February 29, 2008

The Justice Department and the Department of Homeland Security (DHS) announced last week that civil fines against employers that violate federal immigration laws will rise by about 25 percent in March, including a $5,000 maximum increase for multiple violations, as the agencies unveiled additional plans to cut down on the hiring of illegal aliens. DHS has intensified raids on companies in the past three years, prosecuting executives on criminal charges and arresting workers, who often use valid Social Security numbers, for identity theft.

Homeland Security Secretary Michael Chertoff said DHS also plans to issue a rule requiring federal contractors to participate in the currently voluntary E-Verify employment eligibility system, and expects to release a new "no-match" rule dealing with Social Security numbers.  Secretary Chertoff noted that the administration was acting to fill the vacuum left by Congress and fixes were needed to deal with illegal immigration and to improve the system through which people enter the U.S. legally.

Under the Immigration and Nationality Act, employers who violate employment eligibility requirements are subject to civil monetary penalties. Employers may be fined under the act for knowingly employing unauthorized aliens or for other violations, including failure to comply with the requirements relating to employment eligibility verification forms, wrongful discrimination against job applicants or employees on the basis of nationality or citizenship, and immigration-related document fraud, according to the departments. For each of these violations, the employer has the right to a hearing before an administrative law judge in the Justice Department's Executive Office for Immigration Review.

Under the new fine regime, the maximum civil penalty for multiple violations will rise from $11,000 to $16,000. Some of the higher civil penalties for a first violation will increase by $1,000.  The new rule will take effect March 27, 2008 and was published in the Federal Register on February 26.  A copy of the rule is available at the following website:   http://frwebgate3.access.gpo.gov/cgibin/waisgate.cgi?WAISdocID=14337220523+1+0+0&WAISaction=retrieve

For additional information, contact Alicia Oman in the NADCA Washington Office (202-898-1444 or ao@wafed.com).