Employers Beware: Hiring Undocumented Workers Can be MORE Costly for Your Business.

A San Diego business learned the hard way that cutting corners and illegally hiring undocumented workers can be financially ruinous after it was raided by U.S. Immigration and Customs Enforcement (ICE) agents. San Diego Powder & Protective Coatings is a local Southern California company that specializes in paint and coating and even had contracts for military and government vessels. This company was the subject of an undercover investigation and subsequent raid by ICE agents.

This company’s general manager John Washburn pled guilty to hiring at least 10 undocumented workers and for letting those same workers live in the company’s warehouse. As a result, Washburn was charged with engaging in a pattern or practice of employing aliens, pled guilty, and was subsequently sentenced to 1- year probation and required to complete 50 hours of community service. Likewise, the company’s hiring manager Karli Buxton also pled guilty and admitted that she was aware some employees presented the company with fraudulent documents and were likely not authorized to work legally within the U.S. To make matters worse, Washburn admitted that he had discussions with other managers that certain employees were undocumented and made the decision that only employees with “good paperwork” would be assigned to work at the military bases, which require extensive on-base screening procedures.

In addition, the company itself pled guilty, admitted that its managers hired people who did not have authorization to legally work within the U.S., agreed to forfeit $230,000 it gained as a result of hiring undocumented workers, and agreed to participate in a federal program (Department of Homeland Security and U.S. Immigration and Customs Enforcement’s Mutual Agreement between Government and Employers Program). This program requires companies to submit to audits that verify only people authorized to work in the U.S. are employed and to participate in training discussing issues like fraudulent documents and forced labor. Clearly, forfeiting a quarter of a million dollars is a hefty fine and a punishment these companies should not take lightly.

Now, employers may be wondering how this San Diego company who had contracts with the military was busted in the first place. In the criminal complaint filed against Washburn, the government reveals that an undercover Homeland Security Investigations agent was hired at the company using a fraudulent Permanent Resident card and Social Security number. This agent was able to get the job with the help of a “confidential source” that already worked there and told Washburn that he wanted to help his friend (the undercover agent) find a job. The company’s employee represented to Washburn that the undercover agent was an undocumented worker.

This is interesting for employers because the federal government is not just working off of anonymous tips or hunches. These federal agents are now posing as actual undocumented workers. Employers should take heed and be aware that hiring undocumented workers can be financially ruinous for their business.