Obama Eases Penalties for Businesses Hiring Illegal Immigrants

Washington Times

By Stephen Dinan

February 26, 2014

http://www.washingtontimes.com/news/2014/feb/25/obama-eases-penalties-for-businesses-hiring-illega/

The Obama administration regularly cuts a break for businesses that hire illegal immigrants, reducing their fines by an average of 40 percent from what they should be, according to an audit released Tuesday that suggests the government could be doing more to go after unscrupulous employers.

According to the audit, conducted by the Homeland Security Department’s inspector general, U.S. Immigration and Customs Enforcement cut one business’s fine from $4.9 million to slightly more than $1 million — a 78 percent drop.

Investigators said the reduction is legal, but it may be undercutting the administration’s goal of getting tough on businesses that hire illegal immigrants.

“The knowledge that fines can be significantly reduced may diminish the effectiveness of fines as a deterrent to hiring unauthorized workers,” the inspector general said.

The report was released the same day that a coalition of business groups wrote a letter to House Speaker John A. Boehner, Ohio Republican, asking him to pass an immigration bill this year. The business groups said they supported Mr. Boehner’s list of immigration principles, which would give businesses a new supply of legal guest workers while granting legal status to most illegal immigrants already in the U.S.

While most of the attention in the immigration debate goes to illegal immigrants themselves, analysts say the problem would be much smaller if businesses would abide by employment laws.

Under President Obama, the federal government was supposed to be putting more of an emphasis on going after employers. ICE specifically announced that it would conduct more audits of the I-9 forms all businesses are required to keep demonstrating that their employees are authorized to work in the U.S.

The goal was to try to ramp up pressure on businesses to hire legal workers.

Jessica Vaughan, director of policy studies at the Center for Immigration Studies, said Mr. Obama has talked a good game but hasn’t followed through.

“This audit confirms what I’ve found in reviewing ICE audit records obtained through FOIA,” Ms. Vaughan said in an email. “Some field offices are conducting worksite enforcement (albeit on a tight leash) as if they actually mean to deter and punish illegal employment. Others do not take it seriously and are just going through the motions. Their goal is to rack up enough audits so that the administration can use the numbers to claim that it is vigorously enforcing the law.”

The inspector general’s report said ICE submitted notices totaling fines of more than $52.7 million from 2009 through 2012, but ended up charging only $31.2 million — for a 40 percent break for businesses.

It still marks a huge increase over the Bush administration, which imposed just $1.5 million in fines from 2003-2008.

Investigators said the agency is allowed to reduce fines if it seems the businesses’ finances can’t handle a large penalty.

Investigators said overall, ICE showed little consistency in how it applied sanctions. Some field offices gave out far more warnings and far fewer fines than other offices.

All businesses are required to store the I-9 forms submitted by employees that show their legal work status.

Analysts say the I-9 paper-based process is easy to defraud. All sides agree that an electronic system would be better — though many businesses balk at adopting electronic verification without first changing the rest of the immigration system.

In its official reply to the report, ICE didn’t address the issue of reduced fines.

The agency said it has tried to be consistent overall with how it goes after employers with warnings and fines and that the differences among field offices are caused by a number of factors.

The agency said it even went back and reviewed some cases to see whether a fine or warning was the right response and that it found the initial decisions were usually correct.

The agency did agree to strive for more consistency in its reporting of information.

Businesses have been an afterthought in much of the immigration debate, which has focused on the estimated 11 million to 12 million illegal immigrants now in the country and whether they should be given a pathway to citizenship.

Business groups say passing a legalization bill is important because it would give them a more certain workforce and would likely increase legal immigration channels, which would mean more workers.

“Failure to act is not an option,” a coalition of 636 business organizations said in their letter to Mr. Boehner on Tuesday. “We cannot afford to be content and watch a dysfunctional immigration system work against our overall national interest. In short, immigration reform is an essential element of a jobs agenda and economic growth. It will add talent, innovation, investment, products, businesses, jobs, and dynamism to our economy.”

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