For businesses operating in the United States, immigration and business compliance begin long before a government audit, a worksite inspection, or, worse, an ICE raid. As we have seen in the Metro Phoenix Area, ICE is ramping up its actions against business owners, as in the case of the 15 Zipps Sports Grill that were raided this week.
Years ago, these instances were rare, but the current administration is making a point of using all its force.
One of the most effective ways to reduce legal risk is by establishing strong human resources practices that align with federal employment and immigration laws. At the core of this effort is a clear understanding of the difference between employees and independent contractors, and the responsibilities that apply to each.
Employees vs. Independent Contractors: Why the Distinction Matters
Misclassifying workers is a common—and costly—mistake. Employees are generally subject to the employer’s control over time, location, and manner of work, whereas independent contractors operate with greater autonomy. Immigration compliance obligations, such as Form I-9 verification, apply only to employees, not independent contractors. However, knowingly or willfully misclassifying workers to avoid compliance can expose a business to significant penalties.
The key takeaway for employers is this: classification decisions should be made carefully, adequately documented, and regularly reviewed.
I-9 Compliance: A Foundational Employer Obligation
For every employee hired in the United States, employers must complete Form I-9 to verify identity and work authorization. Click here for the I-9 form (Employment Eligibility Verification) from USCIS.
Best practices for the administration of the Employment Eligibility form include:
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Completing Form I-9 accurately and on time
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Submitting the I-9 information within three business days of the employee’s start work date to the E-Verify platform
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Maintaining I-9 records separately from general personnel files, either electronically or in hard copy
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Keeping only what is required—do not retain extra documentation beyond what the I-9 process mandates.
Employers should never provide additional personnel records to government authorities unless a subpoena explicitly requests such records.
Confidentiality Is Not Optional
Immigration-related information is sensitive and must be handled with care. Employers should enforce strict confidentiality policies and ensure that:
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Legal status is not discussed casually or disclosed internally without a legitimate business need.
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Managers and HR personnel avoid gossip or informal conversations about an employee’s immigration situation.
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Access to I-9 files is limited to authorized personnel only
Failure to maintain confidentiality can lead not only to legal exposure but also to workplace morale issues and potential discrimination claims.
Immigration and Business: Audits and Ongoing Compliance
Immigration compliance is not a one-time task. Employers are strongly encouraged to audit their I-9 files periodically, correct technical errors where permitted, and maintain records of when audits were conducted. Regular audits demonstrate good-faith compliance efforts and can mitigate penalties during a government investigation.
Two words frequently appear in business and immigration actions: “knowingly” and “willingly.” Employers who knowingly or willingly violate immigration laws—whether by ignoring red flags, failing to complete required forms, or continuing to employ unauthorized workers—face heightened penalties.
A Proactive Approach Protects Your Business
Strong HR and immigration compliance practices protect businesses from fines, disruptions, and reputational harm. More importantly, they create a structured, fair, and lawful workplace environment. By understanding employee classification, maintaining proper I-9 and E-Verify procedures, safeguarding confidentiality, and conducting regular audits, employers place themselves in a stronger position to navigate today’s complex immigration landscape.
Immigration compliance is not just a legal obligation—it is a critical component of responsible business operations.
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Marcos Law had prepared an information package to educate the business community about immigration issues, updated to reflect the latest developments.
Please email us at info@marcos-law.com to request the package.
Marcos E. Garciaacosta, Esq., is a business, intellectual property, and immigration attorney working in the Phoenix Metro area and globally. Please visit our website marcos-law.com