The ABCs of Form I-9 compliance: Ensuring your workforce is verified

The importance of I-9 compliance for avoiding fines and driving value

Good I-9 compliance processes are good for your business. Get the process (and the paperwork) right, and you’ll drive value more quickly from your workforce, as well as avoid some hefty fines.

But get it wrong, and it could end up as front-page news. Back in 2010, fashion retailer Abercrombie & Fitch found this out the hard way, when it was handed a landmark $1M fine for repeated violations.

In today’s current economic environment, I-9 fines are a penalty few businesses can afford, which makes it even more important to run a tight ship when it comes to compliance. In this article, we’ll run you through the basics of I-9: What is it, how do you do it, and best practices for a fully compliant process.

Understanding Form I-9

Let’s start with the basics: What is I-9 compliance, and how does it work? Form I-9 comprises two key sections, plus two supplemental sections:

• Section 1: Employee information and attestation: Employees must fill out their essential information including their legal name, birth date, address, citizenship or immigration status, and other key information relating to their right to work in the United States. Employees must sign the form and provide supporting documents to validate the information given.
• Section 2: Employer or authorized representative review and verification: Employers must verify the employee’s details using documentation provided within three working days of the employee’s first day. They must also attest that employee documentation has been verified.
• Supplement A: Completed by individuals that assist employees to complete section 1—for example, in cases where the employee needs a translator.
• Supplement B: Completed by employers in the case of an employee rehire or reverification.

As an employer, your role in the I-9 process is to make sure that employee I-9 applications and documentation are accurate, verified, and submitted on time. You can find out more about each section’s exact requirements and documentation on the United States Citizenship and Immigration Services (USCIS) website.

Verifying employee identity and employment eligibility

Verifying your employees’ identity and right to work in the US is a critical part of the I-9 process. Failing to review your employees’ supporting documentation and cross-check their identity alongside their completed I-9 form could result in a fine—or even jeopardize your good standing as an employer with systems like E-Verify.

To validate their identity and right to work, employees must present specific forms of identification, including:

• US passport passport or passport card
• Permanent resident card
• Federal, state, or local ID card
• Voter’s registration card
• Employment authorization document with a photograph
• Driver’s license
• Social Security card
• US Citizen ID card

I-9 compliance documents fall into three lists: Lists A, B, and C. Employees must either present documentation from List A, or Lists B and C to comply with regulation. Find more info about I-9 acceptable documents in our comprehensive I-9 Compliance Guide.

These documents can be inspected in a couple of different ways, depending on the I-9 process you’re using to verify new hires—the traditional process, the alternative method, or 100% remotely using Form I-9 software.

Under the traditional I-9 process, employers must conduct an in-person examination of employee documents, verify their authenticity and validity, and provide an attestation that the documents appear genuine. When using the alternative procedure, employers conduct this document check over a live video call with the employee, and verify that the documents match the ones they have on file. To qualify to use the I-9 alternative procedure, organizations must participate in, and be in good standing with, E-Verify. Lastly, employers can use a Form I-9 software to complete the entire process remotely. This can reward them with cost and time savings, particularly for companies that hire in high volumes. For more details, read our blog about choosing the right verification method.

Regardless of which verification method they choose, employers must keep a full record of employee information and documentation for auditing purposes.

Navigating the E-Verify system

The E-Verify system is an online system that enables organizations to validate their employees’ right to work in the United States based on information held in the USCIS and Social Security databases.

E-Verify is an optional step for employers that can be helpful to minimize the risk of compliance errors and simplify document verification. But it does come with a few considerations organizations should bear in mind when integrating it with their I-9 process:

• Implementation protocol: E-Verify must be applied for all new hires across all hiring sites where it is implemented. This means that if you implement it in your New York office, it must be applied for all new hires coming into the organization through this location.
• Compliance standards: Organizations must stay in good standing with E-Verify and follow due diligence to do so.
• Training requirements: Organizations must ensure they provide adequate training on how to use the E-Verify system.
• Administrative burden: For each new hire, employers must create a new case in the E-Verify system and re-enter employee information, leading to the additional risk of clerical errors. WorkBright’s Smart I-9 technology integrates seamlessly with E-Verify, meaning organizations have a lightning fast, fully compliant way to verify employee documents and onboard them at speed.
• Digital infrastructure: Organizations must create the right digital infrastructure to securely retain records for auditing purposes.

