Complying with the NEW I-9 and E-Verify Regulations Under the Trump Administration: Impacts on Costa Oil – 10 Minute Oil Change Franchisees

Under the Trump Administration, significant changes were made to the enforcement of immigration laws, including updates to I-9 compliance and E-Verify processes. These changes have had a direct impact on businesses like Costa Oil – 10 Minute Oil Change, which employ staff in a fast-paced, customer-focused environment. Understanding and adhering to these regulations is essential to avoid penalties and ensure a smooth hiring process.

What Are I-9 and E-Verify?

Form I-9 is a federal requirement for all U.S. employers to verify the identity and employment authorization of individuals they hire. Employers must complete this form for every employee hired after November 6, 1986.

E-Verify, on the other hand, is an electronic system that checks information from an employee’s I-9 against government databases to confirm employment eligibility. While E-Verify is federally voluntary, many states mandate its use for certain businesses.

Key Updates Under the Trump Administration

Increased Audits and Enforcement
- Immigration and Customs Enforcement (ICE) increased workplace audits, targeting businesses suspected of employing unauthorized workers.
- Costa Oil franchisees must be prepared for unannounced I-9 audits, which may include a thorough review of employee documentation and records.
Higher Penalties for Non-Compliance
- Fines for I-9 violations rose significantly, ranging from $230 to over $4,000 per form for substantive errors.
- Penalties for knowingly hiring unauthorized workers also increased, making compliance a financial priority.
Updated I-9 Forms
- Employers must use the most recent version of the I-9 form, which includes new fields and clarifications. Using outdated forms can result in fines.
State-Specific E-Verify Mandates
- Certain states, such as Alabama and Arizona, require all employers or specific industries to use E-Verify.
- Franchisees in these states must integrate E-Verify into their hiring process to avoid state penalties.

How Does This Impact Costa Oil Franchisees?

1. Increased Responsibility for Documentation

Franchisees must ensure all I-9 forms are correctly completed and stored. This includes:

Verifying that employees complete Section 1 by their first day of work.
Reviewing original documents presented by employees for Section 2 within three business days of their start date.
Avoiding discrimination during the verification process while staying compliant.

2. Enhanced Risk of Audits

Costa Oil franchisees should prepare for the possibility of ICE audits by conducting regular internal audits. Retaining accurate and complete records can protect against fines and legal action.

3. Training for Managers

Managers and hiring personnel must be trained on the latest regulations to avoid errors in the hiring process. This includes understanding how to respond to “Tentative Nonconfirmations” (TNCs) from E-Verify and providing employees with a clear path to resolve such issues.

4. Increased Costs of Non-Compliance

Failure to comply with I-9 and E-Verify regulations can result in significant financial penalties. For a small business or franchisee, these fines can severely impact profitability. Staying proactive is critical to minimizing these risks.

Best Practices for Compliance

Stay Updated on Regulations
- Regularly check for updates to I-9 forms and E-Verify requirements. The most recent I-9 form is available on the U.S. Citizenship and Immigration Services (USCIS) website.
Conduct Regular Audits
- Perform periodic internal audits to ensure all forms are accurate and complete. Retain forms for at least three years after the hire date or one year after termination, whichever is later.
Use E-Verify (If Required or Recommended)
- In states mandating E-Verify, enroll in and utilize the system as part of the hiring process. Even in states where it’s optional, it can be a valuable tool for ensuring compliance.
Train Your Team
- Provide ongoing training for managers and hiring personnel on how to complete I-9 forms, handle E-Verify, and respond to audits or inquiries from ICE.

Benefits of Compliance for Costa Oil Franchisees

Avoiding Penalties: Compliance prevents costly fines and legal action, protecting your business’s bottom line.
Strengthened Reputation: Demonstrating compliance with federal and state laws enhances your franchise’s reputation as a responsible employer.
Streamlined Hiring Process: Proper use of E-Verify can expedite the hiring process, ensuring your franchise is always fully staffed and operational.

Conclusion

Complying with the updated I-9 and E-Verify regulations under the Trump Administration is not optional—it’s a critical part of running a successful Costa Oil franchise. By understanding the updates, implementing best practices, and staying vigilant, franchisees can mitigate risks, avoid penalties, and focus on delivering fast and reliable oil change services to their customers.

If you need support or guidance, consider consulting with a legal or HR professional familiar with these regulations to ensure your operations remain fully compliant.