Employer Solutions Staffing Group II, L.L.C. v. Office of the Chief Administrative Hearing Officer

833 F.3d 480, 2016 U.S. App. LEXIS 14788, 100 Empl. Prac. Dec. (CCH) 45,612, 2016 WL 4254370
CourtCourt of Appeals for the Fifth Circuit
DecidedAugust 11, 2016
Docket15-60173
StatusPublished
Cited by12 cases

This text of 833 F.3d 480 (Employer Solutions Staffing Group II, L.L.C. v. Office of the Chief Administrative Hearing Officer) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Employer Solutions Staffing Group II, L.L.C. v. Office of the Chief Administrative Hearing Officer, 833 F.3d 480, 2016 U.S. App. LEXIS 14788, 100 Empl. Prac. Dec. (CCH) 45,612, 2016 WL 4254370 (5th Cir. 2016).

Opinion

LESLIE H. SOUTHWICK, Circuit Judge:

Employer Solutions Staffing Group II, L.L.C. (“ESSG”), petitions for review of an order imposing a fine for its alleged failure to complete properly the employment verification forms for 242 employees. ESSG used one person in Texas to examine original documents presented by employees and another person in Minnesota to examine photocopies of the same documents and then sign the verification form. An administrative law judge found that ESSG’s procedure violated the Immigration and Nationality Act. We GRANT the petition for review and VACATE the order except for a ruling as to one employee for which no review was sought.

FACTUAL AND PROCEDURAL BACKGROUND

In April 2010, ESSG, a temporary staffing agency, formed an agreement with Larsen Manufacturing Co., LLC, to provide staff for Larsen’s facility in El Paso, Texas. ESSG did not hire staff directly for Larsen but subcontracted with Flexicorps, Inc., based in El Paso, to perform this task. Flexicorps employees made all the hiring decisions for temporary workers at the Larsen facility. In addition, Flexicorps completed part of the Employment Eligibility Verification Form (the “1-9 Form”) for each employee hired. Flexicorps employees would examine original identifying documents presented by the hired employees and ensure hired employees completed Section 1 of the 1-9 Form, which required providing basic biographical information and signing an attestation that the hired employee was legally authorized to work. Flexicorps employees would make color photocopies of the original documents and send the photocopies along with the 1-9 Form to ESSG in Edina, Minnesota. ESSG employees would then inspect the photocopies and complete Section 2 of the 1-9 Form, which required a description of the identifying documents presented by the hired employee and a signed attestation that the employer examined the documents and believed them to be genuine.

In November 2011, Immigration and Customs Enforcement (“ICE”), which is part of the Department of Homeland Security (“DHS”), served a Notice of Inspection on ESSG, requesting that ESSG present for inspection 1-9 Forms for current and terminated employees in El Paso between February 2008 and February 2011. In February 2013, ICE served a Notice of Suspect Documents and Notice of Intent to Fine on ESSG. ICE alleged that ESSG failed to ensure that 242 employees completed properly Section 1, or failed to complete properly Section 2 or 3 of the 1-9 Form, thereby committing substantive paperwork violations. Further, ICE claimed ESSG violated the Immigration and Nationality Act (“INA”), 8 U.S.C. § 1324a(a)(l)(B), and ordered ESSG to pay fines totaling $237,162.75.

ESSG contested the charges and requested a hearing before an administrative *484 law judge (“ALJ”). The ALJ ruled for ICE in a Summary Decision, finding ESSG failed to complete properly Section 2 of the 1-9 Form for 242 employees. The ALJ fined ESSG $226,270 for these violations. 1 ESSG timely filed a petition for review of the ALJ’s order with this Court.

DISCUSSION

The Office of the Chief Administrative Hearing Officer (“OCAHO”) had jurisdiction for its actions under 8 U.S.C. § 1324a(e)(3)(A)-(B). 2 This court has jurisdiction to review final orders issued by OCAHO. § 1324a(e)(8).

Agency determinations are reviewed under the “highly deferential” standard of the Administrative Procedure Act, 5 U.S.C. § 706(2)(A), Knapp v. U.S. Dep't of Agric., 796 F.3d 445, 453 (5th Cir. 2015), while an agency’s interpretations of case-law are reviewed de novo. Willy v. Admin. Review Bd., 423 F.3d 483, 490 & n.18 (5th Cir. 2005). We apply the same de novo standard to agency determinations of constitutional law. Trinity Marine Prods., Inc. v. Chao, 512 F.3d 198, 201 (5th Cir. 2007). Appropriate deference will be given to DHS’s and ICE’s interpretations of ambiguities in the INA and in their own implementing regulations. See Chevron USA Inc. v. Nat. Res. Def. Council, Inc., 467 U.S. 837, 842-43, 104 S.Ct. 2778, 81 L.Ed.2d 694 (1984); Auer v. Robbins, 519 U.S. 452, 461, 117 S.Ct. 905, 137 L.Ed.2d 79 (1997).

I. Overview of the INA Employer Verification System

It is unlawful for an employer to hire an individual without complying with certain identity and employment authorization verification requirements. See 8 U.S.C. § 1324a(a)(l)(B), (b). The INA specifies that a “person or entity must attest, under penalty of perjury and on a form designated or established by the Attorney General by regulation, that it has verified that the individual is not an unauthorized alien by examining” employee documents. § 1324a(b)(l)(A). The statute provides that a document is acceptable only if it “reasonably appears on its face to be genuine.” § 1324a(b)(l)(A)(ii).

DHS, not the Attorney General, now has authority to create the form that facilitates the employer verification requirements; DHS also investigates violations of the INA See § 1324a(b)(l)(A), (e)(l)-(2). 3 Regulations for implementing the INA have been promulgated by DHS and its predecessor agency in the Justice Department, the Immigration and Naturalization Service (“INS”). See 8 C.F.R. § 274a.2. Under these regulations, employers must examine documents presented by the employee and attest to having done so on Section 2 of the 1-9 Form. § 274a.2(b)(l)(ii). The Section 2 attestation in the form as it existed at the time of the events in this case read:

*485 I attest, under penalty of perjury, that I have examined the document(s) presented by the above-named employee, that the above-listed document(s) appear to be genuine and to relate to the employee named, that the employee began employment on (month/'day/year)_ and that to the best of my knowledge the employee is authorized to work in the United States.

The regulations establish that documents presented by the employee must be originals. § 274a.2(b)(l)(v).

II. Alleged Violation of the INA

The ALJ found that ESSG failed to complete Section 2 of the 1-9 Form properly because the ESSG employee who signed the 1-9 Form did not examine the original employee documents personally and in the presence of the newly hired employee. Therefore, the ALJ held, the I-9 Form’s attestation was false.

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833 F.3d 480, 2016 U.S. App. LEXIS 14788, 100 Empl. Prac. Dec. (CCH) 45,612, 2016 WL 4254370, Counsel Stack Legal Research, https://law.counselstack.com/opinion/employer-solutions-staffing-group-ii-llc-v-office-of-the-chief-ca5-2016.