Illegal Workers: Feds are Targeting Smaller Businesses

I had the pleasure of speaking at Good Morning, SLO a few weeks ago. It’s the monthly gathering of 200 or so business owners, managers, and non-profit leaders, mostly members of the San Luis Obispo Chamber of Commerce. I get to speak often to the group, although usually only for a minute or two and to introduce someone or an upcoming event. I usually get a laugh or two and that’s fun for me. But I have to be careful: I once helped introduce an upcoming performance of the very moving Teen Mommalogues and found myself explaining what “Mommalogues” meant by saying it was “the talk my mom never had with me.” I had to bite my tongue to stop there. OK, I admit – I didn't stop there. That’s what I mean about being careful.

When the Chamber first asked me to present the topic of immigration I balked: not a politician, don't want to get embroiled in a no-win debate, etc. Sure, there’s an HR element, but it would be a lot to cover in 5 minutes. And not sure I would get a laugh.

Would I try? Sure: heck, as my friend Marci says, I never met a microphone I didn't like.

The reason I thought the topic was justified? The Department of Homeland Security (DHS) (formerly the INS) has changed its approach to enforcing the laws around documented workers. They used to take years to investigate a big business, often by tracking the labor contractor, then they raided it, fined the owners, and deported hundreds of undocumented employees. Now the DHS is focusing on smaller businesses, expecting a smaller “take”, but figuring to make it up in volume. They are less concerned now with sending the undocumented workers home than they are with shutting down the source: businesses who employ them.

We are seeing a similar shift to volume in other agencies: OSHA and the Equal Employment Opportunity Commission (EEOC) have hired hundreds of investigators, as has the DHS, and they are now pursuing smaller fines. I heard a report that the EEOC levied a fine as low as $20,000 against a business for discrimination. I was shocked. In the past, the EEOC would not bother with any case that did not promise a fine over $100,000.

So even if your business is not AG or hospitality, be sure your documentation is in order. It all starts with the I-9, the form that documents the 1) identity, and 2), right to work in the United States for every one of your employees. Everyone. By the 3rd day of work. Or you have to let them go.

The list of acceptable documents is on the back of the form, and the directions on how to fill it out are pretty clear, but I come across errors by my consulting clients every day. And even the simplest error can cost you: from $110 - $1100 fine for incomplete or inaccurate paperwork. $10,000 for knowing hiring an undocumented worker. As we used to say at Home Depot: Read the directions.