What are the potential penalties Benihana could face for employing unauthorized workers?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
to a disruption in our work force. Although we require all of our new employees to provide us with the government-specified documentation evidencing their employment eligibility, some of our employees may, without our knowledge, be unauthorized workers. Unauthorized workers are subject to seizure and deportation and may subject us to fines, penalties or loss of our business license in certain jurisdictions. Additionally, a government audit could result in a disruption to our workforce or adverse publicity that could negatively impact our brand and our use of E-Verify and/or potential for receipt of letters from the Social Security Administration requesting
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, if a Benihana restaurant employs unauthorized workers, the restaurant could face several penalties. Even though Benihana requires new employees to provide documentation proving their eligibility to work, some employees may be unauthorized without Benihana's knowledge.
Unauthorized workers are subject to seizure and deportation. Benihana could be subject to fines, penalties, or even the loss of its business license in certain jurisdictions if unauthorized workers are employed.
Additionally, a government audit could disrupt Benihana's workforce or cause adverse publicity, which could negatively impact the brand. The use of E-Verify and potential receipt of no-match letters from the Social Security Administration could make it more difficult to recruit and retain qualified employees.