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Using "Illegal" Subcontractors Makes You a Target for Prosecution

Of all the employment issues we advise our clients on, the subject of proper hiring practices is becoming more and more critical. Just the other day in Des Moines, Iowa, 390 people were arrested for immigration violations at a meatpacking plant. According to ICE (US Immigration and Customs Enforcement) this was the largest workplace raid in US history. The Associated Press reports that the raid was aimed at seeking evidence of identity theft, stolen Social Security numbers, and people who are in the country illegally.

While the politicians wrestle with what to do about illegal immigrants, Homeland Security has announced a "comprehensive immigration enforcement strategy for the nation's interior." In 2007 alone ICE "dramatically increased penalties against employers whose hiring processes violate the law, securing fines and judgments of more than $30 million while making 863 criminal arrests and 4,077 administrative arrests." According to Julie Myers, head of ICE, "ICE has no tolerance for corporate officers who harbor illegal aliens for their work force."

OK. I can hear you saying, "I don't hire illegal aliens! So why should this matter to me or my company?" While it is obvious that hiring employees who are in the country illegally is a crime, you may not know that using illegal subcontractors can also subject you to the same punishment.

YOU BETTER KNOW WHO YOUR SUBCONTRACTORS ARE!

As you may know, Walmart was just was recently fined $11 million dollars for using subcontractors that had hired illegals. Why? Because it is alleged that a few Walmart managers knew that some of the subs were not here legally. If someone in your company's management knowingly hires a subcontractor who uses illegals, your company will be subject to civil penalties. Furthermore, you will probably end up getting really bad press!

CAN YOU SAY RACIAL PROFILING?

Because law enforcement hates to be accused of racial profiling, I can almost guarantee that at some point, a few businesses who have never hired anyone outside of a 5 mile radius will still be investigated. How will they investigate? Almost certainly someone will be sent to your company to peruse your I-9 forms. Because an employee must place his social security number on an I-9 form, examining these forms allows ICE to see if any of your employees are using a false social security number. A smoking gun.

CHECK YOUR EMPLOYMENT FILES - NOW!

Current law requires that all employees correctly and fully complete an I-9 form upon being hired. Not retaining forms or not having forms completed correctly can subject your business to fines. If you've ever needed some "encouragement" to double check your files, NOW IS THE TIME TO GET YOUR RECORDS IN ORDER.

BUT I DON'T COLLECT I-9 FORMS FROM MY SUBCONTRACTORS

Most companies don't because they're not required to. However, in light of the Walmart case, best practices may dictate that you start. If ICE ever does investigate your company, you can show that not only do you not hire illegal aliens; you go the extra mile to make sure your subs are not illegal either.

As the stepped up law enforcement surrounding this issue shows, it's not going to go away any time soon. Therefore, our duty as risk managers and insurance agents is to keep our clients informed about these types of developments so we can help protect them from all of the risks they face.

Article Source: http://article-kingdom.co.uk

Eric D. Patrick, is an attorney and Chief Operating Officer of Consumers Insurance Agency Inc. www.consumers-insurance.com . He also engages in insurance consulting and legal work through The RiskAssure Consulting Group. Please contact him for further information.

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