Aggressive I-9 Compliance Plan Avoided Fines, Limited Liability
Published on: 8/29/2008
In December of 2007, a large North Carolina-based foodservice operation was raided by Immigration and Customs Enforcement "ICE" in response to a tip made by a dissatisfied customer. The company, a client of Oliver Branch in our Research Triangle Park office, operates about a hundred retail locations throughout North Carolina with over three thousand employees. ICE subpoenaed Client's I-9 forms and payroll records.
Mr . Branch performed an audit of client's I-9 forms. From this initial audit, it was clear that client was missing between twenty to thirty percent of their I-9 forms. Of the I-9 forms that were located, over eighty percent contained substantive violations and upwards of ninety percent contained paperwork violations.
As records were submitted to ICE, client faced potential civil liability to the tune of between two and three million dollars. Additionally, client's Human Resources Director, Operations Director, and store managers faced potential criminal liability.
In the face of tremendous potential liability, Mr. Branch worked with client to mitigate damages. The method of response included the following: (1) cooperation with ICE in apprehending several employees found to be unlawfully present in the United States, (2) defining an I-9 Compliance Policy to be included in Client's procedures manual, and, (3) defining and implementing a strategic I-9 Compliance Plan "Compliance Plan."
Because it was impossible to correct mistakes made prior to the investigation, client focused all energies on the enforcement of their newly created Compliance Plan. Key to the Compliance Plan was conducting in depth I-9 training for administrative staff and store general managers. After training were completed, Mr. Branch and client's Human Resources Director went to each store location to assure that I-9 Forms were completed correctly for each employee.
In May of 2008, client was notified by ICE that they had concluded their investigation and would not fine client based on their cooperation in apprehending several employees found to be unlawfully present in the United States and client's extraordinary efforts at I-9 Compliance.