Are Your I-9s in Order? What Employers Need to Know in 2025

Are Your I-9s in Order? What Employers Need to Know in 2025

If 2025 has taught business owners anything so far, it’s how to adapt. Changes mandated by the new administration have forced business owners to adjust their processes to meet new standards, while economic uncertainty has led them to consider various contingency plans for the long-term success of their organizations and their people. As HR professionals, we see another area that business owners should take a closer look at this year, in light of the new administration: their Form I-9s. 

Due to increased audits by U.S. Immigration and Customs Enforcement (ICE) in their deportation efforts, business owners must ensure they have properly completed and stored their Form I-9s. In this blog, we’re sharing what business owners need to know about I-9 compliance and management and why it matters.

 

The Cost of Noncompliance With Your I-9s

Accurate and up-to-date employee records are the foundation of HR compliance, and I-9s are no exception. Every business owner, across all industries, must prioritize I-9 compliance, as noncompliance comes with a hefty price. 

The Form I-9, officially known as the Employment Eligibility Verification form, is required for all U.S. employers. It serves to verify both the identity of new hires and their authorization to work in the United States. Maintaining accurate and complete I-9s isn’t just an HR best practice; it’s a legal requirement. Civil fines for I-9 paperwork violations range from $281 to $2,789, and penalties escalate significantly with repeated offenses.

The consequences are even more severe if an employer is found to have knowingly hired or continued to employ someone unauthorized to work in the U.S. In such cases, fines can range from $698 to $27,894 per worker, depending on the number of offenses. Certain industries, such as construction, food services, and agriculture, are under increased scrutiny from U.S. Immigration and Customs Enforcement (ICE), making compliance even more critical for businesses operating in these sectors. 

However, no industry is exempt, and every organization must take I-9 compliance seriously to protect itself from costly violations that could financially destabilize its business. We encourage employers to shift their mindset to view I-9 management as more than routine paperwork; instead, view it as a proactive compliance strategy that safeguards their organization and supports its long-term success.

 

What to Look for During an I-9 Audit

We’ve just reviewed why I-9 compliance is so important. Let’s now examine how your organization can conduct internal audits of its I-9s and what to do if errors are found. During an audit, you should look for several key things, including:

  1. Is the form fully completed and easy to read?
  2. Was the Employee Section (section 1) fully filled out (including a date and signature) either on their first day of employment or after an offer of employment was made?
  3. Was the Employer Section (section 2) filled out within 3 days of the employee starting?
  4. Are all supporting documents filed correctly?
  5. Do all dates match across paperwork and payroll records?
  6. If you have a paper copy of the I-9, does anything interfere with the document’s legibility, such as smudges, hole punches, etc.?
  7. Have you followed proper electronic storage procedures if you have an electronic file?
  8. Are you using the most current version of the Form I-9 for new employees?

 

What to Do if You Discover an Error 

As you complete an internal audit, you may find errors in your documentation, and it’s important to address them carefully and correctly. For minor errors, such as a missing date or incomplete section, the employee or employer should make the correction by drawing a single line through the incorrect information, entering the correct information, and initialing and dating the correction.

However, for significant errors, such as missing sections or using an outdated form, you may need to complete a new Form I-9. Always attach the new form to the original, along with a written explanation of the reason for the correction. It’s important that you never erase or use correction tools, like white-out, on an I-9, which would interfere with the original information. It’s vital that your organization follows best practices when making corrections to maintain transparency.

Moving forward, we recommend that your organization schedule annual audits of your I-9s, although it could be more frequent depending on your needs. Additionally, your HR team should understand compliance standards and updates. This proactive audit process will help protect your business from costly penalties and ensure that your hiring practices remain compliant, consistent, and organized.

 

Best Practices for I-9 Management

Another best practice for your organization’s I-9s is to keep these forms separate from your employee personnel files. There are several reasons why these need to be kept separate, including to:

  • Protect sensitive information, such as social security numbers and immigration statuses
  • Comply with USCIS regulations
  • Assist with inspections if your organization is audited
  • Avoid discrimination claims, as this sensitive information is limited to authorized personnel

Keeping I-9 forms separate makes it easier to respond quickly to an audit or inspection request while protecting unrelated and confidential personnel information. Ideally, your organization should maintain two distinct I-9 files:

  • An I-9 file for active employees that only contains forms for all current employees.
  • A separate I-9 file for terminated employees organized by year of termination is required, as you must retain I-9 forms for a specific period after employment ends—either three years after the date of hire or one year after the date employment ends, whichever is later.

Maintaining this separation not only supports compliance but also promotes better data security, reduces legal risks, and ensures that your organization is prepared in the event of an inspection.

A final best practice is ensuring that your organization uses the correct versions of the form for new employees. A new I-9 form was released on January 20, 2025. It is currently optional, but will be mandatory by the end of the year. 

 

Final Thoughts

I-9 management can seem complicated, but don’t let it overwhelm you and your organization. If you need help managing and self-auditing your I-9s, our team is here to help you review, update, and manage your forms to ensure compliance and avoid penalties. Contact Berger HR Solutions at info@bergerhrsolutions.com or 410-695-9888 to get started.