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I-9 Forms and Potential Audits

Dec 26 | 2013  by

Federal law mandates that businesses must obtain and retain I-9 Forms for all their employees. Many small businesses don’t realize just how important this aspect of hiring is. 

Immigration Reform and Control Act (1986)

The Immigration Reform and Control Act (1986) mandates that all employers must use I-9 Forms to verify the employment eligibility of individuals hired after November 6, 1986. The U.S. Immigration and Customs Enforcement Agency (ICE) conducts routine audits of companies. The fines that it charges have raised substantial revenues in the last few years. Since 2009, ICE has conducted over 7,500 audits and imposed over $80 million in fines. In 2011 alone, ICE conducted 2,740 audits and assessed over $7 million in fines.

An ICE officer will usually send a notice to the business owner that the officer will conduct an inspection at the business in three days, to determine whether there is compliance with the I-9 requirements.  The ICE officer will also request other business documents and information in order to determine whether the I-9 forms are accurate.

Penalties for Missing I-9 Forms

There can be substantial penalties for problems that the ICE officer finds during his inspection, and it is very important that I-9 forms are not falsified or back-dated.  According to the I-9 form:  “Federal law provides for imprisonment and/or fines for false statements or use of false documents in connection with the completion of this form.” The employer who hires an unauthorized worker may face fines ranging from $250 to $5,500 per worker. Furthermore, the federal government can prohibit such an employer from participating in government contracts for a year. Other immigration laws can also criminally prosecute an employee who knowingly accepts fraudulent documentation.

An employer who fails to properly keep I-9 forms can be fined $110 for each form, up to $1,100. Even if the employee is legally authorized to work in the US, a business will still be fined. An individual who knowingly commits or participates in document fraud may be fined between $375 and $3,200 per document for the first offense and between $3,200 and $6,500 per document for subsequent offenses.

Contact Fausone & Grysko, PLC Today

Fausone & Grysko, PLC assists businesses in complying with state and federal law. If you have questions regarding I-9 Forms, please contact us at (248) 380-0000 or www.FB-Firm.com.