I-9 Compliance: Avoiding Penalties

Form I-9 Basics

Every employer in the United States must complete Form I-9 for each person they hire. This applies regardless of company size or the employee's citizenship status.

Completing the Form

Section 1: Employee

The employee must complete Section 1 no later than the first day of employment. Ensure the employee:

• Fills in all required fields
• Signs and dates the form
• Provides their Social Security number (mandatory if using E-Verify)

Section 2: Employer

The employer must complete Section 2 within three business days of the employee's start date. You must:

• Examine original documents presented by the employee, either in physical presence or, for qualified E-Verify employers in good standing, through the DHS-authorized remote verification alternative
• Accept any documents from the Lists of Acceptable Documents
• Not specify which documents the employee must present
• Record document information accurately
• Sign and date the certification

Supplement B: Reverification and Rehire

On the current Form I-9 (08/01/23 edition), reverification and rehire are documented on Supplement B, which replaced the prior Section 3. Use Supplement B when:

• An employee's work authorization expires
• An employee is rehired within three years of the original I-9

Common Errors

• Accepting expired documents for Section 2 (except for initial hire of certain work-authorized individuals)
• Requesting specific documents instead of letting the employee choose
• Backdating or predating the form
• Failing to complete Section 2 within three business days
• Not reverifying when required
• Using an outdated version of the form

Internal Audits

Conduct regular I-9 audits to identify and correct errors:

1. Inventory all I-9 forms and ensure you have one for every current employee
2. Review each form for completeness and accuracy
3. Correct errors using proper procedures (single line through errors, initials, and date)
4. Note any forms that cannot be corrected and determine next steps
5. Document the audit process and findings

Penalties

I-9 violations can result in civil penalties ranging from hundreds to thousands of dollars per violation. Penalties are higher for repeat offenders and for employers found to have engaged in a pattern of violations.

Record Retention

Keep I-9 forms for:

• Current employees: As long as they are employed
• Former employees: The later of three years after hire date or one year after termination