30 WESTERN PALLET
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As the pallet and wood packaging industry continues to grapple with labor shortages, immigration compliance is increasingly becoming a critical concern. A recent Western Pallet Association (WPA) webinar, “The State of Immigration Policy and Enforcement,” featured Los Angeles-based immigration attorney Rocio La Rosa. She shed light on the evolving landscape of immigration law and its practical impact on employers in the sector.
La Rosa emphasized the growing discon- nect between federal enforcement, chang- ing state laws, and on-the-ground workforce realities. “You can think of immigration compliance as part of your risk manage- ment strategy, just like you think about workers comp or OSHA compliance,” La Rosa said. “It’s about protecting your company, not just checking a box.”
ICE Audits on the Rise
Immigration and Customs Enforcement (ICE) audits of I-9 employment eligibility forms have significantly increased since 2018, La Rosa noted. Companies that fail to comply can face steep penalties, even if the violations are unintentional.
“They’re not just going after the bad actors anymore,” La Rosa said. “They’re doing I-9 audits in all industries. Logistics and other labor-intensive sectors are being looked at closely.”
One misstep employers often make is accepting incomplete or inaccurate I-9 forms. “If your HR person doesn’t know what a valid green card looks like or what documents are acceptable, that’s a prob- lem,” she said. “You’re not a document expert, you’re not a forensic expert, but you are expected to review the documents and make sure they reasonably appear to be genuine and relate to the employee.”
In one example La Rosa shared, a client company underwent an ICE audit and was hit with over $100,000 in potential fines due to paperwork errors. Although many of the fines were eventually reduced, the cost in time, legal fees, and disruption was substantial.
E-Verify: Helpful, Not Foolproof
Many employers believe using E-Verify shields them from liability. “That’s a dangerous assumption,” La Rosa warned. “E-Verify is only as good as the information it’s fed. If a worker presents fake docu- ments that pass E-Verify, and it later turns out they weren’t authorized to work, the employer may still be liable.”
Still, she acknowledged that using E-Verify can demonstrate good faith during an audit and may mitigate fines. “It's one piece of the compliance puzzle,” she said.
La Rosa advised employers to conduct internal I-9 audits annually, ideally with the help of counsel or a trained HR professional. “The worst time to find out you’ve been doing it wrong is when ICE is standing in your lobby.”
Common Pitfalls in the Pallet Sector
La Rosa identified several immigration compliance vulnerabilities common in the pallet and wood packaging industries:
High turnover and informal hiring: “Some companies rely on word-of-mouth referrals or hire people without proper documentation checks. That’s risky,” she said.
Lack of training: HR staff often don’t receive adequate training on how to complete and store I-9s properly.
Record retention issues: Employers must retain I-9s for a specific period, but many toss them too early, or keep them too long without reason.
“Just because you’re a small business doesn’t mean you’re not subject to enforcement. ICE audits mom-and-pop shops too,” she noted.There’s no safe harbor.”
Reform and the Uncertain Path Forward
While immigration reform continues to stall in Congress, La Rosa noted that states like California are taking matters into their own hands. New labor laws now place additional pressure on employers to ensure not only legal hiring practices but also the safe and equitable treatment of immigrant workers.
“There’s growing concern around retaliation,” she said. “If a worker complains about conditions or pay and is then threatened with immigration-related consequences, that’s a huge red flag.”
One area to watch is the increasing enforcement of state labor laws in parallel with federal immigration audits. “The days of flying under the radar are over,” La Rosa said.
What Employers Can Do Now
Immigration enforcement is ramping up across multiple fronts, and La Rosa emphasized that “employers need to be proactive, not reactive.” Here are five concrete steps pallet businesses can take now to reduce risk and prepare for possible audits or visits:
1. Prepare for an I-9 Audit or Investigation
“Make sure your I-9 forms are ready,” La Rosa said. “It’s often the first thing they ask for.” She advised companies to review their I-9 files regularly, ensure all sections are complete, and that documentation is properly stored — ideally separate from general HR files. Employers should also conduct internal audits or engage third-party consultants to review forms and correct technical issues.
2. Maintain a Centralized Database of Employee Information
Keeping a secure, up-to-date database can save time and reduce panic in the event of enforcement action. La Rosa recommended documenting each employee’s immigration status, employment authorization dates, and copies of related documents (such as work permits or visa approvals). “It’s better to be over-prepared than scrambling to pull files while an agent is standing in your lobby,” she noted.
3. Establish and Train on Enforcement Protocols
Develop clear written protocols for how to respond to site visits by ICE or other federal agents. These should cover who is authorized to speak with agents, how to verify warrants, and what steps to take if asked for access to non-public areas or employee records. “Training your staff is essential,” La Rosa said. “They should know what to do before anyone knocks on the door.”
4. Use Signage Strategically
Posting signs that designate “Private — No Entry Without Permission” in non-public work areas is both a legal and practical defense. “Unless an officer has a valid warrant, you do not have to allow them into private areas,” La Rosa explained. These signs reinforce that boundary and help avoid misunderstandings during a tense interaction.
5. Evaluate Sponsorship Options Thoughtfully
While not appropriate for every position, sponsoring a valued employee for legal status — through H-2B, TN, or green card processes — can be a strategic investment. “It’s a longer game,” La Rosa said, “but for the right employee, it can be worth it.” She urged companies to consider this only after weighing legal costs, wait times, and the employee’s fit within the long-term business plan.
Finally, she stressed the need to challenge internal assumptions. “Don’t assume you can’t hire someone because of their immigration background,” she urged. “Talk to a professional. The paperwork may seem complicated, but don’t close the door without understanding what’s possible.”
By acting now, at the local level, with good advice, La Rosa believes pallet companies can meet urgent labor needs and become part of a more inclusive and resilient workforce strategy.
Navigating Workforce Challenges: Immigration Realities for the Pallet Industry