A restaurant could be fined up to £30,000 after immigration officers swooped on the premises.
Three Bangladeshi men have been arrested on suspicion of working illegally at the Curry Leaf restaurant, Marine Road, Morecambe.
Two of the men, aged 34 and 53, are suspected of overstaying their visas and a third man, aged 33, is believed to have entered the country illegally.
The restaurant could now face fines of up to £10,000 per worker unless they can prove the correct right-to-work checks were carried out.
All men must report to the Home Office while their cases are considered and could face deportation. The arrests were made on Thursday.