Most employers don’t wake up thinking, “What if we missed something when we hired someone—and ICE walks through the door?” But for many businesses across the country, that’s exactly how an ordinary workday has turned into a costly, time-consuming compliance nightmare.
That concern isn’t coming out of nowhere. You’ve probably noticed references to I-9 forms showing up in the news more often recently. Enforcement activity, employer audits, and work authorization issues tend to grab headlines; but the form itself has been around far longer than most people realize. Form I-9 was created under the Immigration Reform and Control Act of 1986, which made employers responsible for verifying an employee’s identity and authorization to work in the United States, regardless of company size.
Nearly four decades later, the I-9 remains one of the most closely examined documents during an ICE audit, and even small technical mistakes can create compliance problems. The implications are significant beyond just compliance. If employees are removed by authorities, it puts both your workforce and day-to-day operations at greater risk. That’s why staying organized and audit-ready matters just as much as completing each section of the form correctly within the required timeframes after an employee starts work.
With that in mind, here’s a clear breakdown of what the I-9 is, why it exists, what employers must do, and how to avoid the common errors that trigger fines.
What Is the I-9 Form and What Is It For?
Form I-9 is the federal process employers use to verify a new employee’s identity and authorization to work in the United States.
The I-9 process itself is simple: the employee shows documents that prove who they are and that they’re allowed to work in the U.S., and the employer looks them over to make sure they reasonably appear to be genuine and relate to the person who is presenting them. The form creates a clear record showing that both sides followed the rules, and it gives the Department of Homeland Security (DHS) what it needs if questions ever come up during an audit.
Employment eligibility verification exists to create a consistent, lawful process for hiring. It prevents employers from knowingly hiring unauthorized workers, and it prevents employees from being targeted or discriminated against based on citizenship or immigration status.
In practical terms, the I-9 exists to make sure federal hiring laws are followed and that every employer uses the same verification process across all states. It also serves as an employer’s first line of protection during an ICE audit or inspection, giving you a clear record if questions ever arise.
The I-9 Document Rules Employers Must Follow
Form I-9 isn’t difficult, but the rules are strict. Employers must:
Use the current version of the form:
The most current version of Form I-9 has an edition date of January 20, 2025, and an expiration date of May 31, 2027.
Complete the form on time.
Section 1: employee’s first day
Section 2: employer review within three business days of the employee’s first day of work for pay
Missing these deadlines is one of the most common reasons employers fail ICE audits.
Verify Original Documents In-Person or Remotely
Employers must review original documents from the approved Lists of Acceptable Documents — generally original documents (with limited exceptions such as certain certified copies), and no guessing.
Employers may use the DHS-authorized alternative remote document examination procedure only if they are enrolled in E-Verify and follow all required DHS steps.
E-Verify is a secure, internet-based system that checks the information from an employee’s Form I-9 against records from the Social Security Administration and the Department of Homeland Security. It gives employers an extra layer of confirmation that a new hire is legally authorized to work in the United States.
For many businesses, E-Verify streamlines the process. Results come back quickly, and the system reduces the guesswork that can happen when reviewing documents on your own.
Store and retain I-9s correctly.
The I-9 has a very specific retention rule. Employers must keep each form for three years after the date of hire or one year after the employee leaves, whichever date is later. This timeline comes directly from the USCIS M-274 Employer Handbook and is a common point of confusion during audits. Keeping track of both dates is important.
Avoid discrimination.
Employers cannot specify which documents an employee must show or treat workers differently based on citizenship status.
None of these steps are difficult, but they do require consistency and a system strong enough to avoid missed deadlines or missing paperwork.
How ICE Audits Work and Why Readiness Matters
Form I-9 serves as the official record of that verification. It’s not filed with the government; you keep it. If U.S. Immigration and Customs Enforcement (ICE) ever audits your business, the I-9 is your proof that you followed federal law at the time of hire.
ICE may initiate an administrative inspection by serving a Notice of Inspection (NOI) and may request Forms I-9 for current employees and for former employees whose I-9s must still be retained under federal retention rules.
During an audit, ICE checks for:
- Missing or incomplete forms
- Late completion
- Incorrect document review
- Issues indicating potential unauthorized employment
- Poor storage or inconsistent processes
Fines vary based on violation type and whether the employer is a repeat offender. Even first-time paperwork violations can result in significant civil penalties when multiplied across multiple employees.
The employers who fare best during an audit are usually the ones with strong, consistent processes already in place. That includes having a clean onboarding workflow, keeping all documents stored in a central and organized location, and maintaining a clear procedure for reverifying work authorization when needed.
Many also enroll in E-Verify for an added layer of protection and run periodic internal self-audits to catch small issues before they become bigger problems. Together, these habits create a level of readiness that makes an unexpected audit far less stressful.
Small and mid-sized businesses often struggle with this simply because they lack resources to manage these details.
Register for CommPayHR’s Upcoming I-9 Webinar
Join us on February 10th for a live webinar, “I-9 Compliance: Are You Doing It Right?” Hosted by Jeff Plakans, President of Commonwealth Payroll & HR, and featuring I-9 compliance expert Melissa Prentice of Clear I-9 by HRlogics, this session brings the requirements outlined above to life. You’ll leave with practical guidance to strengthen your I-9 process and feel more confident about audit readiness.
TOP