Different Types of I-9 Violations and I-9 Errors

Those in HR know there’s no shortage of forms, compliance checklists, and onboarding tasks, but few are as critical (or as legally risky) as Form I-9. Designed to verify the identity and employment authorization of individuals hired in the United States, the I-9 seems straightforward on the surface; however, even small mistakes can result in I-9 violations and hefty penalties.  

Let’s get into specifics on this topic. Here are three key takeaways you’ll learn in this article: 

1. Overview on the different kinds of I-9 violations 
2. Steps on how to avoid I-9 violations 
3. External I-9 solutions that can help you remain in compliance  

Why Form I-9 Compliance Matters 

Under the Immigration Reform and Controls Act of 1986 (IRCA), the Form I-9 is required for every employee hired in the U.S. It helps ensure that your organization only employs individuals who are legally authorized to work in the country. U.S. Immigration and Customs Enforcement (ICE) is ramping up enforcement in 2025 under Trump and I-9 compliance has never been more critical. 

Increased enforcement, random audits, and higher scrutiny have led to an increase in fines for I-9 violations. According to ICE, fines can range anywhere from a few hundred to tens of thousands of dollars per form, depending on the nature and number of violations. So, whether it's an honest and small oversight or a major misstep, the consequences can be costly. 

What Are I-9 Violations? 

I-9 violations refer to errors, omissions, or failures in the completion, storage, or management of Form I-9. These issues are typically uncovered during an audit by ICE or the Department of Homeland Security (DHS), often beginning with a Notice of Inspection (NOI). 

While the term “violation” might sound dramatic, not all I-9 errors are created equal. They generally fall into the following three main categories: 

1. Technical Violations 
2. Procedural Violations 
3. Substantive Violations 

Each has different implications and understanding the distinctions is your first step toward better compliance. Let’s explore each violation type in more detail. 

Types of I-9 Violations

There are three different types of Form I-9 violations that can occur. Each are detailed below, along with examples and potential penalties.

Technical Violations 

What they are:  
These are minor, often clerical or administrative mistakes that typically do not impact the determination of an employee’s work authorization. 

Examples Include: 

• Missing address or birth date fields that are not critical to employment eligibility. 
• Forgetting to enter the document title or issuing authority. 
• Failing to enter the employee’s start date in Section 2. 

Potential Penalties: 
While these may seem harmless, technical violations still carry financial penalties ranging from $288 to $2,861 per form for paperwork violations. This really adds up especially if they appear in large numbers.

Fortunately, ICE generally allows a 10-day grace period to correct them during an audit. That said, repeated technical errors may suggest a pattern of non-compliance, and that’s when fines start adding up. 

Procedural Violations 

What they are:  
Procedural violations relate to how the I-9 process is handled, including how the form is completed, stored, and maintained. These go beyond typos and reflect gaps in your process. 

Examples Include: 

• Not completing Section 1 by the employee’s first day of work. 
• Section 2 not completed within three business days of hire. 
• Using an outdated version of Form I-9. 
• Storing I-9s improperly (e.g., not keeping them separate from personnel files). 

Potential Penalties: 
Procedural violations can result in moderate fines, ranging from $281 to $2,789, especially if they indicate systemic issues. There’s no grace period for these errors and ICE may view them as evidence of neglect or lack of training. 

Substantive Violations 

What they are:  
These are the most serious violations. Substantive errors directly affect an employer’s ability to verify an employee’s work eligibility or reflect non-compliance with federal hiring laws. 

Examples Include: 

• Not completing Form I-9 at all. 
• Failing to sign the form. 
• Not verifying employment documents. 
• Hiring or continuing to employ someone not authorized to work in the U.S. 

Consult our blog for some additional substantive violations. 

Potential Penalties: 
These violations often result in maximum fines and in extreme cases, criminal prosecution. The penalty for knowingly hiring or continuing to employ unauthorized workers can range from $698 to $5,579 per unauthorized worker, and employers can face debarment from federal contracts. 

How to Prevent I-9 Violations 

The good news? Avoiding most I-9 errors is entirely possible with the right processes, tools, and training in place. Here's how HR teams can stay ahead of compliance risks: 

1. Standardize Your I-9 Process: Create a step-by-step protocol for completing, reviewing, and storing I-9 forms. Make sure all team members follow the same process, whether the employee is remote or in-office.
2. Train HR Staff Regularly: Compliance isn’t static. Forms and regulations change often, and mistakes happen. Offer regular training sessions to HR, and any I-9 authorized representatives, so they understand:
   • How to correctly complete Form I-9. 
   • What constitutes technical, procedural, and substantive violations. 
   • How to spot and correct common I-9 errors. 
   • How to handle re-verifications and document retention. 

Leverage Digital Form I-9 Solutions 

Manual processes are more prone to human error which is why you should consider using a digital Form I-9 solution like OutSolve's. Our solution:  

• Guides users through proper form completion. 
• Flags missing or incorrect fields in real-time with built-in logic. 
• Maintains a secure, auditable record for each Form I-9. 
• Maintains compliance with the latest version of the form. 

Plus, with trained I-9 agents available to review and support the process, digital tools can offer peace of mind and protection against costly I-9 violation fines. Not only that, but you have access to these experts when important questions arise about your I-9 process. 

What I-9 Violations Mean for Your Organization 

Let’s be honest—no HR team wants to be in the hot seat during an I-9 audit. The stakes are too high and the risks too real. From technical missteps to substantive hiring violations, even seemingly small errors can trigger large penalties. 

With increased immigration enforcement, now is the time to tighten your I-9 processes, train your team, and invest in the right compliance tools. Being proactive isn’t just a smart business decision, it’s essential. 

Ready to Strengthen Your I-9 Compliance? 

OutSolve's I-9 solution is designed with HR teams in mind. With built-in logic to prevent errors, trained agents to support your compliance journey, and a user-friendly platform to streamline onboarding, we're here to help you reduce risk and stay audit ready. 

Book a demo today to see how our I-9 product can keep your organization compliant and confident.