Understanding the potential penalties of Form I-9 non-compliance

The stringent requirements around I-9 compliance exist to protect both organizations and their workers. Organizations can verify that their employees are cleared to work in the US, while workers are protected from discrimination or unfair treatment based on their immigration status. This is why non-compliance can carry some severe penalties for organizations, as well as landing you in the public eye.

First, let’s talk monetary penalties. According to 2024 updates, paperwork violations on your I-9 form, including clerical errors, typos, and missing information, can result in fines ranging from $281 to $2,789 per individual for a first offense.

Meanwhile, fines for failing to apply proper document verification checks and hiring someone who isn’t entitled to work in the United States carries a heftier levy up to $27,894 per worker. The nature of the fine depends on your organization’s size, the seriousness of the error, and your good faith attempts to correct it.

Beyond hitting organizations in their pocketbooks, failing to comply with I-9 requirements could result in criminal proceedings, as well as reputational damage to the business and, in the worst case scenario, restrictions on how businesses operate.

Minimizing these risks depends on staying ahead of any changes announced to the I-9 process and its legal requirements, and adjusting your internal processes in line with those changes. Remember that the onus is on you as the employer to make sure you’re following due process and keeping your compliance processes up to date.

Knowing your federal compliance obligations

The Department of Homeland Security (DHS) is responsible for overseeing organizations’ I-9 compliance, ensuring lawful immigration, and protecting workers’ rights. It does this in a few key ways, including:

• Maintaining and updating I-9 documents and processes
• Providing guidance and support to organizations and workers
• Auditing and inspecting employer records
• Investigating cases of non-compliance
• Imposing penalties when indicated

As legislated by the DHS, organizations are required to keep thorough records on each new hire that comes in—whether on paper, or digitally in the case of a remote hire—for up to three years after the date of hire, or one year after the end of employment, depending on which is later. They are also expected to report any discrepancies, errors, or other paperwork violations in their records to the DHS as soon as they’re identified, and take action to correct them.

Ensuring I-9 compliance in the hiring process

Maintaining a tight ship on I-9 compliance isn’t just critical from a regulatory perspective—it’s also important for making sure your employees start their first day on the right foot. Compliance violations can delay when your employees are able to start work, as well as get paid.

But many organizations—especially those with high-volume hiring needs—find it hard to build a fully compliant and scalable I-9 process that stays up-to-date with changing legislation.

Here are five best practice guidelines to follow to keep your processes—and people—compliant:

1. Keep on top of training: Training is essential for avoiding compliance violations—but in some cases, as with E-Verify, it’s also a requirement as part of maintaining good standing. Providing training resources, and revisiting training at regular intervals in line with USCIS updates, will ensure a compliant, consistent process.
2. Standardize policies and processes: With compliance, consistency is key. Creating policies that outline essential information, retaining employee documents, managing E-Verify cases, or identifying your organization’s authorized representatives will standardize and streamline your I-9 compliance process.
3. Create a communications plan for new hires: Few new hires view a mountain of paperwork with glee on their first day. Creating written resources in simple language will help guide employees through the steps of the process and help them understand what to expect. WorkBright’s Smart I-9 features a self-guided I-9 wizard to guide employees through their part of the process without the need for extra hand-holding.
4. Keep records in good order: Retaining records of each new hire, and their right to work, is a legal requirement. But when audit time comes, making sure you have a secure, organized system for retaining employee records will increase operational efficiency and mean nobody’s caught on the back foot scrambling to find the paperwork.
5. Run internal audits: Stress-testing your own I-9 policies and processes with an audit will help identify any gaps or potential risks for errors as government guidance changes. But it can also mean you’re able to raise compliance errors and address them before they get picked up, which could reduce any potential penalties.

Ensuring a verified workforce for your business

Getting Form I-9 compliance right can be tricky. But doing it efficiently can be even trickier. Regular training that familiarizes your employees with the process and documentation is essential to minimizing the risk of errors, while clear communication will help make sure everyone—from your internal team to new hires—fully understands the process. But to drive true operational efficiency, organizations need the right I-9 compliance software.

WorkBright is a fully-compliant, lightning fast solution that helps organizations manage their I-9 compliance workflow. Using WorkBright’s Smart I-9 feature, organizations can correct errors in real time, process completed I-9s within 10 minutes, and check each form automatically. Find out more about how you can give your I-9 process a 350% speed boost.