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The interesting thing about "penalties" is in some industries it's against the law and can land you in really deep water. In other industries it's pretty normal. For example, penalties in construction contracts are not uncommon. However, if you start docking employees at your local retail store because they were chewing gum, DoL gets a little pissed off.
Out of curiosity, was the ID in question still valid? I'm asking because it's clearly 10 years old and 10 year IDs are not common (though possible, Arizona for example has a ridiculous timeframe.) To me she looks to be the same person as her ID, so I'm not quite sure why else someone would have flagged her unless her ID is expired. And if that was the case, that's an easy fix.
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