Can I Sue a Company for Hiring Illegal Immigrants?

Legal Grounds for Litigation

In order to sue a company for hiring illegal immigrants, you must have a valid legal reason for doing so. Most lawsuits must be filed within certain time limits, but if you are able to show that you have been directly harmed by the actions of the company in question you may be able to overcome such time limits under various exceptions. A citizen or legal resident may file suit under 8 U.S.C. § 1324(a)(1)(A)(iv) which holds responsible anyone who knowingly hires an illegal immigrant . Specifically, this law states: Any person or entity which is…knowingly to hire, for employment in the United States an alien knowing the alien is an unauthorized alien (as defined in paragraph (p)), in the case of a violation for which an employer…of the person or entity has not received less than two (2) notices [by the Bureau of Immigration & Customs Enforcement] within the preceding three (3) years… Such a fine is assessed for each illegal immigrant that the defendant has hired into his or her employment. If it happens only once, it may be written off as a mistake moving forward, but repeated infractions show intent. In addition to this civil liability, there is criminal liability for those who engage in a pattern or practice of violations under 8 U.S.C. § 1324(a)(1)(A)(iii) which holds liable those who engage in a pattern of hiring unauthorized aliens in a manner that violates the law.

Illegal Immigrants: Federal Employment Laws

Employers in the United States are obligated to follow federal and local immigration laws with respect to the employment of alien employees. Employers are prohibited from discriminating against any applicants or employees on the basis of immigration or national origin in violation of the Immigration Reform and Control Act of 1986. Under the Act, employers must complete an Immigration and Nationality Form I-9 for all employees and make a good faith effort to verify their eligibility to work in the United States. Immigration and Nationality Form I-9 requires an employee to identify himself with his name and date of birth, and present documents establishing his identity and employment eligibility. An employer must, with some exceptions, complete the form within three days of an employee beginning work.
Employers that violate these laws regarding employment may be subject to civil penalties. A civil penalty range of $220 to $1,100 per violation applies for employment of unauthorized aliens. There are several factors which can cause the penalty to be enhanced or mitigated, including whether the employer has been found to have committed the same or similar prior violations, or whether the employer has established a formal training program.

Actions Against Companies: Civil and Criminal

In addition to governmental enforcement actions that can result in company fines, penalties, and lawsuits, civil suits may be brought against companies employing illegal immigrants. For example, companies that refuse to rehire workers or refuse to accept workers’ documents when they come back into conformity with the law might face civil action for discrimination by hired workers or former workers.
Another area of significant liability for companies employing illegal aliens may be the immigration-related discrimination that occurs when employees are rehired. The employment authorization of some or all the company’s employees may have expired by the time they are rehired, which can result in claims of workplace discrimination based on immigration status. Signing a new Form I-9 does not insulate employers from their liability in cases like these. The Department of Justice has an ongoing initiative that seeks to prevent discrimination based on perception of immigration status.
One of the greatest risks for employers who hire illegal immigrants is the liability associated with wrongful death, personal injury, or workers’ compensation. If an employer hires someone without the proper authorization, and that employee has a record of violence or is involved in some other incident on company property that puts another employee in harm’s way, then the employer could be held liable for hiring that person. The company will be on the hook for any medical bills, lost wages, and other damages that are incurred by the injured worker.

Obstacles to Seeking Legal Action Against Companies

Suing a company for employing illegal immigrants may be difficult for two reasons. First, you will have the burden in a civil suit to prove damages to yourself individually, by pointing to specific corporations who violated the law and harmed your personally. This will likely be an uphill battle. Secondly, you may not even have standing to sue.
In order to sue some one, you must have "standing" or the right, to bring a lawsuit. 17 NY Jur 2d Creditors’ Rights § 9 (2023). In order to have standing, you must show that you have suffered some harm that is specific to you, that is fairly traceable to the defendant’s action, and you must show that a favorable ruling will likely redress your harm. See American Civil Liberties Union v Clapper, 937 F Supp 2d 118 (SDNY Jan 2013). If others suffered similar harm, but you did not, you will likely not have standing to sue for that harm.

