As immigration enforcement continues to be a priority for the administration, employers can no longer afford to take a reactive approach to Form I-9 compliance. The best defense against costly fines and reputational damage is a proactive internal audit, before Immigration and Customs Enforcement (ICE) serves a Notice of Inspection (NOI). ICE recently updated its NOI language to state that employers cannot make corrections to I-9 forms after an NOI has been served. This means you may be forced to make corrections in a short period of time after the government completes its audit, rather than taking the time to address them now.
As we’ve seen recently in Nebraska, even employers that go above and beyond by using E-Verify can fail an audit due to its vulnerabilities. In fact, the U.S. government has recently called it ‘reckless’ to rely on E-Verify alone.
Administrative fines can be substantial. If the government found just 20% of your I-9s had errors, the cost starts at over $1000 per I-9. To put this in perspective, a company with 500 employees and a 20% error rate could face at least a $100,000 fine.
What Is a Form I-9 Audit?
A Form I-9 audit is a review of your company’s Employment Eligibility Verification forms to ensure compliance with federal law. ICE initiates official audits by serving a NOI, after which employers have three business days to produce all requested I-9s and supporting documentation.
But waiting until the moment you are served to review your I-9s is risky. Internal audits allow you to identify and correct errors, train staff, and demonstrate good faith compliance potentially reducing penalties if ICE ever does come calling.
Why Conduct an Internal Audit Now?
- Avoid fines and penalties that can add up quickly.
- Allows you the chance to fix technical or procedural errors properly.
- Proactive compliance efforts can help mitigate any possible penalties.
- Prepare your HR team to be ready for any actions taken by the government.
Best Practices for Internal I-9 Audits
- Use an independent third party to conduct the audit. Having internal people review their own work is not advisable.
- Decide whether to audit all I-9s or a representative sample. Use neutral, non-discriminatory criteria to avoid the appearance of targeting specific employees.
- Review the I-9s and properly correct any errors when possible.
- Document the audit process taken.
- Ensure HR staff are trained on I-9 requirements, including document verification, retention rules, and how to handle ICE inquiries.
An internal Form I-9 audit is not just a compliance exercise, but a strategic move to protect your business. Many companies that have taken these steps received fully compliant results when ICE completed their audit. Engaging an independent third-party immigration compliance expert to help your organization can ensure objectivity, eliminate internal conflicts of interest, and bring deep regulatory insight to the process. The Guidepost team, whose team includes several former ICE leaders and agents, has helped clients navigate immigration regulations and improve their compliance.
By identifying and correcting compliance issues before ICE delivers a Notice of Inspection, organizations safeguard themselves against costly penalties, avoid damaging disruptions, and preserve their reputations. Early audits and training empower HR teams to build a culture of diligence and integrity, enable leadership to make informed decisions during mergers and acquisitions, and ensure that every member of the workforce is legitimately employed. Rather than waiting for government intervention, taking initiative today, especially with the guidance of seasoned professionals, demonstrates a commitment to compliance, reduces risk, and gives your company a decisive advantage in the face of growing scrutiny.
Don’t wait for ICE to knock. Start your internal audit today.
