How to Ensure I-9 Compliance: Best Practices for Employers

With the government’s increased focus on immigration enforcement, ensuring full compliance with I-9 regulations is more critical than ever. Many business owners and representatives underestimate the complexity of the I-9 process, often treating it as a simple paperwork requirement. However, even minor errors can lead to significant financial and legal consequences. Our consultants frequently identify improper I-9 compliance as one of the most common issues during client assessments, highlighting the need for employers to take a more proactive approach.

Test Your I-9 Knowledge

Before diving into best practices, test your knowledge with these I-9 compliance scenarios:

A) What should you do if an employee brings in new I-9 documentation because they are afraid of deportation?

1. Fire the employee immediately because they misled you into thinking they were legal to work in the U.S.

2. Ignore the new documents that they have provided.

3. Call the Department of Homeland Security to report them.

4. Complete a new Form I-9. Write the original hire date in Section 2, attach the new Form I-9 to the previously completed Form I-9, and include a written explanation.

      (Correct Answer: 4)

B) If an employee makes an error while completing the I-9, what is the proper way to correct the error?

1. Use white-out to cover the error.

2. Draw a line through the incorrect information, enter the correct or missing information, and initial and date the correction.

3. Draw a line through the incorrect information, have the employee provide the correct or missing information, and have the employee initial and date the correction.

4. Either 2 or 3

      (Correct Answer: 3)

Employer Responsibilities for I-9 Compliance

Form I-9 is a critical document for verifying an employee's identity and authorization to work in the United States. Employers must follow strict guidelines to ensure compliance with federal law and avoid costly penalties.

1. Ensure Proper Training for Those Handling I-9 Certifications

One of the most common compliance mistakes is improper handling of I-9 forms. Employers should:

• Train HR personnel and managers on the correct procedures for completing and verifying I-9 documentation.

• Ensure staff is familiar with the latest USCIS guidelines and regulations, including the proper way to handle remote certifications.  

• Provide refresher training annually to keep up with legal updates.

• Companies must also ensure they are using the correct version of Form I-9. Currently, employers must use the Aug. 1, 2023, edition, which features an expiration date of either July 31, 2026, or May 31, 2027.

  
  

2. Conduct Annual Internal I-9 Audits

Regular internal audits help identify errors and correct them before an external government audit. Best practices include:

• Reviewing all I-9 forms to ensure they are correctly completed and stored.

• Checking for missing or incorrect employee information on I-9s.

• Verifying that all required documents are attached and valid.

• Addressing any deficiencies promptly and in accordance with the USCIS guidelines while maintaining compliance with anti-discrimination laws.

  
  

3. Create and Follow Consistent Processes

To avoid discrimination claims, employers must handle all I-9 forms consistently. Best practices include:

• The same verification procedures are used for all employees, regardless of citizenship or national origin.

• Establish written I-9 procedures and ensure all hiring managers follow them.

• Keeping I-9 records separate from personnel files to maintain privacy and compliance.

  
  

4. Follow USCIS Guidelines and Retention Requirements

Employers must ensure they comply with all USCIS regulations:

• Timing: Section 1 must be completed by the employee no later than their first day of work, and Section 2 must be completed by the employer within three business days of the employee’s start date.

• Document Retention: Employers must retain Form I-9 for either three years after the hire date or one year after the employee leaves the company, whichever is later.

• Avoiding Discrimination: Employers cannot ask employees for documentation to verify information in Section 1 or specify which acceptable documentation employees must present for Section 2 or Supplement B, Reverification and Rehire. Employers may not reject valid documents that appear genuine.

What Happens If You Don't Comply?

Failure to comply with I-9 requirements can have severe consequences:

• Employees who suddenly disappear when the government announces inspections.

• Government fines range from $2,789 per violation for errors on the forms to over $27,000 for knowingly employing an unauthorized worker.

• HR managers and business owners could face up to 10 years in prison and fines of up to $250,000 for actions considered "harboring" undocumented workers.

  
  

Key Takeaways

• Train all individuals handling I-9s to ensure they are compliant with USCIS regulations.

• Conduct annual I-9 audits to catch and correct errors proactively.

• Establish consistent hiring and verification procedures to prevent discrimination.

• Follow USCIS retention and compliance guidelines to avoid fines and penalties.

By implementing these best practices, employers can ensure they remain compliant with I-9 regulations while maintaining fair and legal hiring practices.

If you need help with I-9 training or conducting an I-9 audit, please contact your THRM consultant or Edna Nakamoto.