Few situations create more panic for a dealership than when federal agents show up unannounced. On today’s episode of CBT NOW, Marcia Jackson, a partner at Wick Phillips specializing in Labor & Employment law, explains what dealers need to know if ICE agents show up at their door and the proactive steps they can take now to remain compliant.
What can trigger an ICE inspection?
With immigration policy being a significant focus of the current administration, many business owners and employees are increasingly concerned about potential conflicts involving ICE.
Jackson notes that these issues aren’t new. Employers often receive a notification letter from the U.S. Social Security Administration when an employee provides a Social Security number that doesn’t match what’s on file.
Within the automotive industry, ICE investigations are more likely to target manufacturers and facilities with larger workforces and a higher risk of immigration-related issues. Other agencies, such as the Department of Labor or OSHA, may also conduct unannounced inspections to enforce compliance.
There are several situations that can increase the likelihood of an inspection, including:
- An employee providing falsified information on their new hire paperwork, such as an I-9 form
- An employee with a criminal background
- Anonymous tips regarding the legal status of an employee
What proactive steps should dealers take to minimize the risk of an ICE visit?
Most agencies, particularly the Department of Labor, will not disclose what triggered an investigation. To mitigate risks, Jackson recommends several proactive steps for the dealership.
Train leaders to ensure I-9 compliance
Dealers should regularly review employee I-9 forms to ensure no information has been flagged. Employers are also required to retain I-9s for at least three years after an employee’s separation.
Jackson advises switching from paper I-9s to eVerify, a digital platform that can quickly confirm the validity of employee documentation and flag potential issues.
The leader responsible for completing I-9s should be trained to recognize potentially fraudulent identification. However, most I-9 issues arise when a manager neglects verification steps, accepts copies instead of the authentic form of identification, or overlooks the need to confirm work authorization.
Dealers may also consider limiting I-9 processing to a select group of trained leaders to reduce errors and strengthen compliance oversight.
Scheduled refresher trainings on hiring, termination and emergency procedures can also help maintain consistency and readiness.
"If employees, especially managers, are trained on how to respond in advance, it really helps settle nerves and it calms things down when people know that there's a plan."
Prepare employees
While an ICE visit may be unlikely, having a plan in place can help reduce panic and confusion. Jackson recommends designating a leader as the primary contact in the event of an ICE visit to represent the team and coordinate with legal counsel.
Restrict access to private areas
Dealerships should clearly mark private or restricted areas with signage. Depending on the type of warrant, agents may only be permitted to enter public areas. Limiting access to sensitive spaces helps maintain operational control during an inspection.
What legal rights do dealers and employees have during an inspection?
If several employees are arrested, it’s highly unlikely for the dealership owner to face arrest unless there is evidence of knowingly hiring individuals not authorized to work in the U.S.
The best practice is to observe and document everything during the warrant’s execution. Dealers should request a copy of the warrant, take photos and assign a company representative to accompany agents throughout the facility.
The representative should record the agents’ names, note conversations and document which areas were accessed. If an employee is detained, gather as much information as possible and share it promptly with legal counsel.
Jackson cautions against giving employees legal advice but encourages reminding them that they have the right to remain silent until they can speak with an attorney. Dealers may also offer to have the company’s attorney sit in with the employee for support.
The reality of the situation
Unfortunately, many compliance issues arise not from malice but from good intentions. Hiring managers with kind hearts may try to help individuals in legally impermissible ways. Regardless of intent, hiring someone who isn’t legally authorized to work in the U.S. is a serious offense that can lead to penalties, fines, and damage to the dealership.
At the end of the day, hiring managers who knowingly accept false documentation or conspire to falsify I-9 forms put both themselves and the dealership at risk.
