OCAHO Cuts I-9 Fine in Half: USA v. Holtsville

"Count I of the Complaint alleges that the company hired twenty-seven individuals for whom it failed to prepare and/or present Employment Eligibility Verification Forms (Forms I-9) and assesses a fine of $26,554. Count II of the Complaint alleges that the company failed to ensure proper completion of the Forms I-9 for eight individuals and assesses a fine of $7,854. In total, the government’s assessed fine is $34,408. ... 

... Similar to the analysis in Red Bowl and Metropolitan Warehouse, Inc., and consistent with the SBREFA, I find that the penalty in the instant case should be reduced in the exercise of discretion. Penalty adjustment to the midrange of permissible penalties is warranted due to the number of favorable factors considered, including the small size of the business, the good faith of the employer, the fact that no unauthorized aliens were found to have been hired, the fact that there is no history of prior violations, the general public policy toward leniency to small business entities, and Holtsville’s alleged reduced ability to pay the proposed fine. Accordingly, I find that in the exercise of discretion, the proposed penalty in this case should be reduced to the midrange of permissible penalties from a total penalty originally assessed at $34,408 to a total penalty of $15,450, based on the following calculation: (1) $500 per violation for failing to prepare and/or present two Forms I-9 as set forth in paragraphs 2(c) of complainant’s Prehearing Statement; (2) $450 per violation for failing to timely prepare twenty-five Forms I-9 as set forth in paragraphs 2(d), 2(e), and 2(f) of complainant’s Prehearing Statement; and (3) $400 per violation for substantive paperwork violations for eight employee’s Forms I-9 as set forth in paragraph 2(g) of complainant’s Prehearing Statement. Consistent with the findings in Keegan Variety, LLC, Red Bowl and Mr. Mike’s Pizza, Holtsville’s small business is the type of business that should benefit from penalty mitigation and the general public policy of leniency to small entities set out in the SBREFA."

- USA v. Holtsville, 9-8-15.