez, Asst. Attorney General for the Justice Department’s Civil Rights Division.