Learning Center
Plans & pricing Sign in
Sign Out

Fraud Investigations into Aramark Contracts

VIEWS: 260 PAGES: 22

Fraud Investigations into Aramark Contracts document sample

More Info

      This Webcast Will Begin Shortly
If you have any technical problems with the Webcast or
    the streaming audio, please contact us via email at:

                     Thank You!

  A New Dawn for Immigration and Employer

                   June 30, 2009

                 Presented By:
           Sean G. Hanagan, Esq.
       Association of Corporate Counsel


     Immigration Reform: How did we get here?
•    Comprehensive reform defeated August 2007
•    White House: Business support not enough
•    Congress: Bi-Partisan failure
•    Pro-Immigration: Divided & fractured
•    Anti-Immigration: Vocal & united
•    Business: Dodging and Weaving
•    Unions: Split Verdict, Recent Unity

A Rosier Future Under Obama?
•  Early Postponements of Regulations
•  Gov. Napolitano and Arizona Experience
•  Social Security No-Match Rule remains enjoined;
   DHS supplemental rule published
•  Administration agrees to postpone Federal Contractor
   E-Verify Rule mandating an estimated 160,000
   contractors to use E-Verify to at least September 8,


  A Rosier Future Under Obama?
•  Administration did not support E-Verify requirement
   for all recipients of TARP funds.
•  Administration included $100M in FY 10 budget for E-
   Verify expansion.
•  Comprehensive Immigration Reform
•  New worksite enforcement policy targeting

  Role of Worksite Enforcement
•  Check illegal immigration
•  Stop Abusive and Egregious Employment Practices
•  Deter Criminal Activities including:
    –  Alien Smuggling
    –  Illegal Inducement
    –  Harboring
    –  Unauthorized Employment
    –  Document Fraud
•  Promote national security
•  Protect critical infrastructure
•  Ensure fair labor practices


     Introducing DHS Secretary Napolitano
•  "I expect to increase the focus on ensuring that employers
   of unlawful workers are prosecuted,"

•  DHS Secretary Napolitano, January 15, 2009
•  During her DHS Senate Confirmation Hearing

•  “I signed it, too, out of the realization that the flow of illegal
   immigration into our state is due to the constant demand of
   some employers for cheap, undocumented labor.”

•  Former AZ Gov. Napolitano, July 2, 2007
•  Statement on Legal Arizona Workers Act

     Immigration Inflation:
     Increasing the Cost of Doing Business
•    Increased I-9 audits
•    Criminal indictments & grand juries
•    Large-scale raids
•    Publicizing raids and indictments
•    Criminal search warrants
•    Asset forfeiture
•    Federal contract debarment


     DHS Rhetoric? - The FY 08 Numbers
•  Over 1,100 criminal arrests tied to worksite investigations;
•  Over 5,100 administrative (deportation) arrests;
•  Indicted 135 business owners, managers, supervisors or human
   resources employees for criminal offenses including harboring,
   smuggling, and money laundering;
•  Largest single site worksite operation at a Howard Industries’
   plant in Laurel, Mississippi, resulting in arrest of over 600
•  Over $30 million in criminal fines, restitutions, and civil
   judgments in worksite enforcement cases;
•  Record $20.7 million settlement; and
•  For the first time, debarring seven companies from federal

The Genesis of an ICE Investigation
•    Tips from employees and public to ICE hotlines
•    Unions becoming increased source of tips to ICE
•    Non-response to hotline/ethics calls
•    Social Security No-Match letter history
•    Local pressures
•    Key industries (high turnover)
•    Critical infrastructure and Dept. of Defense
•    DOL, SSA, IRS, etc.
•    Temporary worker providers


The New DHS Worksite Enforcement Strategy
The Bellingham, Washington Raid
     What happened?
•    ICE initiates “first” raid under Obama Administration.
•    Secretary Napolitano not notified.
•    Strong community reaction, citing “broken promise.”
•    Napolitano vows review of operation, freezes other
     The results:
•    28 employees released and granted deferred action.
•    28 employees issued employment authorization by DHS.
•    “Publisher clearinghouse” celebration.

Re-Introducing the I-9
•    It is evidence for a prosecution.
•    It is a prosecution tool against the employee.
•    It is a prosecution tool against the employer.
•    Guess who signs it?
•    … Potential defendants.


Tips for Surviving the New Era of Worksite
•    Re-acquaint yourself with I-9 process
•    Where are the records?
•    Find out about No-Match history
•    Procedures to create UNIFORMITY
•    Respond to identified risks/complaints
•    Prepare for the audit freeze
•    Training
•    The form
•    Maintenance and internal audits

Questions for Employers to Ask:
•    Do you have written policies?
•    Do you apply procedures uniformly?
•    Have you trained HR Managers?
•    Does payroll equal number of I-9s?
•    Where are the No-Match letters?
•    SSNVS? What happens?
•    Heightened review of Supervisors & HR staff?
•    What control over temps/recruiters?
•    Internal audits and corrections?
•    Remember: Civil Rights
•    Am I using the new Form I-9 – April 3, 2009?


