How Two Staffing Companies Escaped a Potential $1.4 Million Form I-9 Fine

With hundreds to thousands of hires a year, staffing companies can truly be hit hard if their I-9 forms are not in compliance. In 2016, Spectrum Technical Staffing Services faced a judgment to the tune of $1.4 Million for alleged I-9 form violations.

In U.S. v. Spectrum Technical Staffing Services and Personnel Plus, Inc., 12 OCAHO no. 1291, U.S. Immigration and Customs Enforcement (ICE) filed a four-count complaint against Spectrum for employment and Form I-9 violations. They later included Personnel Plus, Inc. in the complaint, as ICE found it suspicious that the staffing company was formed right after they filed a Notice of Inspection with Spectrum (The owners of both staffing companies were a husband and wife team). A concept called “successor liability” where all parties are accountable.

In the end, the courts decided that ICE had failed to prove successor liability, and did not provide evidence that Spectrum had transferred assets to Personnel. To read more, check out the full article here.

Source:
http://www.pre-employment.com/2017/01/01/staffing-company-escapes-potent...