Last Updated on January 24, 2025 by MyHRConcierge

Employers should be aware of workplace enforcement actions, including worksite raids and I-9 compliance audits- which are going to and have become an increasingly pressing issue- in response to undocumented workers. We can see the importance of this through cases such as the 2019 Central Mississippi ICE raids, which occurred in President Trump’s first term.

If organizations are unprepared, these events can lead to severe financial penalties, operational disruptions, and lasting reputational damage. By understanding the complexities of I-9 compliance and proactively addressing potential vulnerabilities, employers can safeguard their businesses while maintaining a lawful and ethical workplace. This blog post offers practical insights and strategies to navigate these situations effectively.

Recent updates to ICE enforcement guidance and Form I-9 procedures have heightened the importance of maintaining accurate employment eligibility records. Employers now face increased scrutiny during audits, and certain errors that were previously considered technical may result in more significant penalties. As enforcement priorities continue to evolve, understanding current I-9 requirements is more important than ever.

Understanding I-9 Audits and Compliance

The Form I-9 verifies an employee’s identity and authorization to work in the United States (U.S.). Failing to maintain accurate and compliant I-9 records can result in severe penalties. The Immigration Reform and Control Act of 1986 is the law that “mandates employers to facilitate the form I-9. That’s part of the hiring process that is absolutely required by all employers, and governs the process of ensuring that an individual is authorized to work in the U.S.,” notes Principal and Co-Founder of MyHRConcierge, John Yerger, SHRM-SCP.

In recent years, federal agencies have placed greater emphasis on I-9 enforcement. Updated ICE inspection guidance has expanded the types of errors that may be treated as substantive violations, increasing potential liability for employers that fail to maintain accurate records. As a result, organizations should view I-9 compliance as an ongoing process rather than a one-time hiring requirement.

Because Form I-9 paperwork penalties can range from hundreds to thousands of dollars per violation, employers should conduct regular internal audits and review their onboarding processes to help identify compliance issues before receiving a Notice of Inspection (NOI).

What Happens During an ICE Form I-9 Inspection?

Most ICE audits begin when an employer receives a Notice of Inspection (NOI). Once served, employers generally have three business days to produce the requested Forms I-9 and supporting documentation. ICE may also request payroll records, lists of active and terminated employees, business licenses and corporate formation documents.

After reviewing the records, Homeland Security Investigations (HSI) auditors determine whether technical, procedural or substantive violations exist. If technical or procedural errors are identified, employers are generally given at least 10 business days to correct them. However, substantive violations and uncorrected technical violations may result in monetary penalties.

Understanding this process before receiving an NOI can help employers respond quickly and reduce compliance risks.

Form I-9 Inspection Process According to ICE Website

Key Aspects of I-9 Compliance

• Timely Completion: Ensure Section 1 is completed by the employee no later than their first day of employment and Section 2 is completed by the employer within three business days of the employee’s start date.
• Retention Requirements: Maintain I-9 forms for all current employees and for at least three years after an employee’s date of hire or one year after their employment ends, whichever is longer.
• Purging Old I-9 Forms: Following the necessary retention period, a less discussed but equally crucial aspect of this process is purging old Form I-9s. Regularly clearing outdated forms is essential for organizational efficiency, legal compliance and protection against unnecessary risks.
• Re-Verification: Monitor work authorization expiration dates when applicable and complete Supplement B for reverification or rehire situations as required.

Common Mistakes in the I-9 Process

Even minor errors on I-9 forms can lead to significant fines. In fact, according to Sue Kohlwey of the USCIS’s Outreach Branch, 76% of paper I-9s contain at least one error that could result in a fine from Immigration and Customs Enforcement (ICE). Common mistakes include:

• Incomplete Sections: Missing information in any section of the form.
• Late Completion: Filling out forms outside the prescribed timelines.
• Improper Corrections: Making corrections improperly, such as using white-out instead of crossing out errors and initialing changes.
• Failure to Monitor Expiration Dates: Neglecting to track and reverify work authorization for employees with expiring documents.
• Missing employee or employer signatures.
• Failure to retain required I-9 records.
• Failure to timely complete reverification requirements.

