August 2026 update

ICE updated its I-9 inspection guidance again on August 31. The update does not roll back the March changes that made many common errors substantive, nor does it create new I-9 requirements. Instead, it gives employers a clearer picture of what ICE may look at during an audit and how different violations could affect penalties.

1. Earlier guidance said that failing to meet the requirements for an electronic I-9 system under 8 C.F.R. § 274a.2(e)-(i) could count as a substantive violation. The August update now specifically says electronic systems must be able to produce readable copies with a “compliant audit trail.” This signals that ICE may look beyond the completed I-9 and review the form’s history, including how it was created, signed, corrected, and retained.
2. ICE also added a new notice for employees who lose work authorization. The “Notice of Expired or Rescinded Immigration Status and/or Employment Authorization” tells employers when an employee has lost work authorization between the audit and when the notice is issued. The notice itself does not mean ICE is alleging employer wrongdoing. Still, it gives employers a clear trigger to promptly review the employee’s current work authorization and determine what action is needed.
3. The March guidance combined paperwork violations with knowingly hiring or continuing to employ violations when calculating the violation percentage used for penalties. The August update says ICE will now calculate these separately: one percentage for substantive or uncorrected paperwork violations and another for knowingly hiring or continuing to employ violations. Depending on audit findings, separating the categories can change the base penalty calculation.