The Department of Homeland Security (DHS) recently released new increased fines for Form I-9 penalties, in accordance with annual inflation. The new fines are effective immediately for penalties assessed after June 17, 2020 for associated violations which occurred after November 2, 2015.
In summary, the minimum fine for paperwork violations increased from $230 to $234 per individual form, while the maximum fine for paperwork violations increased from $2,292 to $2,332 per individual form. Fines for knowingly hiring or continuing to employ unauthorized workers went up as well.
How does ICE calculate Form I-9 penalties? ICE agents follow specific procedures for calculating fines, adjusted annually for inflation. ICE agents divide the number of violations by the number of employees for which a Form I-9 should have been prepared to obtain a violation percentage. This violation percentage provides a base fine amount depending on whether this is a first offense, second offense, or a third or more offense. For example, if ICE determines there are substantive or uncorrected technical violations for 50% of 100audited Form I-9's, the penalties could range from $97,600 to $116,600.
For example, if ICE determines there are substantive or uncorrected technical violations for 50% of 100 audited Form I-9's, the penalties could range from $97,600 to $116,600.
As we blogged about here, DHS has relaxed some of the Form I-9 requirements for all remote workplaces during the COVID-19 pandemic. However, I-9 audits continue to be on the rise and these hyper-technical requirements can be extremely tricky and expensive. It is critical for employers to consult with counsel and document whatever decisions are made.
Because we can never be sure when ICE might come knocking, it is imperative that employers are prepared. Be diligent, conduct internal I-9 audits yearly, train staff on I-9 compliance, and keep organized records.
The Sessions Firm's I-9 Verified program provides comprehensive, customized services including Form I-9 audits, Form I-9/immigration policy development, Form I-9 compliance training, and electronic Form I-9 storage implementation policies and training. Our experienced attorneys can guide you through these new Form I-9 changes and what your business needs to ensure compliance.
Have questions about Form I-9 compliance? We are here to help!
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