Implementing a structured process for completing and reviewing I-9 forms can mitigate these risks. The stakes have increased in recent years as ICE has broadened its interpretation of certain paperwork violations. Errors involving missing information, document examination procedures, reverification requirements and electronic I-9 compliance may now carry greater consequences than employers experienced in the past.

Technical vs. Substantive Violations

Not all Form I-9 errors are treated equally. Technical or procedural errors may be correctable if identified during an audit, while substantive violations generally involve missing required information, untimely completion, missing signatures or failures to verify employment authorization properly. Understanding this distinction can help employers prioritize compliance efforts and reduce potential liability.

Errors ICE Considers Substantive Violations

Recent ICE guidance identifies several violations that may be considered substantive and subject to penalties, including:

• Failure to prepare a Form I-9.
• Failure to present Forms I-9 during an inspection.
• Failure to timely complete Sections 1 or 2.
• Missing employee attestations or signatures.
• Missing employer certifications or signatures.
• Failure to properly record document information in Section 2.
• Failure to complete reverification when required.
• Improper use of remote verification procedures.
• Failure to comply with electronic I-9 system requirements.

Because substantive violations may result in penalties without an opportunity for correction, employers should conduct regular reviews of their I-9 processes and records.

Identifying and Handling Fraudulent Documents

Employers must examine documents provided by employees to establish identity and employment eligibility. Yerger states that employers “have to take reasonable efforts to determine the authenticity and the genuineness of that document related to what the individual is presenting. So, employers have to make reasonable, good faith judgment calls.”

While employers are not expected to be document experts, they are required to make reasonable, good-faith determinations regarding whether documents appear genuine and relate to the employee presenting them.

Tips for Verifying Documents

• Know What to Look For: Familiarize yourself with the appearance and security features of common documents like passports, permanent resident cards, and driver’s licenses. The Handbook for Employers M-274 provided by the UCIS is a great resource for this task.
• Use E-Verify: Use E-Verify where applicable to add an additional layer of verification. It is important to note that E-Verify requirements can vary by state, with some mandating its use for all employers and others limiting the requirement to public employers or contractors.
• Avoid Discrimination: Follow anti-discrimination provisions by treating all employees equally, regardless of national origin or citizenship status.

If you suspect a document is fraudulent, consult legal counsel before taking action to ensure compliance with anti-discrimination laws. Employers utilizing E-Verify should also ensure their systems and processes remain current with federal requirements and terminology updates. Periodic reviews of electronic onboarding and employment verification procedures can help identify compliance gaps before they become audit issues.

Remote Verification

For decades, employers were required to physically inspect identity and work authorization documents. During the COVID-19 pandemic, the Department of Homeland Security (DHS) temporarily allowed remote review procedures, which eventually evolved into a permanent alternative procedure for qualifying employers. This alternative procedure is available for employees hired on or after August 1, 2023.

To participate in the remote examination of Form I-9 documents under the DHS-authorized alternative procedure, employers must meet the following criteria:

• Be enrolled in E-Verify.
• Examine and retain copies of all documents.
• Conduct a live video interaction with the employee.
• Create an E-Verify case if the employee is a new hire.

Employers should also ensure they properly document use of the alternative procedure on Form I-9. ICE’s March 2026 guidance specifically identifies failures related to remote document examination procedures and electronic I-9 systems as potential substantive violations.

Employers using electronic I-9 systems should periodically review system functionality, retention practices, electronic signatures and audit trails to ensure compliance with DHS requirements. Deficiencies in electronic recordkeeping may result in violations during an ICE inspection.

Potential Outcomes of an I-9 Audit

Following an inspection, ICE may issue several different notices depending on its findings.

• Compliance Letter: A Compliance Letter, also known as a Notice of Inspection Results, informs an employer that it is compliant with applicable employment eligibility verification requirements.
• Notice of Technical or Procedural Failures: This notice identifies correctable errors and provides the employer with a designated correction period, generally at least 10 business days.
• Warning Notice: A Warning Notice may be issued when violations are identified but ICE believes future compliance is likely. Employers receiving a Warning Notice may still be subject to future inspections.
• Notice of Intent to Fine (NIF): A Notice of Intent to Fine may be issued for substantive violations, uncorrected technical errors, knowingly hiring unauthorized workers or continuing to employ unauthorized workers. Employers that receive a Notice of Intent to Fine have the right to request a hearing before the Office of the Chief Administrative Hearing Officer (OCAHO). In many cases, settlement discussions may occur before formal administrative proceedings begin.

