Is Your Roofing Business at Risk? New I-9 Crackdown Explained!

📅 February 20, 2025 ⏱️ 26:48 🎤 Adam, Philip Seagle

Chapters

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0:00

Immigration Reform and I-9 Audits

Introduction to the topic of immigration reform, I-9 audits, and the guest Philip Seagle, highlighting historical trends under different presidencies.
0:26

Guest Introduction: Philip Seagle

Adam introduces Philip Seagle, an attorney specializing in construction law, particularly for roofing contractors, who will explain I-9 audits and their implications.
3:33

I-9 Form Explained

Philip explains the purpose of the I-9 form, its two sections for identity and work authorization, and the documentation requirements for employees.
5:08

Subcontractor Liability

Discussion on the liability of roofing contractors concerning the legal status of their subcontractors' employees and the 'Walmart case' precedent.
7:34

Construction Industry and Immigration

Analysis of the construction industry's high reliance on undocumented immigrants and historical trends of I-9 audits under different presidential administrations.
9:20

Consequences of I-9 Audits

Philip discusses the severe consequences of I-9 audits, especially for contractors on public projects, including termination of contracts and financial penalties.
11:08

Triggers for I-9 Audits

Explanation of factors that can trigger an I-9 audit, such as competitor complaints, E-Verify system flags, and the audit process itself.
13:07

Financial Exposure and Penalties

Details on the financial penalties for technical vs. substantive I-9 violations and how these can escalate based on frequency and nature of errors.
14:15

Preparing for I-9 Audits

Philip's advice on how contractors can proactively prepare for I-9 audits through self-audits and proper documentation practices.

Speakers

Adam

Host

Philip Seagle

Attorney at Hendrick Phillips Salzman & Siegel

Key Takeaways

✦

Conduct regular internal I-9 audits: Assign someone other than the original I-9 preparer to review forms for accuracy and completeness to catch errors early.

✦

Ensure all current employees have a completed I-9 form: If a form is missing, complete it immediately, date it currently, and attach a memo explaining it was found missing during a self-audit.

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Understand subcontractor liability: While subcontractors are responsible for their employees' I-9s, main contractors can be liable if they have actual knowledge of illegal labor.

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Include I-9 compliance clauses in subcontracts: Add a clause requiring subcontractors to comply with I-9 regulations to protect your business.

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Be cautious with E-Verify: If you are an E-Verify participant and frequently receive 'notices of non-confirmation,' it could flag your company for an I-9 audit.

✦

Prepare for swift action during an audit: If an audit notice is received, contact legal counsel immediately; ICE typically provides only 72 hours to produce documents.

✦

Address technical errors proactively: Correcting technical errors before an audit can save significant money, as penalties increase for repeat or unaddressed violations.

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