Federal Contractors Beware – Debarment Provision May Be Enforced

United States Immigration and Customs Enforcement (ICE) recently notified seven companies that it is considering debarring them from federal contracting because they have been found to be unlawfully employing unauthorized workers in violation of the Immigration and Nationality Act. While the federal regulations had previously authorized debarment for such violations, the former Immigration and Nationality Service (INS) had instead focused on civil fines. ICE officials have indicated that these are the first instances in which it is considering the debarment option as an increased enforcement measure that is part of ICE's new worksite enforcement strategy.

The named companies have each been convicted of previous violations of the Immigration and Nationality Act, and they are immediately barred from competing for federal contracts even while debarment is still being considered. If any of the companies are debarred, the company's name will be entered into the government's Excluded Parties List System (EPLS), and the company will be prohibited from receiving federal contracts, certain subcontracts, and some federal assistance and benefits for as long as the company remains on the EPLS. An ICE Suspension and Debarment Official will determine the length of debarment based on the seriousness of the violation and whether it was civil or criminal. Companies do have the right to challenge the decision within 30 days of the debarment notice.

ICE has increased its worksite enforcement initiative, and all companies, including federal contractors, should be aware of the increased civil and criminal penalties associated with hiring or employing unauthorized workers. Please contact a member of our immigration group to discuss any questions regarding ICE's worksite enforcement strategy, I-9 verification and compliance, and corporate compliance policies.

For additional information regarding this debarment provision or any other immigration-related needs, please contact any member of our immigration group.

This publication is intended for general information purposes only and does not and is not intended to constitute legal advice.  The reader must consult with legal counsel to determine how laws or decisions discussed herein apply to the reader's specific circumstances.