When onboarding new employees, most US employers are aware they must complete Form I-9 for every employee, but far fewer are prepared when the government comes calling. Given President Trump’s immigration directives, which focus heavily on enforcement efforts, the probability surrounding possible increases in site visits and surprise audits by various agencies including Immigration and Customs Enforcement (“ICE”) , maintaining accurate I-9 records is not an option, but a legal obligation with real consequences. Is your business ready?
What Is the I-9 and Why Does It Matter?
In essence, Form I-9 (“I-9”), officially titled Employment Eligibility Verification, is a crucial tool for ensuring that employers are hiring individuals who are legally permitted to work in the US and for maintaining proper employment records. An I-9 is required for every employee hired in the United States after November 6, 1986. Its purpose is to verify the identity of an employee and confirm their authorization to work in the country. Employers are required to complete the I-9 within three business days of the employee’s first day of work for pay. Both the employee and the employer (or authorized representative) must complete their respective sections, and the employee must submit an original document which establish both employment authorization and identity, or an original document which establishes employment authorization and a separate original document which establishes identity. Said documents must be reviewed in person by the employer or their representative. Photocopies of acceptable documents are not sufficient. Additionally, the immigration status of an employee may require employers re-verify and update an individual’s work authorization.
Maintaining Form I-9 Records
Employers must retain each employee’s I-9 for a specific period: either three years after the date of hire or one year after the date employment ends, whichever is later. Should a government agency, including ICE and the Department of Labor, request a business’ I-9 records, the form must be made available to government agencies within three business days of their request.
What Happens When Forms Are Missing or Incomplete?
Employers can face steep fines for each missing, incomplete, or incorrect I-9—even in cases where the employee was authorized to work. The government treats sloppy record keeping as a paperwork violation and the penalties are not trivial. As of 2024, fines for substantive violations range from $281 to $2,789 per form for a first offense. If you discover that an I-9 is missing or incomplete during an internal audit, you must act quickly. For current employees, complete a new I-9 using the current version of the form, include the original hire date in Section 2, and never backdate the form. Attach a signed explanation describing the corrective action taken. For former employees whose I-9s are missing but still within the one-year retention period, document your efforts to recover or recreate the form and retain that record.
How to Conduct an Internal I-9 Audit
Auditing your I-9s in-house is a smart way to reduce risk and demonstrate good faith compliance. Here’s a suggestion on how to approach it:
Start by gathering all current I-9 forms and ensure that one exists for each employee on the company’s payroll. Next, verify that each form is complete, with signatures, dates, and the required documentation clearly indicated. Pay close attention to Section 1 (completed by the employee on or before their first day of work) and Section 2 (completed by the employer within three business days of the start date). Make note of any errors, omissions, or outdated forms.
For any issues identified, correct them following USCIS guidance. Never alter the original form—if corrections are needed, they should be made in a different color ink, initialed, and dated. When a form is entirely missing or too flawed to correct, complete a new one and attach an explanatory memo. The goal is transparency and timely remediation, not hiding errors.
Also remember that I-9 forms should be stored separately from personnel files, ideally in a centralized and secure location. Employers often maintain two binders—one for current employees and another for former employees still within the retention period.
Employers may also consider signing up for E-Verify which is a free online tool, mandatory in some states and for certain employers, that allows employers to confirm an employee’s work authorization electronically, using information from the I-9. Operated by the Department of Homeland Security in partnership with the Social Security Administration, E-Verify compares I-9 data against federal databases to provide quick confirmation or a “tentative nonconfirmation” if there’s a mismatch.
Effect of Recent Government Actions and Work Authorization Revocations
President Trump’s tough stance on immigration and recent government actions have forced many immigrants, who were legally residing in the US and had authorization to work, to find themselves with revoked employment authorization. As the Trump administration revoked humanitarian parole programs for nationals of Cuba, Haiti, Nicaragua, and Venezuela (“CHNV”) and Temporary protected status (“TPS”) for nationals of Venezuela and Haiti foreign nationals who maintained valid work permits are now not able to legally work. Employers who have chosen to use E-Verify started receiving emails notifying them of a new E-Verify “Status Change Report” which was created to help them identify employees whose employment authorization was based on now-revoked EADs. However, employers who do not subscribe to E-Verify do not receive such reports and must remain vigilant of their work force’s eligibility to continue working in the US by conducting internal audits to ensure compliance with the law.
Final Thoughts
I-9 compliance may not be the most glamorous part of running a business, but it is vital for avoiding fines and reputational damage. A well-executed internal audit—combined with proper training, documented procedures, and optional tools like E-Verify—can place your business on solid ground.
If you have questions about conducting an audit, correcting old forms, or implementing E-Verify, our office is here to help. We work with employers to strengthen compliance and reduce risk in an increasingly enforcement-focused environment.