The Trump administration’s expanded immigration enforcement is forcing U.S. employers to stop turning a blind eye to the employment of illegal immigrants.
Since 1986, federal law has required businesses to verify the identity and work authorization of individuals they hire using Form I-9. After years of lax oversight, the federal government under President Donald Trump has started ramping up audits of businesses’ employment records, causing many companies to scramble to comply with immigration rules, according to the Financial Times.
U.S. Immigration and Customs Enforcement (ICE) has significantly increased its scrutiny of businesses’ employment verification records, requiring companies to produce I-9 forms and supporting documents within three days of receiving notification of an audit, according to the Financial Times. More than a dozen business leaders and their immigration attorneys told the outlet that they are in “I-9 hell” as they rush to find and correct mistakes on the forms in anticipation of a possible inspection.
In one of the more high-profile enforcement actions, ICE fined three businesses in Denver a combined $8 million in April for hiring over 100 unauthorized workers. In another case, a San Diego powder-coating company manager was sentenced to probation in June after pleading guilty to employing illegal immigrants, including three who were found living in a company warehouse where military components were being stored.
“The employment of unauthorized workers undermines the integrity of our immigration system and puts law-abiding employers at a disadvantage,” ICE Special Agent Steve Cagen said following the enforcement operation in Denver. “These penalties reinforce our commitment to uphold the law and promote a culture of compliance.”
Increased audits under the Trump administration have prompted some companies to conduct their own internal reviews, according to the Financial Times. One executive at an Atlanta tech firm employing 700 people told the outlet that an internal audit led to the dismissal of employees with invalid work authorizations.
In the hotel industry, which employs a large immigrant workforce, many employers are becoming more cautious in verifying immigration status to avoid potential penalties. The industry saw a 36% increase in background checks during the first half of 2025 compared to the same period last year, Reuters reported.
“Companies are certainly far more cognizant of that than they’ve ever been, and they don’t want to be caught up in or be accused of lax hiring practices when it comes to verification of immigration status,” Patrick Scholes, Truist hotel equity analyst, told Reuters.
White House Spokesperson Abigail Jackson also pointed to the “victims of labor exploitation” who have been “rescued” as a result of the administration’s immigration crackdown. During recent ICE raids on two marijuana farms in California, authorities found 14 juveniles — eight of whom were unaccompanied minors — among 361 illegal immigrants.
“The Trump Administration is focused on protecting the American workforce, ending instances of labor exploitation or trafficking, and working with American employers to ensure they have the legal workforce they need to be successful,” Jackson said. “The Trump Administration will continue acting in the best interest of Americans’ safety and success.”
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