In some audits, ICE may issue a Notice of Suspect Documents or a Notice of Discrepancies. A Notice of Suspect Documents indicates that ICE believes certain employee documentation may not be valid for employment authorization purposes. A Notice of Discrepancies indicates ICE was unable to determine an employee’s work authorization status based on the records reviewed. In either situation, employers may be required to notify affected employees and provide them an opportunity to present additional documentation.

Ensuring Compliance and Protecting Your Business from Worksite Raids

Worksite raids can occur without warning, leaving unprepared employers vulnerable. To minimize risks, employers should take proactive steps. Conducting regular internal audits ensures that hiring and employment documentation comply with federal standards; this includes spot-checking I-9 forms and other records. Training HR personnel and managers on procedures, including interactions with immigration authorities, is crucial. Establishing protocols for enforcement actions, such as designating a point of contact for legal inquiries, can streamline responses. Additionally, engaging legal counsel to provide guidance and represent your business during potential raids ensures expert oversight and protection during such events.

Steps to Ensure Compliance:

• Develop a Written Policy: Create clear policies outlining I-9 completion, retention and reverification procedures.
• Provide Training: Regularly train HR personnel on I-9 requirements and updates to immigration laws.
• Conduct Periodic Audits: Identify and correct errors in your I-9 forms through routine audits.
• Stay Updated: Monitor changes in immigration laws and regulations to adapt your practices accordingly.

Risks of Non-Compliance:

• Financial Penalties: Fines for I-9 compliance violations range from hundreds to thousands of dollars per violation.
• Legal Action: Employers found to have knowingly employed unauthorized workers may face additional sanctions, including potential debarment from federal contracting opportunities.
• Reputational Damage: Worksite raids or penalties can harm your business’s public image, leading to loss of customers and employees.

Yerger emphasizes that “all employers are required to ensure that their employees are authorized to work in the U.S. That’s just part of (an employer’s) responsibility. And what this does is that it protects businesses- it protects you as an employer from potential penalties, fines, civil, and even potentially, criminal, charges.”

Preparing Before an Inspection Is Critical

With ICE expanding the scope of substantive violations and increasing scrutiny of I-9 compliance, employers should not wait until a Notice of Inspection arrives to review their records. Regular self-audits, documented procedures, manager training and periodic compliance reviews can help identify issues before they result in costly penalties. A proactive approach remains one of the most effective ways to protect an organization from enforcement actions and operational disruptions.

MyHRConcierge Can Help Your Business Ensure I-9 Compliance

Navigating the complexities of employment verification and compliance can be daunting, but MyHRConcierge is here to help. Our services include:

• Outsourced HR Management and Government Compliance

Does your business need a personalized, and affordable way to manage your human resources tasks or supplement your current HR team? HRCompli and HRCompli+admin are monthly subscriptions with fees based on your number of employees. HRCompli® offers employers of all sizes a resource to help them maintain government compliance, while MyHRConcierge’s HRCompli+admin® allows you to outsource more of your administrative human resources tasks.

• I-9 Processing and Management

At MyHRConcierge, we understand the importance of HR compliance, which is why we have created HRHealthCheck™, a compliance review service designed to help you identify and mitigate potential risks. One of the key components of the HRHealthCheck is to understand how our client processes and maintains Form I-9s. We then provide personalized recommendations on how to ensure they are compliant.  

• E-Verify Support

The first step to sourcing viable candidates is through a trusted screening partner. MyHRScreens provides a streamlined, online employment screening solution that provides easy and efficient ordering backed by best-in-class customer support. With your online screening platform, you can order screenings 24/7 and have access to your historical screenings at your fingertips. 

Included in MyHRScreens’ vast array of criminal searches, resume verifications, drug tests and immunization tracking is the ability to compliantly and easily perform e-verify.

 For more information on how we can support your compliance efforts, contact MyHRConcierge today at ccooley@myhrconcierge.com, 855-538-6947 ext. 108, or, schedule a free consultation below: