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You are here: Home / Claim Management / Fight Workers Comp Fraud & Abuse / Workers Comp Cost Impact of Hiring Illegal Workers

Workers Comp Cost Impact of Hiring Illegal Workers

September 9, 2009 By //  by Robert Elliott, J.D. Leave a Comment

Case One: Employer May Lose 30% of Employees
Following an investigation by U.S. Immigration and Customs Enforcement (ICE), a clothing maker announced plans to lay off around one-fourth of its factory workers in Los Angeles.

The employer, employing mostly Hispanic immigrants, was notified by ICE that 1,600 of its reported 5,600 factory workers could be illegal immigrants.

Officials said the company may face thousands of dollars in fines if it is determined that illegal workers were knowingly brought on by the company.

The fines could top more than $800 per person, according to government regulations.

Case Two: E-Verify: Confirms Immigration Worker Status
Employers doing business with the federal are now required to use a new federal system designed to discover employees without authorization to work in the United States, i.e., undocumented workers. The new rule includes employers who obtain American Recovery and Reinvestment Act funds, as part of the stimulus package.

E-Verify is the system federal contractors and subcontractors are now required to use permitting employers to screen the validity of a new hire’s Social Security number and other Form I-9 information, like a name. Employers are also required to use E-Verify to confirm current hires, and all new employees, whether employed on a federal contract or not and have 30 days following the contract to enroll.

More than 145,000 participating employers at nearly 550,000 worksites nationwide currently use E-Verify to electronically verify their workers’ employment eligibility. Since October 1, 2008, more than 7.6 million employment verification queries were run through the system and approximately 97% of all queries are now automatically confirmed as work-authorized within 24 hours or less. (workersxzcompxzkit)

More information on the program is available on the “E-Verify” Web site
http://dhs.gov/e-verify.

Author Robert Elliott, executive vice president, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce workmans compensation costs, including airlines, health care, manufacturing, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. He can be contacted at: Robert_Elliott@ReduceYourWorkersComp.com or 860-786-8286.

We are accepting short articles* (300-600 words) on WC cost containment. Non-salesy, written from employer’s viewpoint. To: Info@WorkersCompKit.com. *Non-compensable.

WC IQ Test: http://www.workerscompkit.com/intro/
WC Books: http://www.reduceyourworkerscomp.com/workers-comp-books-manuals.php
WC Calculator: www.reduceyourworkerscomp.com/calculator.php

Return to Work in Unionized Companies

http://reduceyourworkerscomp.com//Return-to-Work-Programs-Unionized-Companies.php

Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker about workers’ comp issues.

©2008 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@WorkersCompKit.com

Filed Under: Fight Workers Comp Fraud & Abuse, Litigation Management Tagged With: Illegal Workers and Workers Compensation, Legal Issues: Employers & Employees

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