Written by Maria Trapenasso, SVP, National Practice Leader of Human Capital Solutions, NFP
As federal enforcement of I-9 compliance increases, it's more important than ever for employers to stay vigilant. Failure to do so will come at a cost, as Immigration and Customs Enforcement (ICE) has ramped up audits and increased workplace inspections. U.S. employers must stay ahead to avoid costly fines and disruptions. As the Trump administration has made it clear that enforcing immigration law is a top priority, reviewing form I-9 updates, best practices for staying compliant and what to do if ICE comes knocking will help ensure your business remains on track.
ICE audits are expected to intensify throughout 2025, just as they did during Trump’s first administration.1 This will be felt particularly in industries with high turnover, such as hospitality, agriculture, and construction. The audits are often triggered by a Notice of Inspection, giving employers just three business days to provide Form I-9 records. Employers must be vigilant about common errors like missing documentation or technical mistakes in how the forms are completed, errors that can lead to substantial fines and penalties.
Penalties for noncompliance can range from $2,861 per paperwork violation to as high as $28,619 for repeated violations,2 such as knowingly employing unauthorized workers. Employers in high-turnover industries and those with federal contracts are at greater risk of being targeted by ICE, particularly when issues like Social Security number mismatches or employee complaints arise.
The Updated Form I-9
In January 2025, the United States Citizenship and Immigration Services (USCIS) released a new version of Form I-9, required for verifying employment eligibility.3 The updated form includes changes in the List B document descriptions, revised instructions and an updated Department of Homeland Security Privacy Notice to reflect current regulations. Employers can continue using the August 2023 edition until its expiration on July 31, 2026. However, switching to the new January 20, 2025, edition, with an expiration date of May 31, 2027, ensures compliance and helps avoid penalties during an ICE audit, especially as regulatory enforcement ramps up.
For Employers Using Electronic I-9 Systems
If you’re using an electronic I-9 system, it’s vital to ensure the system meets DHS retention and security requirements, including secure storage and detailed audit trails. Noncompliant systems can lead to fines during an audit.
Best Practices for Staying Compliant
That may sound a little scary, but all is not lost if you've fallen behind on I-9 compliance. The good news is that it's never too late to take action and bring your business up to speed. NFP’s Human Capital Solutions team has been guiding employers through the process, helping manage compliance responsibilities, assisting with corrections to minimize risk and ensure that their workplace is ready for any audit. With these best practices in mind, staying on top of future audits will be easy and manageable.
Perform periodic audits to ensure your I-9 forms are complete, accurate and compliant with current regulations. This proactive step helps you spot outdated forms and correct any errors before ICE comes knocking. It’s also beneficial to work with an immigration attorney or HR specialist to ensure everything is in order.
Proper training is crucial. Ensure your HR team knows how to complete and verify Form I-9 correctly. Avoid assigning the same person to both complete and audit the forms to maintain objectivity and reduce risk.
E-Verify plays a critical role in I-9 compliance, especially for employers in states where it’s required or those working with federal contracts. It allows you to verify an employee’s eligibility to work in real time, streamlining compliance and reducing risks. Ensure your E-Verify account is active, in good standing and aligned with the 2025 I-9 edition updates, particularly as remote verification becomes more common.
Ensure you retain copies of all required identity and work authorization documents separately from employee personnel files. Doing so can reduce the likelihood of penalties, as technical errors are often easier to resolve than substantive violations.
Develop a clear protocol for handling ICE audits or USCIS inspections. Know your rights, including requiring a judicial warrant for access to private areas of the business, and have a legal contact on hand for any questions or disputes.
Avoid Common Pitfalls
Employers often make simple errors that can lead to substantial fines. Common mistakes include:
- Incomplete forms (e.g., missing signatures or dates).
- Improper verification of documents (e.g., accepting expired or forged documents).
- Failing to complete Form I-9 on time (must be done within three business days of hiring). Conducting regular internal audits and maintaining a robust training program for HR teams can help minimize these risks.
- Failing to recertify (i.e., certain expired I-9 documentation must be recertified).
With ICE’s increased activities, especially in high-risk areas like California, staying vigilant is more important than ever. Wherever you’re located, our Human Capital Solutions team is here to guide you every step of the way. Whether you're just getting started with I-9 updates or need expert support to maintain compliance, our team has the knowledge and experience to help you stay on track. Don’t wait until an audit knocks on your door, contact us today to protect your business from costly disruptions and fines.
