I-9 Compliance: What Employers Need to Know

Ensuring compliance with employment work authorization requirements is a crucial responsibility for employers. Form I-9 is the official document required by U.S, law that employers use to verify employee identity and employment eligibility of individuals hired in the United States.

With increased workplace investigations and heightened enforcement activity around immigration, HR teams must be proactive about maintaining compliant I-9 processes.

Top Takeaways for HR

• Workplace audits and inspections have surged under the Trump administration, signaling an increased importance to have a tight I-9 process in place to avoid fines and penalties.
• Section 1 must be completed by the employee no later than their first day of employment, and Section 2 must be finalized by the employer within three business days of the hire date.
• Recent regulatory adjustments have elevated common administrative errors from minor procedural oversights into fineable, substantive violations.

What Is Form I-9 and Why Is It Important?

Form I-9 is a mandatory U.S. government document that employers are required to complete for every new employee hired onto their payroll. Also known as the Employment Eligibility Verification form, it verifies both identity and authorization to work in the United States.

The form contains sections that must be completed by both the employee and employer under penalty of perjury. It also includes strict completion timelines that employers must follow.

The importance of I-9 compliance can't be overstated. Employers who fail to properly verify work authorization risk substantial fines, penalties, and potential legal action. The U.S. Department of Homeland Security (DHS) and Immigration and Customs Enforcement (ICE) regularly conduct I-9 audits across organizations nationwide.

In most organizations, Form I-9 compliance falls under the HR function.

HR Pro Tip: Create a standardized onboarding workflow that includes Form I-9 completion checkpoints. Consistency helps reduce missed deadlines and incomplete forms during busy hiring periods.

Understanding Unauthorized Employment

Unauthorized employment occurs when individuals who are not legally eligible to work in the U.S. are employed. This may happen when someone lacks proper documentation or their work authorization has expired.

Proper I-9 compliance helps organizations prevent unauthorized employment and protects employers from federal penalties and fines.

Form I-9 Specifics

The U.S. Citizenship and Immigration Services (USCIS) created Form I-9 as part of an effort to prevent the employment of unauthorized workers. The Immigration Reform and Control Act of 1986 (IRCA) established the federal requirement for identity and work authorization verification through Form I-9.

Form I-9 includes:

• Section 1: Completed by the employee
• Section 2: Completed by the employer
• Supplement A: Identification of Preparer and/or Translator
• Supplement B: Reverification and Rehire (formerly Section 3)

IRCA created three primary obligations for employers:

1. Employers cannot knowingly hire undocumented workers or continue employing individuals after learning they are unauthorized to work.
2. Employers must verify employment eligibility through Form I-9.
3. Employers must avoid discrimination based on national origin, citizenship, or immigration status during hiring and verification.

The requirement applies to all full-time and part-time employees hired as a W-2 employee on or after November 7, 1986, regardless of citizenship or immigration status. Those hired prior to that date don’t fall under IRCA and are not required to complete Form I-9.

E-Verify and Form I-9

E-Verify is an online government system that allows employers to electronically confirm an employee’s identity and work eligibility in the U.S.

While Form I-9 is mandatory for all employers, E-Verify participation is optional for many employers, with some exceptions. E-Verify is required for:

• Federal contractors whose contracts include the Federal Acquisition Regulation (FAR) clause
• Certain states
• Employers conducting remote I-9 document inspections through video verification rather than in person

E-Verify compares Form I-9 information against records maintained by the Social Security Administration (SSA) and DHS. Possible E-Verify results include:

• Employment Authorized: Information matches government records.
• Tentative Non-Confirmation (TNC): Information discrepancies require additional action.

HR IRL: A remote employee starts work from another state and cannot appear in person for document inspection. If your organization participates in E-Verify, you may use remote verification procedures through a live video interaction while maintaining compliance with USCIS guidance.

Employers using remote verification should establish written procedures and train HR staff to apply the process consistently across all hires.

Employee vs. Employer Responsibilities

Both employees and employers have responsibilities during the I-9 process.

Employees must provide and complete:

• Section 1 information must be completed by the employee.
• Required identity and employment authorization documentation must be produced by the employee.
• Accurate personal information must be supplied by the employee.
• Signed attestation by the employee confirming the information is truthful.

Employers must:

• Review employee documentation and complete Section 2 verification.
• Ensure documents appear genuine and relate to the employee.
• Complete required sections within mandated timelines.
• Avoid specifying which documents employees should present.
• Store the I-9 documentation in accordance with USCIS guidelines.

The List of Acceptable Documents determines which records satisfy identity and work authorization requirements.

Key Timeframes and Deadlines

Form I-9 deadlines are part of IRCA’s compliance and are non-negotiable.

Employees must complete Section 1:

• After accepting a job offer
• No later than their first day of work

Employers must complete Section 2:

• Within three business days of the employee’s start date
• If an employee works fewer than three days, Section 2 must be completed no later than the employee’s first day of work for pay. This ensures that the verification process is completed promptly, even for short-term employment.

HR Pro Tip: Set automated reminders within your onboarding or HRIS platform to track Form I-9 completion deadlines and reverification dates.

How to Complete Form I-9

Let’s breakdown the two main components of Form I-9, Section 1 and Section 2, step-by-step. USCIS also has a comprehensive I-9 handbook for employers.

Section 1: Employee Information and Attestation

Employees must provide:

• Full name
• Address
• Date of birth
• Social Security number
• Email address
• Phone number
• Citizenship or immigration status
• Work authorization status (U.S. citizen, permanent resident, etc.)

Employees must also sign and date the form under penalty of perjury. Missing information in Section 1 may result in compliance violations.

Section 2: Employer Review and Verification

Section 2 may be completed by:

• HR personnel
• Hiring managers
• An authorized I-9 representative

Within three business days of the employee’s start date, the employer must:

• Examine employee documents
• Determine documents appear genuine and relate to the employee
• Record document information
• Enter employment start date
• Sign and date the form

Any missing information in Section 2 may also result in violations.

Acceptable Employee Documents for I-9 Verification

The U.S. government provides a List of Acceptable Documents and categorizes the documents into three groups:

List A Documents - Establish both identity and employment authorization and must be unexpired, such as:

• U.S. passport
• Permanent Resident Card

List B Documents - Establish identity only, such as:

• Driver’s license
• State-issued ID card

List C Documents - Establish employment authorization only, such as:

• Social Security card
• Birth certificate

Employees must provide either:

• One List A document, or
• One List B document plus one List C document

Employers cannot instruct employees which documents to present.

Remote Verification Considerations for Hybrid and Remote Workers

As remote and hybrid work models continue, employers should evaluate compliant remote verification procedures.

Employers enrolled in E-Verify may inspect documents remotely using live video interactions. USCIS enacted remote verification guidance in August 2023 that can be found here.

Remote verification procedures should include:

• Consistent written processes
• Secure document handling practices
• Proper employee training
• Documentation of remote inspection procedures

Form I-9 Retention Rules

HR teams are typically responsible for maintaining Form I-9 records according to federal I-9 retention rules.

Employers must retain Form I-9 for all current employees. For terminated employees, employers must retain records for:

• Three years after the date of hire, or
• One year after termination

Whichever date is later determines the purge date.

It is generally recommended to store Form I-9 separately from personnel files to:

• Simplify government inspections
• Protect sensitive employee information
• Improve privacy and confidentiality compliance

HR Pro Tip: Conduct annual or bi-annual retention reviews to identify outdated I-9 forms eligible for purging. Maintaining unnecessary forms can increase audit exposure.