October 12, 2010

Abercrombie & Fitch Fined Over $1 million for Electronic I-9 System Failures

Well-known clothing retailer Abercrombie & Fitch agreed to pay a $1,047,110 fine in a settlement with U.S. Immigration and Customs Enforcement (ICE). The settlement was reached as a result of a November 2008 Form I-9 inspection of Abercrombie’s Michigan stores which uncovered significant deficiencies in the management of the company’s Form I-9s.

ICE confirmed that no instances of knowing hires of unauthorized aliens were discovered in the audit, and the fine was based on the failure of the company’s electronic I-9 system to properly complete and maintain I-9 forms. This significant settlement should act as a reminder to all employers that I-9 compliance is about more than employing a legal workforce, and your company can be significantly liable for failure to properly adhere to the administrative I-9 process.

Employers should also remember that selection of an electronic I-9 system should be carefully considered to ensure compliance with immigration laws and regulations. Careful thought should go into making the decision whether to take the I-9 process paperless and due diligence should be conducted on the electronic vendor you are considering, as well as whether a particular product is right for your company Please contact Dawn Lurie for more information on this topic at luried@gtlaw.com.

A press release announcing the fine is available on the ICE website (link to: http://www.ice.gov/pi/nr/1009/100928detroit.htm).