Federal law mandates that U.S. employers verify their employees’ authorization to work in the United States by completing Form I-9. Due to increased immigration enforcement, workplace Form I-9 audits have increased. This article explores employers’ requirements, common mistakes during the process, and the potential consequences of noncompliance.

Form I-9

Employers must verify the identity and work authorization of every employee hired in the U.S. after November 6, 1986, using Form I-9. Employer obligations include:

• Avoiding knowingly hiring or continuing to employ unauthorized workers.
• Completing and retaining Form I-9 for each employee. Form I-9s must be retained for three years after an employee was hired or one year after employment ends—whichever is later.
• Keeping Form I-9s available and easily accessible for inspection upon request.
• Completing Form I-9s accurately and on time.
  • Completing Section 2 of Form I-9 by the third business day after the date the employee begins employment, or, if the employee is hired for three business days or less, at the time the employee begins employment.
  • Completing Supplement B (formerly Section 3) of the form before an employee’s work authorization expires.
• Ensuring that the information on Form I-9s is clear and readable, all applicable sections of the form are completed accurately, and that the information matches the employer’s payroll records.

 
ICE Form I-9 Audits

U.S. Immigration and Customs Enforcement (ICE) is the federal agency responsible for enforcing rules and regulations concerning work authorization under the Immigration and Nationality Act. If ICE decides your business warrants an inspection, you will receive a Notice of Inspection (NOI) signaling an I-9 audit. Upon receiving the NOI, you have three business days to provide Form I-9s to ICE. You may also be required to provide other business documents, including payroll records, a list of current and former employees, and your business license or incorporation documents.

ICE reviews Form I-9s for substantive violations and technical or procedural errors. If technical or procedural issues are identified, employers generally have ten business days to correct them before the error becomes a substantive violation.

Common Form I-9 Errors & Violations:

• Technical or Procedural Errors:
  • Using an outdated Form I-9 (the most current Form I-9 can be found at uscis.gov/i-9)
  • Missing information in required fields
  • Missing employer information in Section 2
• Substantive Violations (more severe and can lead to fines)
  • No Form I-9 on file for an employee
  • Missing signatures or dates
  • Failure to review work authorization documents
  • Failure to complete required sections on time
  • Knowingly hiring or continuing to employ an unauthorized worker

 
Post-Audit Follow-up:

• Compliance Letter: You passed the inspection, and no action is needed
• Notice of Technical or Procedural Failures: You must correct errors within the allotted timeframe
• Notice of Suspect Documents: ICE questions employee documents
• Notice of Discrepancies: ICE can’t determine work authorization
• Warning Notice: Violations were found, but no fine has been issued
• Notice of Intent to Fine (NIF): civil penalties may apply

 
If ICE issues a NIF, employers have 30 days to request a hearing before an administrative law judge with the Office of the Chief Administrative Hearing Officer. Employers can try to settle with ICE before a hearing, but if no hearing is requested, ICE will issue a Final Order with no appeal.

Penalties

Employers who violate Form I-9 requirements may be subject to civil fines, criminal penalties, and debarment from government contractors. Paperwork violations can range from $288 to $2,861. Fines for knowingly hiring unauthorized workers range from $716 to $28,619.

Additional Information:

• ICE Factsheet: Explains Form I-9s, employer obligations, inspection details, and potential penalties
• NFIB Legal Center Webinar: How Small Businesses Should Prepare for Stricter Immigration Enforcement: Overview of Form I-9 compliance and ICE inspections

If you have questions about Form I-9 compliance, ICE inspections, or finding an attorney, contact the NFIB Legal Center at (800) 552-NFIB or info@nfib.org.

Updated January 28, 2026