Employers in the United States who hire undocumented immigrants could now face penalties of up to $5,724 per individual. The Department of Homeland Security (DHS) published a final rule in the Federal Register today, stating that U.S. Immigration and Customs Enforcement (ICE) is authorized to impose these penalties. This amount represents an increase from the previous maximum of $5,579.
Previously, civil penalties for knowingly hiring, recruiting, referring, or retaining unauthorized aliens ranged from $698 to $5,579. However, the revised penalties now range from $716 to $5,724 for first-time violations. Employers found in violation a second time may be penalized up to $14,308 per individual, while third-time offenders face penalties of up to $28,619 per person. These increased penalties aim to adjust for inflation.
ICE has also raised penalties for other violations. The updated penalties will take effect on January 2, 2025, and apply to violations occurring after November 2, 2015. While enforcement of such penalties was limited during the Biden administration, the new rules could have a significant impact on employers during the upcoming Trump administration.
During Trump’s first term, ICE intensified operations against businesses suspected of employing undocumented workers. In the first eight months of 2019, ICE issued 5,200 notices to employers for I-9 audits under a nationwide operation. Many businesses were raided, and some employers faced arrests.
Federal law mandates that employers verify the work eligibility of their employees in the U.S. The I-9 form is used for this verification process. Once notified by ICE, employers have three days to produce valid I-9 forms. Failure to comply can result in penalties and further legal action by ICE.