While the controversy about the new Arizona Immigration Law, SB 1070, rages around the country, employers should not lose track of the fact the federal government is cracking down on companies who hire illegal immigrants or undocumented workers. Argue the issue any way you like, but at the end of the day those caught hiring undocumented workers are facing heavy fines and possible business closure.
If you are a business that contracts with the federal and different state governments or companies who in turn contract with federal and state governments, than it has been mandated since the first of the year that you must conduct the E-Verify or I-9 search on any new hire. The E-Verify Background Check or I-9, of course, will reveal whether your potential employee is eligible to work legally in the United States. This employers who do not conduct the I-9 can find themselves losing valuable government contracts. No joke, for sure.
Additionally, be aware that the Internal Revenue Service, is also getting into the act. Not only can you as an employer be fined and your business closed down, the IRS may look to see if you withheld paying your fair share of employee taxes. If the IRS deems there was criminal deception than the company principles face prison and extensive fines for past due taxes. There was one recent case where the courts upheld a ten year prison sentence and millions of dollars in fines.
Employers who conduct background checks as part of their preemployment screening will typically run the Social Security Trace to verify their candidate’s eligibility and to be sure that candidate is working under their actual social security number. If you believe that everyone works under their own social security number, best to think again.
According to an article in the Los Angeles Times, the French Gourmet, in San Diego, California, was recently cited for hiring undocumented workers. He is accused of ignoring the fact that the social security numbers his employees provided where either bogus or had initially belonged to someone else. We shall see the outcome. But bear in mind, this is an upscale restaurant, and not some little greasy spoon. Still, its owner, Michel Malecot, has been indicted and if convicted, faces fines of $250,000 per count and five years in prison, per count. If he is convicted, this may be a long time between pastries.
There are other restaurants and restaurant chains that have been turned into examples as to why it is best not to hire undocumented workers. American Apparel, the clothing manufacturer, was recently forced to layoff some 1,500 workers because of alleged discrepancies in their documentation. I blogged about this in one article, entitled, Immigration Woes Strike American Apparel Workforce.
Essentially, the government is making it more costly to hire undocumented workers than those eligible for employment. If your employees lack the proper documentation, then they can cost you. Big time. In this particular climate, the public exposure and subsequent embarrassment, the probable fines, and possible prison sentences may longer be worth the few bucks the employer saves. Keep it in mind.
And check them out before you hire.
