With the current concerns around undocumented workers at American companies, federal form I-9 is receiving a lot of attention. If or when an immigration enforcement agency targets a business, one of their first steps is to examine the I-9 forms to confirm every worker is accounted for.

I-9 Employment Eligibility Verification forms ensure that businesses adhere to federal regulations by verifying the identity and employment eligibility of their workforce. Before such an audit is conducted by an outside agency, businesses would be wise to ensure their records are current and complete. Understanding the ins and outs of handling I-9 forms is essential for maintaining compliance and avoiding potential pitfalls.

In this post, we’ll explore why I-9 forms matter, what can trigger an audit, and how to prepare for that possibility.

Why I-9 Forms Matter

I-9 forms play an important role in promoting lawful employment practices and safeguarding businesses from potential legal and financial repercussions. Both employers and the workforce in general are served by compliance, as we will expand upon below.

When an employer fails to comply with I-9 requirements, it can lead to significant penalties, including hefty fines and potential legal action. Per new legislation, these penalties can range up to $2,861 for each error in paperwork alone; and an actual illegal hire can trigger fines up to 10X that amount. Ensuring that your workforce is compliant not only helps avoid these risks but also promotes a culture of ethical operations.

I-9 protocols serve workers by assuring open jobs only go to people legally authorized to take them. This keeps the workforce under the protection of labor laws and workplace regulations.

Compliance with I-9 requirements supports broader immigration laws and fosters a social climate of respect for the law. By keeping your I-9 records up-to-date and readily available, you help the country gain the intended value of that form.

What Triggers an I-9 Audit?

Several factors can lead to an I-9 audit and knowing them can help employers stay prepared. Participation in government programs that require regular verification of employment eligibility can trigger an audit. Government agencies, such as Immigration and Customs Enforcement (ICE), also routinely conduct random audits to ensure compliance with employment eligibility laws.

One common trigger is a tip from the public. Tips can come from various sources, including disgruntled employees, competitors, or community members who believe there may be compliance issues. Additionally, reports of suspicious activity, such as irregularities in hiring practices, can prompt an audit.

Inconsistencies found during other aspects of the employment verification process can also lead to an audit. This includes discrepancies in the information provided on I-9 forms or mismatches in electronic verification systems like E-Verify. Employers in industries with a high turnover rate or those that frequently employ foreign workers may face increased scrutiny, as these sectors are often considered higher risk for compliance issues.

Common Mistakes in I-9 Preparation

U.S. Citizenship and Immigration Services provides easy to follow information about proper completion and maintenance of I-9 forms. They have identified the following errors as those likely to occur in routine operations:

In Section 1

• Employee does not enter name, other last names used (such as maiden name), address or date of birth
• Employee does not enter A-number/USCIS Number after selecting “A Lawful Permanent Resident.”
• Employee does not enter A-Number/USCIS Number or Form I-94 admission number after selecting “An alien authorized to work until.”
• Employee does not sign or date the attestation.
• Employee does not complete Section 1 by the first day of employment (“date of hire,” meaning the commencement of employment for wages or other remuneration). 
• Employee does not check one of the boxes indicating that he or she is a citizen or alien national of the U.S., a lawful permanent resident, or an alien authorized to work until a specified date—or checks multiple boxes attesting to more than one of the above.
• Each preparer and/or translator for the employee does not complete separate certification block (if applicable) in Supplement A, Preparer and/or Translator Certification for Section 1.
• The preparer and/or translator for the employee does not enter his or her name, address or signature in the certification block of Supplement A (if applicable).
• The preparer and/or translator for the employee does not enter the date in the certification block of Supplement A they completed.

In Section 2

• Employer does not enter an acceptable List A document or acceptable List B and List C documents on the form.
• Employer does not enter the document title, issuing authority, number(s) or expiration date for the documentation presented.
• Employer does not enter its business title, name or address.
• Employer does not enter the date employment began (date of hire).
• Employer or employer’s authorized representative does not sign, date or enter his or her title, last name, or first name in the certification.
• Employer does not complete Section 2 by the third business day after the date the employee began employment, or, if the employee is hired for 3 business days or less, at the time the employee started employment.

