I-9 Audit Checklist: Stay Compliant & Avoid Penalties
Employment Audits Are on the Rise—Is Your Business Ready?
In recent weeks, the federal government has increased its enforcement of I-9 compliance, leading to a rise in workplace audits. Both U.S. Immigration & Customs Enforcement (ICE) and the Wage & Hour Division of the U.S. Department of Labor conduct I-9 audits, and non-compliance can lead to steep fines and legal consequences.
These audits ensure that employers properly verify the work authorization of their employees. Failure to comply can result in substantial fines, legal action, and reputational damage. Because of this heightened scrutiny, businesses should take proactive steps to strengthen their I-9 compliance and prepare for potential audits.
Questions We‘ll Address Regarding I-9’s and Employment Verification
Why I-9 Audits Are Increasing in 2025
Stricter Federal Immigration Enforcement
The federal government has prioritized workplace immigration enforcement, increasing scrutiny on I-9 compliance. Agencies like ICE and the Wage & Hour Division are conducting more audits and imposing steeper penalties for violations.
Technology & Data Analytics Are Changing I-9 Audits
Federal agencies are using artificial intelligence and data analytics to detect inconsistencies in I-9 forms. These tools allow authorities to flag potential violations more efficiently, increasing the likelihood of an audit.
Higher Penalties for I-9 Non-Compliance
As of 2025, penalties for I-9 violations have risen significantly. Employers may face fines ranging from hundreds to thousands of dollars per violation, with repeat offenders at risk of even harsher consequences.
Remote Work Adds Complexity to I-9 Compliance
The growth of remote and hybrid work has made I-9 verification more challenging. Employers must ensure they are following updated DHS guidelines for verifying work authorization remotely, as errors in this process can trigger compliance issues.
I-9 Audit Checklist: Steps to Ensure Compliance
Avoiding I-9 fines and penalties starts with one critical step: conducting regular internal audits. With increased federal enforcement and stricter compliance expectations, businesses that fail to properly complete and store I-9 forms are more likely to face audits, fines, or even legal action. By proactively auditing your I-9 forms, you can correct errors before they become costly mistakes.
Step 1 – Organizing & Reviewing I-9 Forms
Employers must maintain completed I-9 forms for:
- Every current employee hired after November 6, 1986
- Former employees whose retention period has not expired (three years from the hire date or one year after termination, whichever is later)
Step 2 – Checking Work Authorization & Avoiding Common Mistakes
Review each I-9 form carefully for missing or incorrect information. Common errors include:
- Incomplete or inaccurate employee details in Section 1
- Employee failing to complete Section 1 on their first day
- Employer representative missing a signature in Section 2
- Section 2 not completed by the employee’s third day
- Failure to reverify expiring work authorization in Section 3
Step 3 – Verifying I-9 Documents for Accuracy
Employers must verify that identity and work authorization documents:
- Appear legitimate and unexpired
- Match the information recorded on the I-9 form
- Were freely chosen by the employee, without employer influence, to avoid discrimination violations
Step 4 – Correcting I-9 Form Errors the Right Way
If errors are found:
- Draw a single line through incorrect information, enter the correct details, then initial and date the correction.
- Never use white-out or backdate entries.
- If a form is missing, have the employee complete a new I-9 immediately.
Step 5 – Securely Storing I-9 Forms to Meet Compliance Standards
I-9 forms should be stored separately from general employee records in a secure location, either electronically or in a locked filing system. Always follow federal retention requirements to remain compliant.
Need expert help with your I-9 compliance? AAIM’s HR Audits help businesses proactively identify compliance gaps before an official inspection. Stay ahead of costly fines—learn more about our audit services today.
What to Do If Your Business Faces an I-9 Audit
If your business receives a Notice of Inspection (NOI) from federal authorities, immediate action is crucial. Both ICE and the Wage & Hour Division conduct audits, and failing to respond properly can lead to severe penalties.
When You Receive a Notice of Inspection (NOI)
Employers typically have three business days to provide I-9 forms for inspection. Missing this deadline can escalate penalties, so it’s critical to act quickly.
Before You Submit Your Documents
Review your records before turning them over to identify missing forms or errors. If you find mistakes, correct them following USCIS guidelines.
Verifying work authorization is just the first step. Ensure your new hires meet compliance standards with AAIM’s Background Verification Services and streamline onboarding with OnboardEXP. Get compliant, stay efficient.
Final Steps to Strengthen I-9 Compliance
To protect your business from penalties and ensure ongoing compliance, employers should take a proactive approach to I-9 management. This includes:
- Conducting regular internal audits to identify and correct errors before an official inspection.
- Providing ongoing training for HR staff on I-9 best practices, including document verification and anti-discrimination policies.
- Staying informed on evolving I-9 regulations to ensure compliance with the latest federal requirements.
I-9 compliance is just one piece of the puzzle. AAIM’s Labor Law Poster Services help employers meet federal and state posting requirements—keeping businesses compliant and penalty-free.
By making I-9 compliance a continuous process—not just a reaction to audits—businesses can reduce risks, avoid fines, and confidently navigate work authorization requirements.
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