ICE Audit + SEC Probe: A Double Whammy for Employers
What’s worse than an Immigration and Customs Enforcement investigation into your company’s hiring practices? An ICE Audit AND a Securities and Exchange Commission probe. From employment attorneys Jennifer Parser and David Woodard (at law firm Poyner Spruill):
“In 2010, ICE investigated Chipotle’s hiring practices in Minnesota by auditing its I-9 Forms and hiring practices. Following that audit, Chipotle terminated approximately 450 workers whose documentation proving identity and employment authorization were problematic. In 2011, ICE proceeded to audit Chipotle’s I-9s and hiring practices in other states, including Washington, D.C. Chipotle’s hiring practices in D.C. were referred by ICE to the US Attorney’s Criminal Division. Subsequently the SEC subpoenaed Chipotle’s headquarters requiring that it provide information regarding employees’ work authorization, related public statements and information. That investigation was ongoing at the release of this article…
Why has the SEC followed up on an ICE audit? Chipotle is a publicly traded company within the purview of the SEC. But this type of sequential activity most likely gained momentum because of joint investigations by ICE, the Department of Homeland Security, and the US Attorney’s office. While the SEC has a mandate to ensure that publicly traded companies adequately disclose risk to their investors, there are no express disclosure requirements under securities laws relating to immigration and employment. However, the requirement that a company adequately discloses risks would seem to include immigration and employment because of the potentially punishing repercussions associated with an ICE audit of and sanctions against the company. Legal fees, shareholders’ suits and bad public relations can further erode a company’s fiscal health and standing – associated exposure.”
Read the full update, The Importance of an I-9 Form - Immigration and Customs Enforcement Sanctions Followed by SEC Probe - Poyner Spruill LLP»
