Officers visited more than 225 businesses in the past week, particularly car washes, with 122 receiving civil penalties for employing illegal workers, the Home Office said.
Yvette Cooper, the Home Secretary, said: "It is completely wrong that dodgy employers can work hand-in-glove with the smuggling gangs who risk people's lives to bring them here illegally and push them into off-the-books employment.
"These workers are sold complete lies by the gangs before being made to live and work in appalling conditions for a pittance.
"We are determined to put a stop to this, which is exactly why we have launched crackdowns such as this.
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