Non-compliance & penalties
Understanding the consequences of I-9 violations
IMPORTANT TO NOTE
Individuals and businesses that violate laws associated with work authorization can be investigated for both criminal and administrative offenses that may result in incarceration, penalties, fines, deportations, and federal debarment.
Civil fines
Higher penalties for repeat violations
PAPERWORK VIOLATIONS
$281 - $2,789
Per violations
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Technical Violations
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Can be corrected if identified early
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Errors can accumulate quickly
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Could be multiple violations per Form I-9
KNOWINGLY HIRING UNAUTHORIZED WORKERS
$698 – $27,894
Fines
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Substantive Violations
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Incomplete Form I-9 information
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Unsigned forms
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Improper ID or work authorization
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Missed regulatory timelines
Criminal penalties
A pattern of willful violations could lead to larger fines, and possible jail time.
Violations which can be attributed to deliberate acts can lead to criminal prosecution. Deliberate acts basically fall into two categories:
Willful blindness
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Warning signs or suspicions existed
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Conscious decision not to investigate
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Avoided confirming legal compliance
Deliberate non-compliance
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Knew the law or regulatory requirement
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Took intentional steps to avoid compliance
Criminal investigations related to work authorization typically result in the execution of search warrants commonly referred to as “worksite enforcement raids”. Prosecution can expand from knowingly employing undocumented works, to money laundering, conspiracy, or even racketeering charges.
Additional consequences
Debarment
Government action excluding individuals or companies from participating in federal contracts, grants, and other programs. If your business has government contracts, debarment could significantly impact operations.
Reputational damage
Failed audits attract negative media attention, damaging your brand. Customers may view your business as unethical, particularly if it knowingly hired unauthorized workers.
Lost partnerships
Severe violations can result in loss of government contracts and damage relationships with business partners, clients, and investors who avoid association with non-compliant companies.
Talent challenges
Reputational damage makes it harder to recruit and retain quality talent. Potential employees may perceive the company as unstable or poorly managed.
Workforce instability
Aggressive enforcement actions can cause immediate disruption. Workers may stop showing up due to fear, leading to understaffing and operational disruptions.
Increased scrutiny
A history of violations leads to increased government monitoring and risk of more stringent future audits. For public companies, this can lead to shareholder lawsuits.
