As immigration policy is still at the center of national conversations, Black-owned businesses and other minority-owned enterprises will need to prepare for new levels of worksite enforcement under the watchful eyes of Tom Homan, the new Border Czar. In his ilk, Homan’s previous administration saw more audits, raids and other enforcements of employers that they suspected of hiring illegal workers.
For minority-owned businesses—especially those who work in low-migrant labor markets such as construction, hospitality, agriculture and food service—these regulations are not only a regulatory issue, they are also a matter of financial viability and community confidence.
History of Intensified Enforcement
Office audits rocketed under Homan’s previous administration at Immigration and Customs Enforcement (ICE). The I-9 audits increased by four times over the previous year, and more than 5,200 worksite investigations started in 2018. Such moves resulted in millions of dollars in fines and the firing of thousands of workers — often with traumatic results for companies who were left unable to bounce back from the cost and damage.
Why Black-owned Companies Are So Particularly at Risk.
These are especially concerning to Black-owned enterprises, whose capital reserves are frequently short and their relationships with community members are often incalculable:
Stress: Fines for I-9 violations are in hundreds or thousands of dollars. These fines are cataclysmic for small companies.
Brand Damage: Bad publicity following enforcement actions can tarnish customer trust and loyalty, especially in a community-supporting industry such as food service.
Breakdowns in Day-to-Day Activities: Raids and audits break down the business activities and results in reduced productivity and occasionally the termination of key employees.
Industries and Locations at Risk
Enforcement targets immigrant-labor-intensive industries most, and minority-owned companies in those industries are especially on the chopping block. Enforcement actions tend to cluster in big immigrant states, like California, Texas, Florida and New York, by geography. These are also regions where minorities own a large share of business, increasing the stakes for Black business owners.
Preparing for Increased Enforcement
Minority owners can reduce risks, however, by taking proactive steps to be compliant:
Do Regular I-9 Audits: It is always helpful to review employee records frequently so you can catch problems in advance of an audit.
Reacquaint Employees with Compliance Policies: Make sure HR teams are updated on new regulations and are in the habit of generating good documentation.
Get Help from A Lawyer: Hiring an immigration attorney can provide business with the knowledge to understand all the laws and build a solid compliance program.
Plan for Contingency: If there is a well-defined response to an audit or raid, disruption can be reduced, and critical systems can be protected.
The Human Cost of Enforcement
Law enforcement actions in the past have been indicative of the wider impacts for companies and communities. One notable example was a well-known restaurant chain where mass layoffs, outrage and customer support were sent rocketing after compliance incidents. Such cases highlight the necessity of pre-planning—not just to stay legal and protected financially but also to maintain the bonds that power minority-owned companies.
Navigating the Road Ahead
While Tom Homan and the Trump administration will enact more aggressive rules, minority-owned companies must be on their guard. The regulatory landscape might be hard, but it is also the time for companies to build compliance and resilience. Black entrepreneurs can take action to ensure they not only maintain operations but also build a position for expansion and profitability in a rapidly changing legal climate.
With pre-planning, preparation and diligence, minority-owned companies can weather the storm and still survive despite increased scrutiny.