In Supplement B, Reverification and Rehire

• Employer does not enter the employee’s last name, first name, and middle initial at the top of Supplement B.
• Employer does not enter the document title, number or expiration date for the acceptable documentation presented.
• Employer does not enter the date of rehire, if applicable.
• Employer does not enter the employee’s new name, if applicable.
• Employer does not sign, date, or enter his or her name in the certification.
• Employer does not complete Section 3 until after the employee’s work authorization has expired.

I-9 Audit Process

The I-9 audit process follows a structured approach. Remember: This process is about properly filling out and retaining the forms themselves, not necessarily the status of the employees represented by those forms.

An audit typically begins when an employer receives a Notice of Inspection, a formal request from government agencies to review I-9 forms. This notice gives the employer a specific timeframe, usually three business days, to gather and present the requested documents. Some companies choose to retain an attorney to help navigate the process.

Once the documentation is submitted, auditors carefully review the I-9 forms for accuracy and completeness. Common issues auditors look for include those detailed above. They also verify that the documents used to establish identity and employment authorization are legitimate and match the information provided. Acceptable documentation includes:

• A U.S. Passport or U.S. Passport Card
• Permanent Resident Card or Alien Registration Receipt Card (Form I-551)
• Foreign passport that contains a temporary I-551 stamp or temporary I-551 printed notation on a machine-readable immigrant visa
• Employment Authorization Document that contains a photograph (Form I-766)
• Foreign passport with Form I-94 or Form I-94A with Arrival-Departure Record, and containing an endorsement to work
• Passport from the Federated States of Micronesia (FSM) or the Republic of the Marshall Islands (RMI) with Form I-94 or Form I-94A indicating nonimmigrant admission under the Compact of Free Association Between the United States and the FSM or RMI

Auditors may also check how employers store and retain their I-9 forms. Proper retention is crucial, as forms must be kept for either three years after the hire date or one year after employment ends, whichever is later. Failure to maintain forms correctly can result in penalties.

To ensure that an I-9 audit does not result in sanctions against the company, employers should – first and foremost – make sure that I-9s are properly completed and retained[BR4] . A proactive approach can significantly reduce the stress and disruption associated with an I-9 audit.

I-9 Compliance Best Practices

Now that you know the kind of scrutiny you might face, here’s the good news: It’s not difficult to ensure that your workers’ I-9 forms are accurate and complete. Here are the recommended steps:

1. Develop and follow a rigorous onboarding process that sets compliant I-9 form completion as a go/no-go step. Do not permit a new hire to start work without completing the form. Make this clear as soon as they accept the job offer and remind them before their start date. Also make sure your managers understand the policy so they are prepared to deal with any complications on that first day.
2. Use an I-9 checklist (like the one above and what follows). Share it with your new hire, and make sure that everyone involved in the onboarding process has access to it and understands what it requires.
3. Complete Section 2 of the I-9 form within three business days of each employee’s start date.
4. Carefully examine all documents presented by employees to ensure they are authentic and meet the requirements of the List of Acceptable Documents.
5. Maintain secure records. Store the original completed I-9 forms securely in a designated location, separate from personnel files. Maintain the records for the required period. For more information on storage, refer to How to Retain and File I-9 Forms.
6. Conduct regular internal audits of these forms, correct any errors promptly, and ensure that the original records are organized and easily accessible.  
7. Know how to respond if your I-9s are audited by an outside agency. If your company is in an industry where audits are frequently conducted, consult with legal counsel to prepare for any circumstances that might complicate the audit process, such as a worker supplying counterfeit documentation.
8. Develop a plan to minimize business disruption during or following an audit.
9. Consult with a legal partner to ensure compliance with the latest updates.

VensureHR: Simplifying I-9 Compliance

Ensuring compliance with I-9 regulations can be daunting, but VensureHR can take that weight off your shoulders. VensureHR is expert in HR compliance, along with every aspect of workforce administration. This expertise frees your company to focus on its core business and the work your people do best.

By partnering with VensureHR, you also gain access to technology platforms that drive compliance with a minimum of hassle and enable streamlined document retention and access as needed. To learn all VensureHR can do for your business, schedule a consultation today.