Form I-9 penalties increase
Higher fines have taken effect for Form I-9 errors and for employers that hire people who are not authorized to work in the U.S.
The Department of Homeland Security has adjusted penalties for inflation and published the revised amounts in the Federal Register. The new penalties are as follows:
- $288 to $2,861 for paperwork violations
- $716 to $5,724 per worker for knowingly hiring, recruiting, referring, or retaining unauthorized workers (first offense)
- $5,724 to $14,308 per worker for knowingly hiring, recruiting, referring, or retaining unauthorized workers (second offense)
- $8,586 to $28,619 per worker for knowingly hiring, recruiting, referring, or retaining unauthorized workers (third or subsequent offense)
The higher penalties impact fines assessed after January 2, 2025.
What is the Form I-9?
A Form I-9 needs to be completed for every new employee a company hires. The form is used to verify an employee’s identity and eligibility to work in the U.S.
Employees complete the section of the form asking for identifying information such as name, address, and date of birth. They also show the employer documents that prove their identity and eligibility to work in the U.S., such as a U.S. passport or a driver’s license and birth certificate.
The employer reviews the documents, verifies that they are acceptable, and lists them on the form.
A Form I-9 is not needed if a company hires independent contractors, freelancers, or other people who are not classified as company employees.
How long does the Form I-9 need to be kept on file?
Employers must have a Form I-9 on file for all employees and must keep the form for a year after an employee leaves the company. If employees are with a company for two years or less, the form must be kept for three years after the first day of employment.
The forms may be inspected by U.S. Immigration and Customs Enforcement officials. An employer receiving a Notice of Inspection has at least three business days to product the requested forms.
Key to remember: Employers need to be diligent about completing and maintaining the Form I-9, as well as ensuring they are only hiring individuals eligible to work in the U.S., as they face higher fines for noncompliance.