{"id":562,"date":"2017-06-13T15:18:55","date_gmt":"2017-06-13T15:18:55","guid":{"rendered":"http:\/\/www.hrdirectapps.com\/blog\/?p=562"},"modified":"2019-06-11T14:53:11","modified_gmt":"2019-06-11T14:53:11","slug":"2-common-i-9-compliance-myths-that-can-harm-your-small-business","status":"publish","type":"post","link":"https:\/\/www.hrdirectapps.com\/blog\/2-common-i-9-compliance-myths-that-can-harm-your-small-business\/","title":{"rendered":"Essential I-9 Compliance Facts for Small Business Owners"},"content":{"rendered":"

This article was last updated on 6\/7\/2019.<\/em><\/p>\r\n\r\n

If you\u2019re a small business owner, you already know that the mandatory Form I-9 is tricky to complete. The I-9 is necessary to verify an individual\u2019s right to work in the USA \u2014 and requires a careful review of specific types of identification within three days of an employee\u2019s start date.<\/p>\r\n\r\n

But does the time element really matter? Who\u2019s going to check? Would the U.S. Immigration and Customs Enforcement (ICE)<\/a> really target small businesses that never make waves and slap them with costly fines?<\/p>\r\n\r\n

There are a lot of misconceptions surrounding I-9 paperwork. Let\u2019s take a closer look at two of the biggest, so you don\u2019t put your business at risk:<\/p>\r\n

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A rising share of unauthorized immigrants arrive legally, but overstay visas, according to the Pew Research Center<\/a>.<\/div>\r\n<\/div>\r\n

Myth No. 1: I-9 Deadlines Are Optional<\/h2><\/p>\r\n

When it comes to the I-9, the devil is in the details. Employers who don\u2019t pay attention to how and when the form is completed may face penalties for mistakes that could have been avoided.<\/p>\r\n\r\n

Time matters. The three-day rule<\/a> is inflexible. If an employee doesn\u2019t produce the proper identifying documents within the three-day deadline, the employee should be terminated. Immediately.<\/p>\r\n\r\n

Backdating the I-9 isn\u2019t a solution either. It\u2019s illegal, and if discovered, carries a hefty penalty for fraud.<\/p>\r\n\r\n

It\u2019s critically important that the I-9 be completed on time \u2014 with the employee submitting all supporting documents \u2014 for one key reason: It legally verifies that an individual has the right to work in the USA.<\/p>\r\n\r\n

Without it, questions about a worker\u2019s legal authorization could arise. And if ICE agents choose to investigate, they could conclude that you knowingly hired illegal workers, leaving you open to criminal prosecution.<\/p>\r\n\r\n

In fact, falsifying I-9 documents is among the worst actions an employer can take when hiring. In February 2015, an immigration judge fined a California-based manufacturer $12,000 for not timely preparing I-9 forms for 18 employees. Liberty Packaging \u2014 a very small business \u2014 was penalized for acting in bad faith<\/a> by backdating the forms after a notice of inspection from the government.<\/p>\r\n

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Most illegal immigrants in the United States reside in 20 major cities<\/a>, with New York, Los Angeles and Houston topping the list.<\/div>\r\n<\/div>\r\n

Myth No. 2: I-9 Penalties Are Negligible<\/h2><\/p>\r\n

In the Liberty Packaging case, ICE sought the maximum baseline penalty for each violation, plus additional fines for acting in bad faith, the seriousness of the violations and the presence of unauthorized workers. The judge fined the company $650 per violation.<\/p>\r\n\r\n

Inspections could include workforce site raids to detain and arrest undocumented workers, as well as an I-9 audit, also known as a \u201csilent raid.\u201d<\/p>\r\n\r\n

Fines vary, depending on the nature of the offense. A \u201cUncorrected Technical\u201d issues, such as an employee not entering his or her birth date, address or date of hire or \u201csubstantive\u201d failures<\/a> \u2014 which include an employee failing to sign the form or an employer not checking personal identification documents can result in fines ranging from $230 to $2,292 per violation, although such fines are rarely levied.<\/p>\r\n\r\n

A violation if an employer knowingly hires or continues to employ an unauthorized alien, the fines range from $573 – $22,927.<\/p>\r\n\r\n

Worst still, if you engage in a pattern of hiring unauthorized individuals, you could face criminal penalties of $3,000 per individual and six months in prison.<\/p>\r\n\r\n

Something else to keep in mind: ICE assesses penalties per form, so depending on the number of forms and violations per form, the total could be significant.<\/p>\r\n\r\n

The message here is clear: Compliance with I-9 standards is mandatory for small and large businesses \u2014 and inspections are possible for companies of any size. If you don\u2019t comply, you\u2019ll pay.<\/p>\r\n

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Carelessness can cost BIG money when it comes to the I-9. A judge in April 2016 fined Golden Employment Group, Inc.<\/a> $210,000 for more than 400 incidents of not properly filing I-9 work authorization forms.<\/div>\r\n<\/div>\r\n

Tips for I-9 Compliance<\/h3><\/p>\r\n

To avoid compliance issues:<\/p>\r\n