The anxiety of an I-9 audit by Immigration and Customs Enforcement (ICE) can cause business owners and HR professionals sleepless nights, especially as the current administration intensifies its focus on immigration reform. These audits ensure that employers are complying with the Immigration Reform and Control Act (IRCA) by verifying the identity and employment eligibility of their employees. It involves checking the Employment Eligibility Verification forms (Form I-9) to confirm that all employees are legally authorized to work in the United States and that a Form I-9 is on file for all employees hired after Nov. 6, 1986.
With the Department of Homeland Security (DHS) increasing enforcement, an ICE Form I-9 audit compliance check is no longer just a possibility - it's quickly becoming a reality. Employers that fail to meet I-9 recordkeeping requirements can face significant penalties, reputational damage, and potential legal consequences.
Learn more about updates to Form I-9 compliance in 2025, what to expect from an ICE audit, and how to prepare your organization for success.
The current administration will emphasize I-9 compliance, requiring employers to strictly follow employment eligibility verification, recordkeeping, and remote verification procedures. Staying informed about Form I-9 compliance in the new administration will help you adjust your processes and avoid unnecessary penalties.
The primary change you can expect from DHS I-9 updates in 2025 is increased scrutiny of the verification process, documentation and recordkeeping. DHS’s enforcement arms, U.S. Immigration and Customs Enforcement (ICE) and Customs and Border Protection (CBP) are being spared from the Trump administration budget cuts with the increased focus on immigration compliance audits. The administration has strengthened collaboration between DHS, ICE, and the Department of Justice (DOJ) to increase compliance audits and crackdowns on unauthorized workers.
The goal is to encourage the private sector to take a more active role in preventing unauthorized employment through rigorous I-9 verification procedures. Therefore, employers must be prepared for unexpected ICE inspection audits. The safest approach is to conduct regular proactive internal I-9 audits, to correct any discrepancies, and verify that all I-9 records are stored securely and readily accessible for review.
Remote work has become increasingly popular, offering flexibility and convenience for both employers and employees. With the rise of remote work, the need for efficient and compliant verification processes has also grown. Remote verification of I-9 forms now gives employers the option of verifying employment eligibility without requiring in-person document inspection through E-Verify, using procedures like live video interactions and electronic document submission. Note, the remote option is only for employers enrolled in good standing with E-Verify.
Additionally, electronic I-9 storage systems provide a secure and reliable way to store these forms, ensuring they are easily accessible, compliant with regulatory standards and retrievable should an audit arise. These advancements help streamline the hiring process and maintain compliance in a remote work environment. If your company uses electronic I-9 systems, verify that it meets DHS retention requirements, includes detailed audit trails, and access controls to prevent tampering.
An ICE audit is a structured investigation of your company’s Form I-9 compliance to ensure that all employees are legally authorized to work in the United States. These audits can lead to steep fines and legal consequences if an employer is found not in compliance.
I-9 audits begin with a Notice of Inspection (NOI), giving employers three business days to gather and submit their Form I-9 records. ICE or the Homeland Security Investigations (HSI) division within ICE reviews these records for technical errors, missing forms, or unauthorized employment. After the review, the agency may issue penalties, require corrections, or in severe cases, escalate the investigation.
It should be noted, California law (Labor Code section 90.2(a)) requires employers to post a notice within 72 hours of receiving the notification of inspection.
Audits aren’t typically random. ICE targets specific industries and businesses based on Social Security Number mismatches, employee complaints, and prior violations. High-turnover industries and federal contractors are especially vulnerable. Understanding these triggers can help you assess your company’s risk level.
ICE agents review documents for accuracy and completeness, identifying any discrepancies or errors. If minor technical or procedural violations are found, employers are given at least 10 business days to correct the issues. For more serious violations, such as employing unauthorized workers, ICE may impose fines, criminal charges, or cause your business to be ineligible for federal contracts. The final determination is communicated to the employer through various notices, including a Compliance Letter or a Notice of Suspect Documents
Being proactive about I-9 compliance can prevent major issues if ICE selects your company for an audit. An I-9 compliance checklist can help you stay on top of potential audits. That includes routinely auditing records, educating HR personnel and those responsible for hiring on proper Form I-9 completion, and developing an escalation process to have a clear understanding of how you will respond to an ICE audit. Be sure to designate a point person to keep everything on track.
Internal self-audits allow you to identify and correct errors before ICE does. This process should involve examining each Form I-9 for completeness and accuracy. Look for missing information, incorrect dates, expired documents and ensure that all sections are properly completed.
Confirm that record retention practices are compliant. Employers must retain Form I-9 for three years after the date of hire or one year after the date employment ends, whichever is later. Keep detailed records of the audit process, including any corrections made and the date an internal audit was completed. This documentation can be useful if ICE requests information about your compliance efforts.
