Penalties for Knowingly Hire / Continuing to Employ Violations:

Employers determined to have knowingly hired or continuing to employ violations shall be required to cease the unlawful activity and may be fined.  The agent or auditor will divide the number of knowing hire and continuing to employ violations by the number of employees for which a Form I-9 should have been prepared to obtain a violation percentage.  This percentage provides a base fine amount depending on whether this is a First Tier (1st time violator), Second Tier (2nd time violator) or Third Tier (3rd or subsequent time violator) case. The standard fine amount listed in the table relates to each knowing hire and continuing to employ violation. The range of the three tiers of penalty amounts is as follows:

 

 Violation Percentage Standard Fine Amount
Knowing Hire and Continuing to Employ Violations First Tier
$375 – $3,200
Second Tier
$3,200 – $6,500
Third Tier
$4,300 – $16,000
0% – 9% $375 $3,200 $4,300
10% – 19% $845 $3,750 $6,250
20% – 29% $1,315 $4,300 $8,200
30% – 39% $1,785 $4,850 $10,150
40% – 49% $2,255 $5,400 $12,100
50% or more $2,725 $5,950 $14,050
Knowing Hire / Continuing to Employ Fine Schedule
(for violations occurring on or after 03/27/2008)

 

 

 Violation Percentage Standard Fine Amount
Knowing Hire and Continuing to Employ Violations First Tier
$275 – $2,200
Second Tier
$2,200 – $5,500
Third Tier
$3,300 – $11,000
0% – 9% $275 $2,200 $3,300
10% – 19% $600 $2,750 $4,600
20% – 29% $925 $3,300 $5,900
30% – 39% $1,250 $3,850 $7,200
40% – 49% $1,575 $4,400 $8,500
50% or more $1,900 $4,950 $9,800
Knowing Hire / Continuing to Employ Fine Schedule
(for violations occurring between 09/29/1999 and 03/27/2008)

 

Since the passage of IRCA (Immigration Reform and Control Act) in 1986, federal civil monetary penalties have been increased on two occasions in 1999 and 2008 pursuant to the Federal Civil Penalties Inflation Act of 1990, as amended by the Debt Collection Improvement Act of 1996. These adjustments are designed to account for inflation in the calculation of civil monetary penalties and are determined by a non-discretionary, statutory formula.

 

Penalties for Substantive and Uncorrected Technical Violations:

The agent or auditor will divide the number of violations by the number of employees for which a Form I-9 should have been prepared to obtain a violation percentage. This percentage provides a base fine amount depending on whether this is a first offense, second offense, or a third or more offense. The standard fine amount listed in the table relates to each Form I-9 with violations. The range of the three tiers penalty amounts are as follows:

 

 Violation Percentage Standard Fine Amount
Substantive Verification Violations 1st Offense
$110 – $1100
2nd Offense
$110 – $1100
3rd Offense +
$110 – $1100
0% – 9% $110 $550 $1,100
10% – 19% $275 $650 $1,100
20% – 29% $440 $750 $1,100
30% – 39% $605 $850 $1,100
40% – 49% $770 $950 $1,100
50% or more $935 $1,100 $1,100
Substantive / Uncorrected Technical Violation Fine Schedule

 Enhancement Matrix

The following matrix will be used to enhance or mitigate the recommended fine contained on the Notice of Intent to Fine.

 

Factor Aggravating Mitigating Neutral
Business size + 5% – 5% +/- 0%
Good faith  + 5%  – 5% +/- 0%
Seriousness + 5% – 5% +/- 0%
Unauthorized Aliens + 5% – 5% +/- 0%
History + 5% – 5% +/- 0%
Cumulative Adjustment + 25% – 25% +/- 0%
Enhancement Matrix