                     PART 2: I-9

Employment Authorization Verification:
New I-9 Form
•  New Form I-9 went into effect on April 3, 2009
•  New form at
•  All documents must be unexpired
•  Eliminates I-688, I-688A and I-688B
•  Adds U.S. passport card to List A
•  Adds foreign passport with certain machine readable
   immigrant visas to List A
•  Adds Micronesia and Marshall Islands passports with I-94
   to List A


Base Obligations of Employers
•  Properly and fully complete Form I-9 within 72 hours of
   employee’s start of employment:
    –  Certain parts must be completed on day 1
    –  Documents must be presented within 72 hours
    –  Listed documents must be reviewed to ensure they
       look authentic
    –  Two (2) schools of thought as to whether to copy and
       retain back-up documents
•  Employers can also request to see Social Security cards
   on the first day of employment for payroll purposes

Employer Review and Certification
•  Employee completion of Section 1 no later than first day at
•  Section 2 Must Be Completed No Later Than Three
   Business Days After Commencement of Employment
•  One Document in LIST A OR
•  One Document in LIST B AND One Document in LIST C
•  Work Start Date in Certification Bloc
•  Employer Representative Signature, Printed Name, Title
•  Business Address
•  Date


Electronic I-9
•  USCIS provides a Portable Document Format fillable-
   printable Form I-9 from its
•  Form I-9 can be electronically generated and retained,
   provided that:
    –  The resulting form is legible;
    –  No change is made to the name, content, or sequence
       of the data elements and instructions;
    –  No additional data elements or language are inserted;
    –  The employee receives Form I-9 instructions; and
    –  The standards specified under 8 CFR 274a.2(e) are

•  E-Verify:
    –  Formerly the Basic Pilot/Employment Eligibility
       Verification Program)
    –  Operated jointly by the DHS and SSA online
    –  Check the work status of new hires by comparing
       information from an employee’s I-9 form against SSA
       and DHS databases
    –  More than 87,000 employers are enrolled in the
       program, with over 6.5 million queries run so far in
       fiscal year 2008
    –  Voluntary program for most employers - YMMV
    –  Over 444 million records in the SSA databases and
       more than 60 million in DHS databases
    –  Registered employers growing over 1,000 per week






FAR Federal Contractor Rule
•  Postponed until September 8, 2009 - implementation
   of the E-Verify requirement
•  Prime federal contracts with a period of performance
   longer than 120 days and valued above $100,000
•  Subcontracts for services or construction valued at
   $3,000 or more
•  Initially was to go into effect January 15, 2009


            PART 3: SS No-Match

Social Security Reporting Basics
•  When the SSA cannot match an employee’s SSN
   and name as reported on the W-2, the worker’s
   earnings are posted to the Earnings Suspension File
•  If the name and SSN do not match its records, the
   SSA will send a notice of the discrepancy to the


Regulations In Limbo
•  In 8/07, the DHS announced final regulations
   outlining procedures for employers to follow when
   they receive a Mismatch letter. The regulations were
   to have become effective on 9/14/07.

Regulations In Limbo
•  In 8/07, the DHS announced final regulations
   outlining procedures for U.S. District Court in
   California issued an injunction blocking these
   regulations in AFL-CIO, et al. v. Chertoff, et al. (N.D.
   Cal. Case No. 07-CV-4472 CRB)
•  DHS expected to submit new brief by July 10, to
   move to compromise, revision


Regulations In Limbo
•  Employers should not follow the procedure until after
   it has been found to be lawful, as it contains
   provisions that could violate federal law.

Proposed Regulations
•  Would require employers to complete another I-9 for
   employees subject to a Mismatch letter if not resolved
   within 90 days. When completing the I-9, an employer
   must refuse to accept certain documents that have
   been the subject of a mismatch even if the document
   reasonably appears valid.


Aramark Case
•  Aramark Facility Services v. Service Employees Intl
   Union Local 1877 (530 F.3d 817). The Company
   received a no-match letter on 3,300 employees. It
   sent out a letter to 48 employees giving them 3 days
   to get a new SS card or a verification form showing
   the SSA card was being processed.

Aramark Case
•  Ninth Circuit: a no-match letter does not make any
   statement about . . . immigration status. Further,
   there are multiple causes for SSN mismatches,
   including typos, name changes, compound last
   names prevalent in immigrant communities, and
   inaccurate or incomplete employer records.


Aramark Case
•  The employees’ failure to correct the SSN
   discrepancies did not provide the Company with
   constructive knowledge that the employees were
•  The Court considered the time period given to the
   employees to respond to be insufficient.

If You Receive A No-Match
•  Having procedures in place to respond to the
•  Follow up appropriately with the employee
•  Do not ignore a SSA no-match letter


                  PART 4: Visas

Impact Of Economic Downturn On
Nonimmigrant Visa Status
•  Due Diligence
    –  Employee status
    –  Corporate compliance
•  Myriad Personnel Actions
    –  Reductions-in-force
    –  Benching/furloughs
    –  Changes in compensation
    –  Changes in position duties
    –  Changes in job location
    –  Changes in benefits


Impact Of Economic Downturn On
Permanent Residence Process
•  Individuals PERM (Labor Certification)
    –  Termination
    –  Change in salary, position, job location
•  Entire PERM Program
    –  Hiring “freezes”
    –  RIF’s
    –  Targeted Position Eliminations
•  U.S. Applicant Availability
•  DOL Scrutiny of Target Industries
•  Long Term Horizon
    –  Final NIV dates

          Thank you for attending another presentation from
               ACC’s Desktop Learning Webcasts

  Please be sure to complete the evaluation form for this program as
     your comments and ideas are helpful in planning future programs.
  If you have questions about this or future webcasts, please contact
                     ACC at

This and other ACC webcasts have been recorded and are available,
    for one year after the presentation date, as archived webcasts at
  You can also find transcripts of these programs in ACC’s Virtual
              Library at


To top