New penalties for illegal employment, other violations to take effect Monday

29 Jul 16

UNITED STATES

The Justice Department is set to increase the civil penalties for a number of immigration-related violations, including unlawful employment of aliens, paperwork violations and unfair employment practices. The new penalties will take effect Monday.

Key points:

  • Minimum penalties for first-time violations for unlawful employment of aliens will jump to $539 per individual from the current $375, while the minimum penalties for first-time paperwork violations (e.g., Form I-9 violations) will increase to $216 from the current $110. The minimum penalties for first-time violations for unfair immigration-related employment practices will increase to $445 from the current $375.
  • The penalties will apply to any violations committed after Nov. 2, 2015. The Justice Department published an interim final rule July 1 and the new penalties will take effect Monday.

Background: The rule was drafted pursuant to the Bipartisan Budget Act of 2015, which was signed into law Nov. 2 and altered the method for adjusting penalties for inflation. Minimum and maximum penalties will increase for a host of violations.

Violation Current Penalty Penalty Effective Aug. 1
Unlawful employment of aliens, first violation (per unauthorized individual) Min. $375 Min. $539
Max. $3,200 Max. $4,313
Unlawful employment of aliens, second violation (per unauthorized individual) Min. $3,200 Min. $4,313
Max. $6,500 Max. $10,781
Unlawful employment of aliens, subsequent violation (per unauthorized individual) Min. $4,300 Min. $6,469
Max. $16,000 Max. $21,563
Paperwork violation (per relevant individual) Min. $110 Min. $216
Max. $1,100 Max. $2,156
Unfair immigration-related employment practices, first violation (per individual) Min. $375 Min. $445
Max. $3,200 Max. $3,563
Unfair immigration-related employment practices, second violation (per individual) Min. $3,200 Min. $3,563
Max. $6,500 Max. $8,909
Unfair immigration-related employment practices, subsequent violation (per individual) Min. $4,300 Min. $5,345
Max. $16,000 Max. $17,816

The interim final rule, which includes a table of penalties for all immigration-related violations, can be read in the Federal Register.

BAL Analysis: The increase in penalties highlights the importance of remaining in compliance with all immigration-related laws and regulations. The new penalties will be imposed beginning Monday, but will apply to any violation that occurred after Nov. 2, 2015.

This alert has been provided by the BAL U.S. Practice group. For additional information, please contact BerryApplemanLeiden@balglobal.com.

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