Recent Selected Cases and Their Results

Recent case studies in which companies or organizations have become involved in legal action or settled for damages over allegations of employing illegal immigrants have had steep price tags attached. In 2014, the multinational company Signal International, which was accused of exploiting immigrant workers brought into the U.S. by the American Red Cross after natural disasters, agreed to pay $5 million in penalties and damages to the exploited workers, the U.S. Department of Labor and the American Red Cross. The company hired hundreds of Thai immigrants for reconstruction work after Hurricane Katrina, but did little to improve conditions for them. Twelve months later, Signal International was accused again of violating the federal Trafficking Victims Protection Act when accommodating another group of workers.
In another widely reported case, construction and engineering giant Kiewit Corp. reached a $29 million settlement for employing illegal immigrants through a subsidiary. The U.S. Immigration and Customs Enforcement had accused the subsidiary of knowingly employing about 750 illegal immigrants, using fake identification cards. Much like in the case of Signal International, Kiewit was accused of withholding information on workers’ immigration status from the U . S. Department of Labor.
The lawsuit against Kiewit also noted that human resources officials "took steps to avoid the impression that they [Employees with expired or missing documents] were employed by Kiewit directly." The company was accused of using a pass-through company, CranMoore, as an intermediary to pay the workers. It’s a tactic that has implications for other companies when they seek to avoid liability through the use of third-party companies.
When Options Run Out
Elsewhere, the dance hall chain Balcas/Tequila Honey Ha! in Washington, D.C., ultimately went out of business after employing illegal immigrants and failing to pay back overtime. The employees were paid as contract employees rather than hourly workers, often 70% less than required by law. In 2015, a federal judge ordered the company to pay $3.3 million in back wages and damages to workers.
The use of illegal immigrants by corporations might affect the U.S. economy. According to a study from the National Research Council, about 54% of unauthorized immigrants, or about 7.9 million unauthorized workers, are employed in lower-paid industries. High rates are found in retail trade, agriculture, construction and similar sectors in which workers make less than $30,000 a year.

Disclosure and Reporting: What to Know About Whistleblowers

Private individuals who have evidence that a company is employing illegal aliens or is otherwise violating federal immigration law may file a report with the federal authorities. A whistleblower is a person who reveals information, typically pertaining to an employer’s unlawful activity. The Federal False Claims Act is designed to encourage these types of disclosures by protecting whistleblowers and providing financial rewards for revealed information.
A person filing a whistleblower lawsuit may receive between 15%-30% of the funds recovered by the government if the action is successful. In order to be eligible for this portion of the recovery, however, the individual must be an original source of the information filed with the federal court. If the government decides not to intervene in the case, it may be possible for the whistleblower to continue with the lawsuit on behalf of the federal government as a relator.
Although whistleblower protection laws exist at the federal level and in many states, not all instances of whistleblowing are protected. If an employer terminates an employee in retaliation for making a protected disclosure, the employee may have a claim for wrongful termination against the employer.

Conclusion and Legal Considerations

This article has provided an in-depth look at whether or not you can sue a company for employing illegal immigrants. We have seen that despite the fact that employing immigrants is actually illegal under federal law, it, ironically, cannot actually be litigated in a civil court. We have seen that there are limited options available that can be attempted but which will almost certainly fail, and we have looked at some examples of cases that have happened in which employers did in fact employ illegal immigrants and that were awarded damages. Finally, we have looked at whether or not suing for employing illegal immigrants is considered to be unethical .
While it is always difficult to determine exactly what the law will permit in advance, this article should provide you with enough guidance and information to make an informed decision as to whether or not you will be able to sue a company that has employed illegal immigrants and whether or not you are likely to win or receive any damages in doing so.
If you are considering taking action against a company for employing illegal immigrants and suing them, then you should first seek legal advice from a qualified immigration attorney. If you do not have a lawyer already, then you can look on the American Bar Association website to find a lawyer in your area.