Immigration and Customs Enforcement (ICE) reached the largest I-9 fine settlement in US history with clothier Abercrombie & Fitch on September 28, 2010.  The total settlement was $1,047,110 and resulted from paperwork and systems violations in the I-9 process and was not the result of ICE finding a single knowing hire of an alien unauthorized to work in the United States.

"This settlement should serve as a warning to other companies that may not yet take the employment verification process seriously," Moskowitz said.

The government's press release confirmed that Abercrombie was not found to have employed any unauthorized workers.  The audit uncovered "numerous" technology-related deficiencies in Abercrombie & Fitch's electronic I-9 verification system.  The government's press release did not reveal which third-party software Abercrombie was using, but we can expect that a lawsuit may follow seeking indemnification.

ICE found the violations during a November 2008 audit and inspection of Abercrombie & Fitch stores in Michigan.  Employers are required to complete and retain a Form I-9 for each person they hire.  The form requires employers to inspect and record the new hire's identity and employment eligibility documents and determine whether those documents reasonably appear to be the new hire's and genuine.

"We are pleased to see Abercrombie working diligently to complete the implementation of an effective compliance system; however, we know that there are other companies who are not doing so," said Brian M. Moskowitz, an ICE Special Agent.

Although Abercrombie & Fitch is a large company, the audit only concerned stores in Michigan.  Employers should carefully notice that paperwork and systems violations risk serious liability.  The settlement's size is stunning considering that Abercrombie & Fitch did not employ any unauthorized workers.

Sean Olender provides I-9 audits, consulting and online software through a third-party software vendor that can allow you and all of your HR assets nationwide to manage I-9 compliance and documentation in a single location for a very reasonable price.  The time savings alone pays rich dividends.  Contact us to learn more.