What penalties does an employer face for Form I-9 violations?
Employers can face stiff penalties for IRCA violations that include substantial fines and debarment from government contracts. Penalties can be imposed for hiring unauthorized employees as well as simply for committing paperwork violations even if all employees are authorized to work. Fines for hiring unauthorized employees will amount to anywhere from $250 to $16,000 per employee depending on the prior history of violation. Employers can also be barred from competing for government contracts for a year if they knowingly hire or continue to employ unauthorized aliens. Paperwork violations can also result in significant fines. Each mistake or missing item on a form can result in a $110 penalty up to $1,100 for each form. A missing form would automatically be assessed at $1,000. An employer, for example, that had 100 employees and did not complete I-9 Forms might face a $100,000 fine. IRCA investigators have considerable discretion in assessing fines and will look at factors like the siz