Victims of unfair competition at the hands of employers using illegal aliens may be able to recover treble damages in addition to stopping the unlawful activity. The possibility for such relief arises out of the decision of the United States Court of Appeals for the Second Circuit, reversing the lower court's dismissal of a RICO (Racketeer Influenced Corrupt Organizations Act) claim, in Commercial Cleaning Services, LLC v. Colin Service Systems, Inc.
Commercial, a cleaning contractor, alleged that it was a victim of a pattern of racketeering activity engaged in by Colin. Specifically, Commercial alleged that Colin systematically hired illegal aliens in violation of the Immigration and Naturalization Act, took advantage of such illegal aliens by paying them substandard wages, and thereby gained an unlawful competitive advantage that made it possible for Colin to underbid Commercial and others who complied with all legal requirements. According to Commercial's complaint, Colin paid