It is the best practice to inform employees about the proactive audit process and its purpose. Address any concerns they may have and ensure transparency throughout the process. Conducting these reviews regularly will help minimize risk in the event of an audit.
In the event of an audit, you need to demonstrate that the Form I-9 and supporting documents are stored securely and in compliance with DHS guidelines. Using digital record-keeping systems can improve accessibility and accuracy while preventing misplaced or expired documentation.
Since human error is a leading cause of compliance issues, providing ongoing training to HR teams ensures that the Form I-9's are completed correctly from the start. Training should cover common mistakes, document inspection procedures, and how to handle remote verification cases.
If your company receives a Notice of Inspection (NOI), you have just three business days to gather and submit all Form I-9 records to ICE. A fast, strategic response is critical to ensuring compliance and minimizing risk.
ICE requires employers to submit I-9 forms and supporting documentation within three days of receiving an NOI. Failing to meet this deadline can result in additional penalties or further investigation. Now is the time to set a clear internal process for assessing how long it takes to gather I-9s and supporting documents and for auditing your Form I-9s and supporting documents for accuracy and completeness. Develop a response plan proactively and determine who will manage the response and engagement with the agents.
First review the scope of the audit to determine what must be submitted. Properly organizing records is crucial. Categorize documents by current employees, terminated employees, and corrected files. Ensuring that all forms are properly signed, dated, and formatted will help demonstrate compliance and reduce risk during the audit.
If your business is facing an ICE inspection, it’s critical to work with legal experts or compliance consultants (and sometimes, both). Labor law attorneys can review I-9 records, assist in responding to ICE inquiries, and help negotiate potential penalties. Consulting with experts can greatly reduce risks and ensure that your company is handling the audit properly.
Form I-9 violations can result in significant fines, particularly for repeat offenses or unresolved errors. A strong compliance program and regularly updated Form I-9 audit checklist will help protect your business from costly enforcement actions.
Even minor errors on Form I-9 can lead to serious compliance issues. One of the most frequent violations is failing to complete the form on an employee’s first day of employment, which is a legal requirement. Another common mistake is employing unauthorized workers, whether due to fraudulent documents or lack of proper verification.
Additionally, employers are required to verify that all work authorization documents are valid and unexpired. Incomplete or improperly stored I-9 records are also a red flag. Missing signatures, incorrect dates, and lost forms can result in hefty I-9 audit penalties.
Regular internal audits can help catch and correct these mistakes before they become costly compliance failures.
If you discover errors in your Form I-9 records, take corrective action immediately. ICE and DHS consider good faith efforts when determining penalties. This means employers who actively work to correct mistakes—rather than ignoring them—are more likely to receive reduced fines or warnings instead of severe penalties.
Correction procedures must follow specific guidelines. You must make a clear notation with the correct information, include the date of the correction, and initial the change and employers may not change information in Section 1 of Form I-9. If you discover you are missing a Form I-9 for an employee, you should complete a new one immediately and document the reason for the late filing.
Consistently monitoring your compliance efforts will help prevent repeated errors and reduce your risk of failing to complete required forms properly.
Many I-9 compliance failures result from HR teams and hiring managers not fully understanding how to complete and verify Form I-9 correctly. Implement training that covers the entire employment eligibility verification process, including how to inspect work authorization documents, what to do if an employee provides questionable documentation, and how to handle remote verification.
Ongoing education is critical because immigration compliance audit standards frequently change. Employees responsible for I-9 verification should also be trained on the ICE audit inspection process and how to respond to a Notice of Inspection (NOI). By investing in regular compliance training, you reduce the risk of costly violations and ensure that your team is prepared for an I-9 audit at any time.
I-9 compliance isn’t just about fixing errors when they happen—it requires a proactive, long-term strategy. Conducting periodic self-audits ensures that your records remain up-to-date and fully compliant with the latest I-9 recordkeeping requirements. Implementing digital record-keeping systems can streamline document storage, improve accessibility, and reduce the likelihood of missing or incomplete forms.
Staying informed on immigration and customs enforcement updates will help you adapt to any new compliance requirements. Establishing a clear internal policy for managing I-9 records, handling work authorization renewals, and responding to compliance concerns will protect your business from unnecessary risk.
By treating I-9 compliance as an ongoing priority rather than a one-time task, you can reduce the likelihood of ICE inspections and maintain a strong, legally sound workforce.
With increased scrutiny from Homeland Security (DHS) and ICE, taking a proactive approach to I-9 compliance is more important than ever. Employers who fail to comply risk hefty fines, reputational damage, and potential legal action.
OutSolve offers I-9 compliance guidance to help businesses stay ahead of changing regulations. Contact OutSolve today to ensure your organization is fully compliant and prepared for any ICE audit in 2025.