Rachel Browning’s Legal Blog

            Another beloved U.S. business institution has fallen from grace.  And this time it’s not from the financial, insurance or auto industries.  Rather, the U.S. Immigration and Customs Enforcement (ICE) and the Butler County Sheriff’s Office in Cincinnati, Ohio announced today that a $40,000 fine settlement has been reached between ICE and the Krispy Kreme Doughnut Corporation for violations of immigration laws. Yes, the proprietor of the famous Hot Krispy Kreme Original Glazed doughnut (and one of my guilty pleasures), has been sanctioned for hiring workers who were not authorized to work in the U.S.  ICE conducted an I-9 inspection of Krispy Kreme after receiving information from the Butler County Sheriff’s Office revealing that the company had apparently been employing numerous illegal aliens at one of their doughnut factories in Cincinnati.  The company had been audited and issued a notice of intent to fine in September 2007 by ICE.  As part of the settlement, Krispy Kreme has taken measures to “revise its immigration compliance program,” and has agreed to begin “implementing new procedures to prevent future violations of federal immigration laws.”  If forty-thousand dollar fines don’t teach these multi-million dollar, publicly-traded, international corporations a lesson, nothing will.  (FYI, $40,000 represents approximately .007% of Krispy Kreme’s $5.6 million operating income for the first quarter of last year).  But not to worry, despite the potential financial set-back, Krispy Kreme remains a viable corporation, it’s Pavlovian “Hot Fresh” sign still illuminated to the delight of patrons across the country in need of their daily sugar high.

            All sarcasm aside, employers are of course required to complete and retain a Form I-9 for each individual they hire for employment in the United States. This requires employers to review and record the individual’s identity document(s) and determine whether the document(s) reasonably appear to be genuine and related to the individual.  Employers should take the necessary steps to ensure the work eligibility of their employees and keep up-to-date and accurate records of each employee’s identification and proof of proper work authorization.  The settlement reached between Krispy Kreme and ICE may not seem like such a harsh penalty (much less, incentive not to hire illegal workers) for this well-established franchise, but thousand-dollar or more fines could have significant financial impact on smaller businesses in the U.S. if/when they are sanctioned for immigration violations. 

            If you would like further information and the rights and responsibilities of employers and employees and I-9 compliance, please contact the Employment Immigration Attorneys of Garg & Associates, PC for assistance.