Compliance Can’t Be Outsourced: Why ICE May Still Come Knocking

July 23, 2025
by Lofton Staffing

ICE has made it clear: worksite enforcement is a top priority. While enforcement efforts slowed in recent years, ICE is now actively conducting surprise I-9 audits, unannounced inspections and targeted investigations.

Why the renewed push? ICE has outlined several goals driving its increased efforts:

• To deter unauthorized employment
• To hold employers accountable
• To ensure that U.S. businesses are not gaining a competitive advantage by violating immigration laws

How Employers Can Be Held Liable—Even Without Direct Hiring

A common (and risky) assumption among employers is that liability ends with the staffing agency. Unfortunately, that’s not how ICE views it. Even if you do not directly employ a worker, you can still be held liable if it is determined that you knew or should have known that unauthorized workers were working on your jobsite.

In addition, under the “joint employer” doctrine, agencies like the Department of Labor can treat you as a co-employer with the staffing firm. That means you share responsibility for I-9 compliance and immigration-related obligations.

This legal framework allows ICE to hold host employers accountable, particularly if there are signs of willful ignorance or lack of due diligence.

Common Compliance Mistakes That Can Incur ICE Penalties

Not all ICE penalties are related to hiring undocumented workers. Once an investigation begins, even routine onboarding errors can incur fines. Some of the most common mistakes involve I-9 form errors and omissions, such as:

• Failure to complete Form I-9 for each employee
• Missing or incomplete sections (no employee signature, no document details)
• Improper corrections (using whiteout or erasing mistakes instead of following correction procedures)
• Using outdated I-9 forms
• Accepting invalid or expired documents
• Not using E-Verify properly
• Ignoring red flags (such as inconsistent documents or Social Security “no match” letters)

Each I-9 error can result in a separate fine—penalties can quickly add up even if errors are administrative. Paperwork violations alone can cost up to $2,700 per form. For knowingly hiring or continuing to employ unauthorized workers, penalties can exceed $27,000 per violation—and in cases of repeated or willful violations, criminal charges may apply.

Even if these issues stem from the agency, your business can face serious consequences if it is found to be complicit or failed to exercise proper oversight.

Proactive Steps to Reduce Risk

The good news? There are concrete actions employers can take to reduce liability when working with staffing partners and third-party vendors:

1. Vet Your Staffing Agencies Carefully

• Ask about their I-9 process, use of E-Verify, and compliance training
• Inquire about any past ICE audits or violations
• Watch for red flags such as low pricing or high turnover rates

2. Audit and Monitor Regularly

• Request documentation samples
• Request e-verify reports
• Keep a record of your oversight efforts

3. Train Internal Teams

• Ensure HR, legal, and procurement personnel know the risks
• Watch for warning signs of noncompliance in vendor relationships
• Foster a culture of compliance from the top down
• Review your internal onboarding processes

Final Thoughts

ICE’s enforcement posture is changing. Even if you’ve never been targeted before, now is the time to re-evaluate your staffing agency partnerships and vendor oversight. Remember – when it comes to immigration compliance, outsourcing labor does not mean outsourcing risk.

Lofton ensures all assignment employees are properly authorized to work and have complete and current documentation. Our internal teams receive routine training and testing on the entire I-9 process. We E-verify every hire and conduct quarterly audits of all onboarding processes. We are committed to keeping ourselves and our clients compliant!

Coming Soon: Part Two

In our next post, we’ll walk through what happens during an ICE worksite inspection and how to prepare your staff and response plan in advance.

Why Choose Lofton as your Staffing Partner?

Choosing Lofton Staffing as your staffing partner offers a strategic advantage in today’s competitive job market. With decades of industry expertise and a comprehensive understanding of both the staffing and security sectors, Lofton excels in connecting organizations with top-tier talent that not only meets the technical requirements of each role but also aligns with your company’s culture and values. Our tailored approach ensures that we effectively address your specific needs, while our commitment to excellence and integrity helps mitigate hiring risks, reduces turnover, and enhances overall employee satisfaction. By partnering with Lofton, business executives and HR managers can streamline their recruitment processes, save valuable time and resources, and ultimately cultivate a workforce ready to drive organizational success.