Changes to federal Form I-9 and increased enforcement by immigration authorities have made employment eligibility verification more important than ever.

For employers, failing to meet I-9 requirements can lead to serious consequences including fines, penalties, and investigations. Whether your team works in-office, remotely, or across multiple states, keeping up with these changes should be a priority.

This article will help you understand the latest I-9 compliance rules, how audits work, and what you can do now to protect your business.

Why ICE Is Paying More Attention to
I-9 Violations

The United States Immigration and Customs Enforcement (ICE) is stepping up audits to make sure employers are verifying that all new hires are eligible to work in the United States. These audits are happening across industries, including small and medium sized businesses.

All U.S. employers must complete a Form I-9 for each employee they hire. This includes full-time, part-time, seasonal, and temporary workers. The goal is to confirm the employee’s identity and authorization to work in the country. Failing to comply, or even just completing the form incorrectly, can lead to large fines.

As of 2025, here are some updated penalties employers may face:

• Paperwork violations: Up to $2,789 per form

• Knowingly hiring unauthorized workers:

  • First offense: Up to $5,579 per violation

  • Second offense: Up to $13,946 per violation

  • Third or more: Up to $27,894 per violation
    

• Failure to notify DHS about an expiring work authorization: Up to $1,942 per employee

Penalties can be adjusted depending on business size, severity of the violation, and previous history. Some employers may face criminal charges if they repeatedly break I-9 rules.

What Is Required on the I-9 Form

Employers must ensure that all new hires complete Section 1 of the I-9 form on or before their first day of employment. Employers must complete Section 2 by the end of the third business day.

Here is what you need to do to meet current requirements:

• Download the latest version of Form I-9 directly from the USCIS website

• Ensure employees complete Section 1 on the first day of work

• Verify original identification documents in person or via live video (only for employers enrolled in E-Verify)

• Complete Section 2 no later than the third business day

• Store completed forms for three years after the hire date or one year after termination, whichever is later

How to Store I-9 Forms the Right Way

Do not store I-9 forms inside personnel files. This can cause unnecessary privacy issues and make it harder to respond to an audit.

Instead, keep all I-9 forms in a single file — one for active employees and one for former employees. If you use electronic storage, make sure original signatures are scanned clearly and stored securely. Access to these files should be limited to authorized HR or compliance staff only.

Tips to Maintain I-9 Compliance

Here are some practices you can follow to reduce risk and stay audit ready:

• Always check the expiration dates on identification documents

• Never accept copies — only original documents are valid

• Do not tell the employee which documents to provide

• Review documents in person or by video if using E-Verify

• Conduct internal I-9 audits every year

• Provide new hires with the official USCIS instruction sheet

• Never ask for documentation before a job offer is accepted

• Ensure I-9s are filled out using black or blue ink if completed on paper

Frequently Asked Questions

Can HR fill out Section 1 for a new hire?

No. Only the employee may complete Section 1. The employer is responsible for Section 2.

What if an employee presents an expired document?

Expired documents are not valid. The employee must provide current, unexpired documents from the list provided by USCIS.

What happens if an employee fails to bring documents within three days?

If an employee does not present acceptable documents in time, the employer may need to end employment based on federal requirements.

What should I do if a document appears suspicious?

You may ask the employee to present an alternative document from the USCIS list. You may not suggest which document to provide.

Can remote verification be used?

Yes, but only under specific rules. The Department of Homeland Security allows video verification in some cases, but only if the employer is registered with E-Verify.

Understanding State Level Rules for E-Verify

E-Verify is a free federal system that confirms employment eligibility online. Some states require its use, while others restrict or ban it. If your business operates in more than one state, it is critical to understand those differences.

• Required in all cases: Alabama, Arizona

• Required for certain size employers: North Carolina, Tennessee, Utah

• Use restricted by local law: California

Action Steps to Protect Your Business

The best way to stay compliant is to implement a clear and repeatable I-9 process. That process should include:

• Training HR or hiring staff on correct procedures

• Using checklists to track completion dates and storage

• Conducting annual internal audits

• Separating I-9s from all other employee files

• Staying updated with USCIS announcements and form changes

I-9 audits can happen with little warning. Employers who prepare in advance are more likely to avoid penalties and maintain a professional workplace.

Final Thought

I-9 compliance is not optional. It is a legal obligation that every employer must meet. As enforcement increases, staying informed and organized is the key to protecting your company. If you have not reviewed your I-9 process recently, now is the time to take action.

If you need help creating an I-9 process that is compliant, efficient, and audit ready, visit us online. The Buzz HR offers expert guidance and hands-on support to keep your HR operations in top shape.