4 Steps to ensure Form I-9 compliance

Importance of Form I-9 compliance

Employers in the U.S. are legally mandated to verify the identity and employment eligibility of every new hire through the Form I-9 process. This requirement is outlined under the U.S. Citizenship and Immigration Services (USCIS) under the Immigration Reform and Control Act (IRCA). The latest version of the Form I-9 Employment Eligibility Verification became mandatory for all employers beginning November 1, 2023.

This updated form includes important changes aimed at streamlining the employment verification process while ensuring compliance with federal regulations. Employers must use the revised form to verify the identity and work eligibility of new hires, as using outdated versions could result in penalties.

Non-compliance, whether intentional or accidental, can lead to fines, lawsuits, and even criminal charges. Non-compliance with Form I-9 requirements can result in significant penalties. Fines for paperwork violations range from $281 to $2,789 per Form I-9. Civil penalties for knowingly hiring, recruiting, referring, or retaining unauthorized individuals are significant and vary depending on the offense. For a first-time violation, the penalties range from $698 to $5,579 per unauthorized worker. It’s worth nothing that specific penalty ranges may depend on factors such as the employer’s history of violations and the severity of the violation.

Understanding and correctly completing this new version is crucial for maintaining compliance. To help your company navigate these changes, we’ve outlined four essential steps every employer should follow. These steps address critical aspects of compliance.

Step 1: Complete verifications on time

A key step to Form I-9 compliance is ensuring the form is completed within the required timeframe. Employers must complete Section 1 of the form by the employee’s first day of work for pay. This section requires the employee to attest to their identity and work authorization status.

Section 2, which is completed by the employer, must be finalized no later than three business days after the employee’s first day of work. This section requires the employer to review and verify the employee’s documentation to confirm their eligibility to work in the United States. Missing these deadlines can result in non-compliance, exposing your business to penalties.

Tips for ensuring timely completion

• Use digital tools like mobile apps or calendar applications on your work computer to set reminders for completing Form I-9 tasks
• Follow a new hire checklist that includes all onboarding steps to ensure nothing is overlooked during the hiring process

Step 2: Conduct regular I-9 self-audits

Performing regular self-audits of your Form I-9s is a proactive step to ensure compliance and identify errors before they lead to penalties. A self-audit allows employers to review completed forms for accuracy, completeness, and compliance with the latest regulations.

Self-audits help correct mistakes while providing an opportunity to improve processes. By identifying trends in errors, employers can implement targeted training for hiring managers and HR teams, ensuring consistent compliance across the organization.

Tips for conducting self-audits

• Review each Form I-9 for missing signatures, correct version, incomplete sections, and expired documentation
• Establish a schedule for conducting audits regularly
• Ensure that your system for tracking and auditing Form I-9s is consistently updated to align with current regulations. Keep a record of which employees’ forms may be due for audit, taking into account factors such as changes in employment status, expiration of documents, or updates to I-9 regulations.

Step 3: Stay organized

Proper organization of your employees’ Form I-9s, and copies of the accompanying Form I-9 acceptable documents, is essential for maintaining compliance and ensuring a smooth audit process. Employers must verify the identity and work eligibility of new hires by reviewing specific documentation. These documents are divided into three categories:

• List A: Establish both identity and work authorization (e.g., U.S. passport, permanent resident card)
• List B: Establish identity (e.g., driver’s license, state-issued ID card)
• List C: Establish work eligibility (e.g., Social Security card, birth certificate)

Employees must provide one document from List A, or a document from both List B and C.

By organizing digital and printable I-9 forms and acceptable documents in a centralized, well-maintained system, employers reduce the risk of misplacing paperwork. This is especially important when handling large numbers of hires or maintaining records over a long period.

Retention reminder: Employers must retain Form I-9s for three years after the date of hire or one year after the employee leaves the company, whichever is later. Failure to comply with retention requirements could result in penalties during an audit.

Step 4: Keep up with changes in I-9 regulations

The U.S. Citizenship and Immigration Services (USCIS) regularly updates the Form I-9 to reflect changes in immigration laws and other regulatory requirements. It’s important to implement a process for verifying that the latest version of the form is being used at all times. Using outdated forms or failing to update them within the required timeframe can result in penalties.

Tips for training HR teams on I-9 compliance

Comprehensive training for HR staff and hiring managers is a cornerstone of maintaining compliance. Training ensures that those responsible for onboarding new employees understand essential procedures and can adhere to federal regulations.

Your team should be trained on

• Acceptable documents
• How to properly complete sections 1 and 2
• Ways to recognize and fix common errors
• The latest updates to the Form I-9
• Internal organizational structure

Ways to enhance Form I-9 training

• Real-life examples and case studies: Use examples that demonstrate the consequences of non-compliance, including penalties or legal issues.
• Step-by-step walkthroughs: Provide detailed, hands-on demonstrations of how to properly complete the form.
• Interactive assessments: An interactive approach that reinforces learning and highlights areas where further clarification may be needed.

Incorporating Form I-9 training into the onboarding of your HR team helps to ensure a culture of accountability and preparedness. You’ll want to ensure that the training material is updated regularly to reflect changes in I-9 procedures and regulations, too.

Ensure ongoing Form I-9 compliance

By staying proactive and informed about Form I-9 changes, employers can avoid costly penalties and streamline their hiring processes. A well-trained team with up-to-date resources ensures accurate I-9 completion, reducing errors and mitigating compliance risks.

Watch the video below for a concise overview of these steps, including guidance on correcting common errors to maintain compliance and avoid penalties. By following these practices, your organization can uphold legal standards, protect against costly repercussions, and foster a fair and lawful workforce built on integrity and adherence to regulations.