Hospitality Industry Legal Risks: Immigration And Customs Enforcement (ICE) Employment Audits Targeted Restaurants (38%) In 2012; “Silent Raids” Force Workers To Lose Jobs, Large Fines For “Paperwork Errors”

“The administration appears to start with the presumption that employers are not telling the truth about their listed employees…”

U.S. Immigration and Customs Enforcement“…(an Ohio) restaurant was audited in early 2012. No undocumented workers were found…but paperwork errors resulted in a $27,500 fine, which didn’t get reduced. The company paid another $7,500 to have an immigration attorney handle the case and review the I-9 forms of the other 13 restaurants to make sure they were filled out correctly…”

“In late 2010, (a national restaurant) chain lost about 450 Minnesota workers, between 30% and 40% of its employees there…Last year, the burrito chain announced it was under federal investigation over possible criminal securities law violations related to communications to investors of work-authorization compliance. The company has said it is cooperating fully with the investigation…”

The U.S. government has launched a fresh crackdown on employers suspected of hiring illegal immigrants by notifying about 1,000 businesses across the country in recent weeks they must submit documents for audits. The so-called “silent raids” are the largest since July 2009 when just as many companies were notified, according to immigration attorneys, and weren’t publicly disclosed by Immigration and Customs Enforcement, the agency that conducts such inspections.

While the audits don’t lead to the deportation of a firm’s illegal workers, they lose their jobs if discovered. Critics of the crackdown say it drives more immigrants to eploitative, off-the-books work. For employers, the audits can lead to deep losses in productivity, in addition to civil and criminal fines, and many workers end up getting hired by competitors.

For more:  http://online.wsj.com/article/SB10001424127887324755104579071331936331534.html

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