Basic Pilot Program Employment Verification Process

The Illegal Immigration Reform and Immigrant Responsibility Act  (IIRIRA) of 1996 required INS and SSA to operate three voluntary pilot  programs to test electronic means for employers to verify an employee’s  eligibility to work, one of which was the Basic Pilot Program. Various Weaknesses Have Undermined the Employment Verification Process, but Opportunities Exist to Enhance It

		Current Employment Verification Process Is Based on Employers’ Review of Documents

In 1986, IRCA established the employment verification process based on  employers’ review of documents presented by employees to prove identity  and work eligibility. Employers must then certify that they have  reviewed the documents presented by their employees to establish identity  and work eligibility and that the documents appear genuine and relate to  the individual presenting them. Form I-9 Process Is Vulnerable to Document and Identity Fraud

Since passage of IRCA in 1986, document and identity fraud have made it  difficult for employers who want to comply with the employment  verification process to ensure they hire only authorized workers. The Number and Variety of Acceptable Documents Hinders Employer Verification Efforts

The large number and variety of documents that are acceptable for  proving work eligibility have complicated employer verification efforts  under IRCA. According to DHS officials, the department is assessing possible revisions  to the Form I-9 process, including reducing the number of acceptable  work eligibility documents, but has not established a target time frame for  completing this assessment and issuing regulations on Form I-9 changes. Although the Basic Pilot Program may enhance the employment  verification process and a mandatory program could assist ICE in targeting  its worksite enforcement efforts, weaknesses exist in the current program. Competing Priorities and Implementation Challenges Have Hindered Worksite Enforcement Efforts

		Worksite Enforcement Has Been a Relatively Low Priority

Worksite enforcement is one of various immigration enforcement  programs that competes for resources and among INS and ICE  responsibilities, and worksite enforcement has been a relatively low  priority. ICE Attributes Decline in Numbers of Employer Fine Notices and Worksite Arrests to Document Fraud and Resource Allocation Decisions

The number of notices of intent to fine issued to employers as well as the  number of unauthorized workers arrested at worksites have generally  declined. Various  studies have shown that the availability and use of fraudulent documents  have made it difficult for ICE agents to prove that employers knowingly  hired unauthorized workers. After  September 11, 2001, INS and ICE focused investigative resources on  national security cases, and in particular, focused worksite enforcement  efforts on critical infrastructure protection, which is consistent with DHS’s  primary mission to combat terrorism. As part of the Secure Border Initiative, in April 2006 ICE announced a new  interior enforcement strategy to target employers of unauthorized aliens,  immigration violators, and criminal networks. Under this strategy, ICE  plans to target employers who knowingly employ unauthorized workers by  bringing criminal charges against them. ICE has reported increases in the  numbers of criminal arrests, indictments, and convictions between fiscal  years 2004 and 2005 as a result of these efforts. INS and ICE Have Faced Difficulties in Setting Fine Amounts and in Detaining Unauthorized Workers, but Have Taken Steps to Address Difficulties

INS and ICE have faced difficulties in setting and collecting fine amounts  that meaningfully deter employers from knowingly hiring unauthorized  workers and in detaining unauthorized workers arrested at worksites. Furthermore, the Basic Pilot Program shows promise for enhancing the  employment verification process and reducing document fraud if  implemented on a much larger scale. ICE is  taking some steps to address difficulties it has faced in its worksite  enforcement efforts, but it is too early to tell whether these steps will  improve the effectiveness of the worksite enforcement program and help  ICE identify the millions of unauthorized workers and the employers who  hired them.
Why GAO Did This Study

The opportunity for employment is one of the most important magnets attracting illegal immigrants to the United States. The Immigration Reform and Control Act (IRCA) of 1986 established an employment eligibility verification process and a sanctions program for fining employers for noncompliance. Few modifications have been made to the verification process and sanctions program since 1986, and immigration experts state that a more reliable verification process and a strengthened worksite enforcement capacity are needed to help deter illegal immigration. This testimony is based on GAO's August 2005 report on the employment verification process and worksite enforcement efforts. In this testimony, GAO provides observations on (1) the current employment verification process and (2) U.S. Immigration and Customs Enforcement's (ICE) priorities and resources for the worksite enforcement program and the challenges it faces in implementing that program.

What GAO Found

The current employment verification (Form I-9) process is based on employers' review of documents presented by new employees to prove their identity and work eligibility. On the Form I-9, employers certify that they have reviewed documents presented by their employees and that the documents appear genuine and relate to the individual presenting the documents. However, document fraud (use of counterfeit documents) and identity fraud (fraudulent use of valid documents or information belonging to others) have undermined the employment verification process by making it difficult for employers who want to comply with the process to ensure they hire only authorized workers and easier for unscrupulous employers to knowingly hire unauthorized workers with little fear of sanction. In addition, the large number and variety of documents acceptable for proving work eligibility has hindered employer verification efforts. In 1998, the former Immigration and Naturalization Service (INS), now part of DHS, proposed revising the Form I-9 process, particularly to reduce the number of acceptable work eligibility documents, but DHS has not yet finalized the proposal. The Basic Pilot Program, a voluntary program through which participating employers electronically verify employees' work eligibility, shows promise to enhance the current employment verification process, help reduce document fraud, and assist ICE in better targeting its worksite enforcement efforts. Yet, several weaknesses in the pilot program's implementation, such as its inability to detect identity fraud and DHS delays in entering data into its databases, could adversely affect increased use of the pilot program, if not addressed. The worksite enforcement program has been a relatively low priority under both INS and ICE. Consistent with the DHS mission to combat terrorism, after September 11, 2001, INS and then ICE focused worksite enforcement efforts mainly on detecting and removing unauthorized workers from critical infrastructure sites. Since fiscal year 1999, the numbers of employer notices of intent to fine and administrative worksite arrests have generally declined. According to ICE, this decline is due to various factors, such as the prevalence of document fraud that makes it difficult to prove employer violations. ICE officials told us that the agency has previously experienced difficulties in proving employer violations and setting and collecting fine amounts that meaningfully deter employers from knowingly hiring unauthorized workers. In April 2006, ICE announced a new interior enforcement strategy to target employers who knowingly hire unauthorized workers by bringing criminal charges against them, and ICE has reported increases in the number of criminal arrests and indictments since fiscal year 2004. However, it is too early to tell what effect, if any, this new strategy will have on enhancing worksite enforcement efforts and identifying unauthorized workers and their employers.