The Immigration and Naturalization Service reached a settlement yesterday with an Arlington Quality Inn for violations of the employer sanctions provisions of the Immigration Reform and Control Act, Commissioner Alan C. Nelson announced.

The hotel on North Courthouse Road, the first employer charged under the provisions of the new law, was assessed fines totaling $16,500 for violations that included continued employment of aliens not authorized to work under the act.

In the settlement reached yesterday and released by Nelson's office, the Quality Inn admitted employing aliens not authorized to work, as well as paperwork violations. It also agreed to pay $11,000 in lieu of the $16,500 infines, withdraw its request for a hearing before an administrative law judge, and to avoid further violations.

The INS had charged that the Quality Inn continued to employ 11 illegal aliens hired after Nov. 6, 1986, after learning that they lacked work authorization, and had failed to complete proper paperwork verifying their work eligibility in the United States.

In the settlement, INS dropped allegations involving three people and accepted an assessment of $750 per undocumented worker for a total of $6,000, plus $5,000 in fines for the paperwork violations.

Arlington Quality Inn officials referred questions to corporate headquarters in Silver Spring. Officials there could not be reached for comment.

Robert B. Neptune, district director of the Washington district of the INS, said that the agency is continuing to visit employers throughout Virginia and the metropolitan area to explain the Employer Sanctions Law and to urge voluntary compliance with its provisons.

The original investigation of the Quality Inn came as the result of complaints by U.S. citizens who were aware the employer was hiring illegal aliens.