The landscape of immigration enforcement is shifting. Recent executive orders suggest increased federal efforts to ensure compliance with immigration laws. For business owners and insurance brokers working with small and mid-sized businesses, staying compliant with these regulations is critical. Understanding the Immigration Reform and Control Act of 1986 (IRCA) and Form I-9 requirements can help you protect your business and your clients from costly penalties.
Understanding the Law
The IRCA prohibits employers from knowingly hiring or continuing to employ individuals who are not authorized to work in the United States. It also mandates that employers verify employee work authorization while prohibiting discrimination based on national origin or citizenship status.
Who Is Authorized to Work in the U.S.?
Employers must ensure that employees fall under one of these categories:
- U.S. citizens
- Noncitizen nationals
- Lawful Permanent Residents (Green Card holders)
- Noncitizens authorized to work under an employment visa
Certain employment visas require employer sponsorship, and businesses must comply with all relevant documentation and authorization procedures.
Federal Enforcement Agencies
Several agencies oversee and enforce immigration laws, including:
- Department of Homeland Security (DHS)
- Immigration and Customs Enforcement (ICE)
- Homeland Security Investigations (HIS)
- Customs and Border Protection (CBP)
Employers should be aware of the different enforcement methods these agencies use and prepare accordingly.
ICE Raids: What Business Owners Should Expect
ICE may conduct worksite raids if they suspect undocumented individuals are employed. However, they can only enter private areas with a judicial warrant. Employers should have a plan in place, including:
- Designating a Point of Contact to handle interactions with ICE agents
- Reviewing the warrant carefully to determine its scope and legitimacy
- Contacting legal counsel before providing any documentation
-
Best Practices During an ICE Raid:
- Document all areas searched and items seized
- Gather agent names and contact information
- Record interactions if permitted
- Advise employees of their right to remain silent and seek legal counsel
- Maintain a list of present employees
ICE Audits: Responding to a Notice of Inspection
ICE may issue a Notice of Inspection to audit an employer’s Form I-9 records. Employers have three days to produce all requested documents.
Steps for Responding to an ICE Audit:
- Ensure Form I-9 compliance before an audit occurs
- Retain copies of all documents provided to ICE
- Do not allow access to company computers without legal counsel approval
- Consult an immigration attorney immediately upon receiving a notice
Proactive Compliance Strategies
Employers can mitigate risks by taking proactive compliance measures, including:
- Training HR Staff: Ensure that personnel responsible for Form I-9 completion understand verification timelines and compliance requirements.
- Conducting Internal Audits: Regularly reviewing Form I-9 records can identify and correct errors before an official audit.
- Implementing a Standardized Process: Establish clear policies for handling audits and worksite enforcement actions.
- Avoiding Discrimination: Employers must allow employees to provide any acceptable verification documents without demanding specific ones.
Why Insurance Brokers Should Care
For insurance brokers partnering with a PEO, understanding employment compliance risks can strengthen your value proposition to clients. Businesses that fail to comply with IRCA and Form I-9 regulations can face significant penalties, reputational damage, and workforce disruptions. By advising your clients on HR compliance solutions, you can help them mitigate risks while expanding your book of business.
Additional Resources