Macy's Agrees to Pay Thousands to Settle DOJ's Immigration-Related Discrimination Claims

Author: Beth P. Zoller, XpertHR Legal Editor

September 12, 2013

The US Department of Justice (DOJ) announced that it reached a settlement with Macy's resolving allegations that Macy's discriminated against work authorized immigrant employees during the Form I-9 employment eligibility reverification process.

Specifically, the DOJ alleged that Macy's violated the antidiscrimination provisions of the Immigration and Nationality Act (INA) by engaging in unfair documentary practices against work authorized immigrant employees during the reverification process.

The INA explicitly prohibits employers from discriminating during the employment eligibility verification or reverification process based on immigration status or national origin and treating such workers differently by requiring them to provide more or different documents or limiting their choice of documents to show employment eligibility. See +8 U.S.C. §1324b (a) (6). The DOJ alleged that as a result of Macy's unfair documentation practices, the employees suffered economic harm and lost wages or seniority

As part of the settlement Macy's will be required to:

  • Pay $175,000 in civil penalties to the US.
  • Create a $100,000 backpay fund to compensate workers who lost wages or seniority as a result of Macy's unfair documentation practices.
  • Revise its employment eligibility reverification policies and procedures.
  • Train HR personnel on the INA's antidiscrimination procedures.

Additionally, Macy's employment eligibility verification practices will be subject to monitoring and reporting requirements for a period of two years.

This settlement highlights that it is critical for employers to follow the proper procedures during the reverification process. Employers should accept all genuine documents or combination of documents that satisfies the legal requirements of Form-I-9 and avoid requiring more or different documentation.