If you’re familiar with Notices of Inspection (NOI) from Immigration and Customs Enforcement, more likely than not, you’re also familiar with their corresponding fine schedules. Don’t worry if this is new information to your ears; you’ve come to just the right place.
At Form I-9 Compliance, LLC we are experts in our field so that you may focus on yours. Continue reading below for our breakdown of interpreting ICE fine schedules…
Knowing Hire / Continuing to Employ
The following fine schedule applies when an employer has been determined to knowingly hire or continue to employ individuals who are not eligible for United States employment. An agent or auditor will determine the Violation Percentage by dividing the number of knowing hire and continuing to employ violations by the number of employees for which a Form I-9 should have been prepared.
Let’s say a company should have prepared 10,000 Forms I-9 and an auditor determines they have 1,500 knowingly hire and/or continue to employ violations. Their Violation Percentage is 15% (1,500/10,000).
ICE will then review the number of times the company has broken that rule to assign a tier level. First-time violators pay the first tier amount and so on, up to three tiers. The fine amount can increase significantly depending on the assigned tier.
Going back to our hypothetical company with a Violation Percentage of 15%. If this is their first-time offense, the company would pay a fine of $1,140, but if it is determined to be their third offense, the amount increases to a staggering $8,547. Please keep in mind, this standard fine amount applies to each knowing hire and continuing to employ violation.
Here is a sample calculation for the potential fine that can be levied against a company with 15% Violation Percentage and 1,500 knowing hire violations:
(Tier 1 Fine) x (Total Violations) = (Potential Fine)
$1,140 x 1,500 = $1,710,000
Substantive / Uncorrected Technical Violations
The following fine schedule applies when an employer has been determined to contain substantive or uncorrected technical violations on their Forms I-9. An auditor or agent will perform the same steps as before, identifying the company’s Violation Percentage and tier level to determine the corresponding fine amount. The range of the penalty amounts are as follows:
The standard amount listed in the table relates to each Form I-9 with violations.
It doesn’t stop there. A fine can be increased or decreased by up to 25% due to the following matrix:
About Form I-9 Compliance, LLC
Form I-9 Compliance provides employers with simple solutions to help attain legal compliance through our comprehensive suite of services, which include I-9 Auditing, Electronic I-9, E-Verify and Consulting solutions.
Additionally, we staff a dedicated support team for hands-on assistance and supply educational resources, such as complimentary webinars, to keep our clients informed of and adapting to an ever-changing landscape of compliance policies. Our executive team is uniquely positioned to materially assist employers in maximizing the benefits and cost savings inherent with electronic Form I-9 processing.