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Immigration Reform and Control Act
The Immigration Reform and Control Act (IRCA) of 1986 came into effect to prevent illegal or undocumented immigrants from being hired for work in the United States. Employers who break this federal law by consciously employing people not authorized to be in the country face civil or criminal charges, including a fine. The IRCA introduces the legal requirements that employers use to verify whether employees are eligible to work in the country.
Senator Alan Simpson created the federal law, which is why it is also known as the Simpson-Mazzoli Act, which Ronald Reagan signed in November of 1986. This led to regulations, such as lawful permanent residence (LPR), which legalized immigrants who arrived in the country before 1982. Additional provisions included the I-9 form that employers had to complete and proof of eligibility when hiring foreign employees. The Reform and Control Act further led to the H-2A and H-2B visas to make it legal for temporarily hired farm and non-agricultural employees to work in the U.S.
Impact of IRCA on Employers
Employers will face penalties, including fines and criminal charges if they are aware that they’re hiring undocumented and illegal immigrants. Employers in the United States have the following responsibilities:
1. Employer Obligations for Verifying Work Eligibility
An employer must complete Form I-9 to verify the identity of employees and the eligibility of individuals for employment in the States, whether a citizen or a non-citizen. Every employee who is hired must have their identity documents verified and complete Form I-9.
2. Penalties for Non-Compliance
Employers who knowingly hire immigrants without legal status in the USA will pay a fee of $3000 for each unauthorized and employed individual, or they will be imprisoned for up to 6 months. Some employers will be fined and face imprisonment.
Challenges in Complying with IRCA
The IRCA is meant to protect employers’ and employees’ interests and rights. Still, some individuals and companies face challenges when it comes to compliance in the following ways:
1. Managing I-9 Forms and Record-Keeping
Teams responsible for managing I-9 verification must be trained to understand the regulations associated with the document to ensure its accurate completion.
Employers must remain updated on regulations concerning the I-9 process, as compliance requirements are constantly changing.
Record-keeping is a necessary part of I-9 compliance, as it can protect the interests and rights of employers and foreign workers. Employees must provide confidential information such as proof of permanent residency, a U.S. passport, or a U.S. identity card if they do not have permanent residence. Based on federal requirements, these records must be stored and kept for three years.
This team should be responsible for inspecting the original documents before submitting the I-9 Form, as inconsistencies will result in a penalty. Teams can conduct audits in which I-9 paperwork is reviewed and any mistakes rectified to prevent the risk of non-compliance.
2. Avoiding Discrimination While Ensuring Compliance
Processing I-9 Forms should be a consistent and uniform practice to avoid the possibility of discrimination in the workplace. Standardizing the steps to complete the I-9 Form while adhering to federal regulations will support fairness and equal treatment of all employees. Consistency in the hiring process will prevent the possibility of mistakes and legal issues.
Best Practices for IRCA Compliance
To avoid inaccuracies, discrimination, and poor compliance, employers can incorporate the following best practices:
1. Training and Educating HR Staff
The best strategy to stay on top of your IRCA compliance is to select, train, and educate HR staff on processing documents as per regulatory requirements. A dedicated and professional team can obtain employee information and documentation and complete the Form I-9 per federal law.
2. Using Technology to Manage Compliance
The Basic Pilot program was launched by the Illegal Immigration Reform and Immigrant Responsibility Act (IIRIRA) to help employers verify employment eligibility by comparing information in a federal database. This includes the integration of software that will guide you through the completion of the I-9 Form, which reduces errors and supports the onboarding process.
Conclusion
The IRCA was passed in 1986 to regulate illegal workers in the United States and to hold employers accountable for hiring unauthorized employees. This federal law gave rise to provisions including the I-9 Form that must be completed to verify an employee’s identity and ensure that they are eligible to work in the U.S. Today, employers are encouraged to assign a trained team and incorporate technology to adhere to the IRCA requirements and prevent inaccuracies when completing documentation. Employers must remain updated on IRCA regulations that are constantly changing to avoid issues of non-compliance and the associated penalties.
FAQ
The Immigration Reform and Control Act (1986) requires that employers verify an employee's work status by inspecting documents such as passports, identity documents, or social security cards. An employee must provide proof that they are a U.S. citizen or authorized immigrant, and the employer must store these documents for at least three years in the case of a referral or hire.
Employers can ensure compliance with the IRCA by dedicating an experienced and trained team to process the relevant information and documents. The team should be responsible for record-keeping and verifying employees' identity documents to avoid penalties. In addition to relying on a skilled team to manage I-9 and IRCA requirements, employers are encouraged to streamline the completion of documents such as the I-9 using HR software. These steps make it simpler for employers to remain compliant with IRCA regulations.
