Recent news involving two popular clothing retailers demonstrate how imperfect I-9 Forms may lead to million dollar fines and securities fraud lawusites.  

Abercrombie and Fitch:

The popular closing relaier was fined $1,000,000 as a result of the Immigration and Custom Enforcement (ICE)  I-9 investigation in June of 2010.  Why this important: the emploeyr did not have a single unauthorized worker, they were fined for imperfect Forms I-9.

American Apparel:

Investors sued the company for securities fraud.  Investors allege that American Apparel terminated 1/3 of its workforce as a result of an ICE investigation and that the company failed to warn investors timely of negative consequences of the labor loss.  Why this is an important case: When ICE made American Apparel lay off 1,600 unauthorized workers in September 2009, the company did not suffer any criminal or major civil consequences for immigration non-compliance, they thought the issue was closed.  But the immigration issue raised its head again in this securities fraud suit.

Posted by Mira Mdivani
Corporate Immigration Attorney

Corporate Immigration Compliance Training