Updated: September 29, 2023
U.S. Immigration and Customs Enforcement (ICE) has intensified its investigations into American companies suspected of employing undocumented workers, reaching record levels in recent years. According to USA Today, ICE conducted more than 3,000 employer audits in a single fiscal year—an astonishing increase from just 250 audits in 2007. Between 2009 and 2012 alone, the total fines issued soared from $1 million to nearly $13 million, and the number of company managers arrested rose to 238, based on ICE data.
This aggressive enforcement strategy has become a cornerstone of the U.S. government’s immigration policy. During his administration, President Obama emphasized that comprehensive immigration reform must include penalties for employers who knowingly hire unauthorized workers. His message underscored a continued commitment to balancing reform with enforcement.
“Our goal is compliance and deterrence,” stated an ICE special agent in Seattle. “Most companies audited receive no fines at all, but the process itself encourages compliance. When employers know we’re conducting reviews nationwide, they are far more likely to follow the law.”
While federal officials point to these investigations as evidence of rigorous enforcement, critics argue that such audits often disrupt industries dependent on immigrant labor. Many businesses face sudden workforce losses, costly delays, and operational challenges after receiving ICE audit notifications.
For instance, Belco Forest Products in Washington State became one of hundreds of companies fined in 2011, paying $17,700 for paperwork errors. The company’s chief financial officer expressed frustration at what he described as an inconsistent enforcement approach: “Either everyone gets audited or no one does. The playing field should be level.”
Employers across the nation are legally required to complete Form I-9 for each employee, confirming their authorization to work in the United States. ICE audits, part of a $138-million worksite enforcement program, involve agents meticulously reviewing payroll and identity records for discrepancies—such as mismatched Social Security numbers or unverifiable identification documents.
Some policy experts have questioned the effectiveness of this system. Analysts at Washington-based think tanks note that relying solely on visual document verification places too much burden on employers. “You’re asking employers to make subjective judgments on the authenticity of documents,” one expert explained, “and then the government judges those judgments. It’s an inherently flawed process without a modern verification program.”
An Associated Press review revealed that ICE fines are often concentrated in industries that traditionally rely on manual labor and immigrant workers—such as construction, food packaging, janitorial services, and agriculture. In fiscal year 2011, fines ranged from as little as $90 for a Massachusetts fishing company to as high as $394,944 for a Minneapolis employment agency. Texas topped the list of states with the most penalized workplaces, followed by New Jersey.
Even well-known corporations have been subject to ICE scrutiny. Subsidiaries of major companies such as GE Aviation, Heinz, and franchise operations of Subway were among those audited. While some were fined modestly—GE paid $2,000—others faced more serious penalties for employing unauthorized workers or maintaining incomplete records. ICE has also prosecuted individual managers, including cases involving restaurant and staffing agency supervisors who knowingly hired undocumented employees.
ICE representatives maintain that audits are conducted based on various leads rather than specific targeting criteria. “We can audit any business, anywhere, regardless of size or industry,” one agent confirmed. The agency often receives tips from employees, competitors, and members of the public, while some audits occur at random.
Former ICE deputy director Julie Wood has advocated for reforming the process to reduce the compliance burden on employers. She recommends integrating the government’s E-Verify system with the existing I-9 process, allowing employers to confirm work eligibility electronically in real time. Immigration attorneys at Green Card Link similarly note that improved verification systems could promote fairness, reduce uncertainty, and help employers maintain compliance while minimizing costly disruptions.