The Growing Importance of I-9 Audits
As scrutiny on the U.S. labor market intensifies, employers are facing increased pressure to comply with employment eligibility requirements. Among these, I-9 audits have become a key focus. Here’s an elevated look at why these audits are becoming more frequent, the purpose of I-9 compliance, and the significant risks of non-compliance.
Why I-9 Compliance is Under Increased Examination
The I-9 form, which verifies an employee’s eligibility to work in the United States, is under greater examination by federal agencies. The Department of Homeland Security (DHS) and U.S. Immigration and Customs Enforcement (ICE) have escalated enforcement, conducting audits across businesses of all sizes. This increased focus is part of broader efforts to combat illegal immigration, ensure workforce eligibility, and promote fair labor practices. Non-compliance can lead to severe penalties and long-lasting reputational damage, making I-9 compliance a critical concern for employers.
What is the I-9 Form and Its Purpose?
The I-9 form is a mandatory federal document that all U.S. employers must complete for every new hire. It’s used to verify an employee’s identity and their legal right to work in the U.S. The form requires basic details about the employee, such as their name, date of birth, address, and employment authorization. The form must be completed within three days of the employee’s start date and retained for a set period after their employment ends.
Employer Responsibilities
Employers must:
Verify Eligibility: Complete and retain Form I-9 for each new hire.
Avoid Discrimination: Do not discriminate based on citizenship, national origin, or immigration status.
Prevent Document Abuse: Avoid requesting unnecessary documents or rejecting valid ones.
Refrain from Retaliation: Do not retaliate against employees asserting their rights.
The Risk of Non-Compliance
Failing to comply with I-9 regulations can have severe repercussions. Here are some of the most significant risks:
Fines and Penalties: Employers can face significant fines for incomplete or inaccurate I-9 forms, with penalties escalating for repeated violations or knowingly hiring unauthorized workers. These fines can start at hundreds of dollars per violation and reach thousands per violation; and criminal charges may apply for willful non-compliance.
Reputational Damage: A failed I-9 audit can lead to public scrutiny, damaging your company’s reputation. This can deter customers, business partners, and potential employees, and negatively affect employee morale, making it harder to attract talent and maintain trust.
Loss of Business: Severe I-9 violations can result in losing government contracts or restrictions on business operations. The company may also struggle to expand or establish new partnerships, as clients and investors may avoid businesses with compliance issues.
Legal Consequences: Employers who knowingly employ unauthorized workers may face harsher legal actions, including criminal charges in extreme cases.
What to Expect During an I-9 Audit
I-9 audits are typically carried out by U.S. Immigration and Customs Enforcement (ICE) or the Department of Homeland Security (DHS) and can occur either randomly or as part of a broader investigation into other compliance issues. When an audit is initiated, employers will generally receive a formal notice of inspection and be given a limited timeframe—usually three business days—to submit the necessary I-9 forms for all employees. During the audit, the agency will review several key aspects of the I-9 documentation process:
Accuracy: The agency will ensure that the details provided on the I-9 forms, such as employee names, social security numbers, dates of birth, and citizenship status, are accurate and consistent with the employee’s official records.
Completion: The auditors will check that all required fields on the I-9 forms are properly filled out and signed, both by the employee and the employer. Missing signatures or incomplete information can raise red flags during the audit.
Retention: Employers must demonstrate that I-9 forms are being retained for the legally required duration—three years from the date of hire or one year after the employee’s termination, whichever is later.
If discrepancies, incomplete forms, or non-compliant practices are discovered during the audit, employers may face penalties ranging from fines to more severe consequences. Penalties can escalate based on the severity of the violations and whether they are determined to be willful. In more extreme cases, employers may be required to terminate unauthorized workers or face additional legal repercussions.
To minimize risks, it is crucial for employers to have a thorough and up to date I-9 compliance process in place, ensuring that all documentation is accurate, complete, and retained appropriately. Regular internal audits and training for HR staff can help prevent issues before they arise and protect your business from potential penalties.
How to Prepare for an I-9 Audit
Here are essential steps to help ensure you’re ready for an I-9 audit:
Review and Correct I-9 Forms:
Ensure Accuracy: Review all I-9 forms to ensure each section is completed correctly, has been completed in full and that the appropriate documents were provided at time of hire.
Timely Updates: If any information changes during employment (e.g., name or status), update the I-9 form and retain the revised version.
Proper Storage: Store I-9 forms securely and ensure they’re easily accessible for audits. Retain forms according to retention guidelines, typically for three years after hire or one year after termination, whichever is later.
2. Train HR Staff:
Ongoing Education: Train HR staff regularly on I-9 form completion, verifying employment eligibility, and reviewing acceptable documentation.
Stay Current on Regulations: Keep HR updated on changes to I-9 regulations, including document lists, completion processes, and new tools like E-Verify, to ensure ongoing compliance.
Provide Resources: Provide HR with tools and resources, such as checklists and training materials, to navigate I-9 compliance, including handling exceptions, incomplete forms, and situations like remote workers or specific visa types.
3. Organize Records:
Create a Centralized System: Create a centralized system for tracking and storing I-9 forms, using either a physical filing system or an electronic document management system for easy access.
Implement a Retention Policy: Establish a retention schedule for I-9 forms to ensure compliance with legal timelines, avoiding both unnecessary clutter and premature document destruction.
Audit-Ready Storage: Store I-9 records for easy retrieval during an audit to quickly provide requested forms and avoid penalties.
4. Seek an Expert’s Assistance:
Consult an Expert: Consult an I-9 expert, or an immigration attorney, if you have concerns about compliance or need guidance on complex issues such as non-standard visas or documentation discrepancies.
Review Internal Processes: Have your I-9 expert assess your process to ensure it aligns with federal regulations and pinpoint any potential risks or areas for improvement.
Audit Preparedness: An I-9 expert can perform an internal audit of your I-9 records and recommend corrective actions to minimize the risk of penalties or fines.
Conclusion
The trend toward more stringent I-9 compliance is not going away. With audits becoming more frequent and penalties escalating, it’s vital for employers to prioritize I-9 compliance now to avoid costly mistakes in the future. Taking proactive measures will protect your business from financial and reputational harm while ensuring that your workforce remains legal and secure.
Feeling overwhelmed?
Navigating I-9 compliance can be overwhelming, but Skywalk Group is here to help. Our HR experts can guide you through the I-9 process, assist with internal audits, and prepare you for potential audits from ICE or DHS. Contact us today to ensure your business stays ahead of the curve in 2025 and beyond!
By: Breanna Treimer
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