MARCH 15, 2011.Immigration Audit Takes Toll

Janitorial Firm Harvard Maintenance to Lose Over Half of Minnesota Work Force

By MIRIAM JORDAN

Harvard Maintenance Inc., a national janitorial company, will lose over half its Minnesota work force after an immigration audit, making it the second major business in that state to be hit by an Obama administration crackdown on employers of illegal immigrants.

The audit by U.S. Immigration and Customs Enforcement will result in about 240 workers losing their jobs, the Service Employees International Union said on Monday.

J. Daniel Duffy, an executive vice president of the closely held New York-based janitorial company, declined to comment.

Harvard Maintenance began issuing dismissal letters to employees in early March and is in the process of terminating workers, according to the SEIU, which represents the workers. Harvard Maintenance gave workers 90 days to rectify irregularities in their employment-eligibility documents before informing them they could no longer work there, the union said.

"You are not legally authorized to hold employment in the United States," said a company dismissal letter to an employee that was reviewed by The Wall Street Journal.

The Obama administration has made employers the cornerstone of its immigration crackdown that began in 2009.

Chipotle Mexican Grill Inc., which owns and operates nearly 1,100 outlets across the U.S., was recently forced to dismiss 450 workers in Minnesota amid an immigration investigation that began last year and has spread to other states.

"Our community is traumatized," said Javier Morillo, president of SEIU Local 26 in the Twin Cities. He estimated Harvard Maintenance has 350 workers in the state. Mr. Morillo said following the audit the union worked with Harvard Maintenance to keep the workers employed as long as possible.

A Mexican immigrant who gave her name only as Lucero said she believed all 25 of her co-workers at the office building where she was employed by Harvard Maintenance were undocumented. She and several of her co-workers were dismissed March 4, while others received termination letters March 11, she said.

The single mother of two said she had worked the overnight shift for four years, earning $13.22 an hour. "The salary was very good for me to support my family," she said.

It was unclear why Harvard Maintenance operations in Minnesota were targeted for an audit. The company boasts more than 3,500 employees nationwide. Stan Doobin, president of Harvard Maintenance, said in 2006 that the company entered the Minnesota market in 2003 and saw "remarkable growth in a very competitive market."

An Immigration and Customs Enforcement spokesman said the agency "can not confirm or deny the existence of ongoing investigations."

DeAnne Hilgers, an attorney who advises Minnesota companies, said the business community there was shocked by "what appears to be a surge in audits." She said 10 of her clients in the construction and restaurant industries were being investigated by ICE, a unit of the Department of Homeland Security. "These audits are of great consequence to their businesses" because they result in lost workers and thousands of dollars in fines, she said.

Last month, ICE said it was demanding that 1,000 companies across the country turn over their employment records for inspection.

Undocumented workers typically present fake Social Security numbers or use someone else's documents to secure jobs.

Companies that are audited typically receive a visit from local ICE agents who collect their employment records for review. They are then notified of irregularities, such as mismatches between names and Social Security numbers.

In January, ICE director John Morton announced his agency had opened an employment-compliance inspection center to bolster audits.

Harvard Maintenance was notified in November by ICE that its Minnesota operations would undergo an audit, Mr. Morillo said. Its janitors clean dozens of office buildings in downtown Minneapolis and St. Paul. The buildings boast multiple commercial, high-end tenants, according to the SEIU.

In the fiscal year that ended Sept. 30, ICE conducted audits of more than 2,740 companies, nearly twice as many as the previous year. The agency levied a record $7 million in civil fines on businesses that employed illegal workers. It is unclear how many workers have been let go as a result of the investigations.

About 11 million illegal immigrants live in the U.S., according to the Pew Hispanic Center, a nonpartisan research group. Without illegal immigrants, business executives in industries like construction, agriculture and restaurants say they would be forced to radically change how they operate.

—James Oberman contributed to this article
Write to Miriam Jordan at miriam.jordan@wsj.com

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