Violations Pose a Threat to Your Business.
Small businesses can now be hit hard, for administrative errors or “technical” violations, rather than for just substantive ones. Lack of compliance with the federal government employment verification form — the I-9 — could represent a serious threat to their business’s profitability and, worse, its survival:
A big factor here is the I-9’s rapidly changing regulations. A series of changes to I-9 rules in 2017 opened the door to potential legal trouble for thousands of small businesses that are unprepared for the new compliance requirements.
What you need to know
Employers are responsible for verifying the identity and employment authorization of each person they hire. Noncompliance with those verification requirements is a civil violation that’s as serious as knowingly hiring or continuing to employ an unauthorized alien here in the United States. It can also result in heavy fines and penalties.
In November of 2016, a new “smart” online Form I-9 version was released, aimed at minimizing the rate of errors/omissions and ensuring a higher rate of employer compliance. In July 2017, a newly revised Form I-9 was issued, which became mandatory on Sept. 18, 2017.
New and higher penalties were also implemented: Fines for all Form I-9 compliance violations had doubled from their previous levels. Those fines now range from $110 to $1,100 per violation up to a range of $216 to $2,156 — not per individual form, but per error or omission on that form.
Big fines can mean devastation.
Penalties of this magnitude, levied against a small business, can lead to utter devastation.
And there’s no relief in sight: The government is only expected to intensify its spotlight on employers, in search of multiple violations per form. And ICE is ramping up its ranks: The agency’s current 6,000 enforcement officers and 6,000 special agents are reportedly going to increase in number by an additional 10,000 mandated officers and agents, to support an expected exponential increase in audits and enforcements.
Stay in Compliance
As part of a general H-2B audit, DOL often will ask to review employer I-9 Forms. Should DOL find problems with an employer’s I-9 Form procedures and compliance, it may forward them to Immigration and Customs Enforcement (ICE). Don’t fail an audit due to an easily corrected mistake such as using an old form. The expert team at Phoenix Labor has over 30 years of H-2B experience, meaning we can help to ensure you are taking all of the right steps and that all of your pieces are in place. Contact us to discuss further options.
This article does not constitute legal advice and should not be taken as such.