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Though the Obama administration has dropped the "no match" rule that created a safe harbor for employers who lay off workers whose Social Security numbers don't match their names, the layoff route is still the route of choice for employers who get caught with illegals on their workforce.
Such is the case with American Apparel in Los Angeles. A recent audit found 1,600 employees who were illegal immigrants and another 200 with various documentary problems, including faked SSNs. According to the Los Angeles Times, the company will now lay off 1,500 illegal workers, while promising to consider rehiring them if they get the immigration status straightened out. The number represents 10 percent of the overall workforce.
Though it has dropped the "no match" rule, the Obama administration has actually stepped up workplace inspections for illegal immigrants, shifting away from the Bush administration's strategy of conducting immigrant raids and rounding up illegals for deportation.
The result, however, is a string of American Apparel-like stories.
Employers need to stay in compliance with the provisions of the Immigration Reform and Control Act (IRCA) of 1986 by certifying the work-eligible status of all their employees through use of the I-9 form (and in certain situations the E-Verify system). To help with the process of certifying worker eligibility, Personnel Concepts has developed a comprehensive but easy-to-follow I-9 Compliance Kit. Get yours today.
Practical articles on HR, Safety, compliance, and people operations—written for real businesses, not legal textbooks.
Latest EEOC Enforcement Data Shows Increased Pre-Litigation Activity
The U.S. Equal Employment Opportunity Commission (EEOC) recently released its FY 2025 performance and enforcement results. In a news release dated April 6th, 2026, the agency reported increased monetary recoveries for victims of employment discrimination and increased enforcement activity overall....
EEOC Pens Letter to Companies Regarding Title VII Compliance and DEI Initiatives
The Equal Employment Opportunity Commission (EEOC) recently issued a letter to 500 of the largest employers in the United States regarding Title VII compliance and potentially "illegal" DEI initiatives. Notably, the document was drafted for the chief executive officers, general counsel, and board...
NLRB Officially Reinstates Previous 2020 Joint Employer Standard
On February 26th, 2026, the National Labor Relations Board (NLRB) officially reinstated its 2020 Joint Employer standard. Specifically, to do so, the agency needed to formally withdraw a 2023 Joint Employer standard. That final rule was to go into effect on February 26th, 2024.
OSHA Releases New Job Safety and Health Workplace Poster
The Occupational Safety and Health Administration (OSHA) has released a new workplace job safety and health notice. Specifically, the OSHA Cares Job Safety and Health poster informs workers about their rights under the Occupational Safety and Health (OSH) Act. Per OSHA’s poster page, employers do...
On February 26th, 2026, the Department of Labor (DOL) announced a proposed rule designed to help determine independent contractor status. Overall, the new independent contractor rule would help employers better understand when a worker is an employee. Conversely, the rule will allow employers to...