Employers should prepare for increased I-9 audits and raids. Employers should prepare for increased I-9 audits and potential ICE raids. During the first Trump administration, audits surged from 3,000 to 6,000 annually in the initial two years, with expectations of 12,000-15,000 before the pandemic slowed efforts. Raids, which resumed in 2018 after a decade-long hiatus, may also be more common in the coming presidential term.

To prepare, employers should focus on auditing and organizing their I-9 files, and establishing a response plan in the event of an audit or ICE raid.  The audit response time is extremely short – 3 business days – so ensuring that the notice of inspection or subpoena gets to the right person quickly is critical, and having these files separate and organized will make the response go much more smoothly.  In addition, ICE has substantial discretion when reviewing files and assessing fines, so full cooperation and delivering an organized and timely response may help minimize any financial impact on the company.

Fines are assessed for each “substantive” error and each “technical” error that is not corrected within 10 days.  Again, ICE has a lot of discretion and differentiates between substantive and technical errors based on “whether it could have led to hiring an unauthorized alien”.  Fine amounts increase every year based on inflation and increases for 2025 were just announced.  Examples include:

• Substantive or uncorrected technical violations: $288 – $2861
• “Knowingly” employing (1^st): $716 – $5,724 (*includes should have known)
• “Knowingly” employing (2^nd): $5,724 – $14,308
• “Knowingly” additional: $8,586 – $28,619
• Document Fraud (1^st): $590 – $4,730
• Document Fraud (additional): $4,730 – $ 11,823

Fines are assessed per violation and vary depending on the company’s error rate and ICE discretion. An error rate of 0-9% will usually result in a base per-error fine at the lower end of the scale; an error rate of 50% or more result in base fines at the higher end.  ICE also considers five factors for adjustments that can increase or decrease fines by up to 25%:  business size, good faith, the seriousness of the violations, compliance history, and the number of unauthorized workers discovered.

Criminal charges against owners and managers/field supervisors and the loss of any federal contracts are also possible, and ICE can share your information with other agencies such as the IRS, DOL, or state equivalents.

ICE does not regularly publish the results of its audits, but some public examples include:

• A northwest staffing agency with 50 Full-time employees and hundreds of temporary employees was audited after ICE received a tip. ICE found over 1,400 violations (including backdated forms), and imposed a $2 million fine.  After an appeal, an administrative judge reduced it to $1.5 million, but it also cost the company more than $100,000 in attorney’s fees.
• An oil field company failed to prepare and provide fifty-five I-9 forms. It was fined $1,500 for each form violation, and $2,000 for each charge of unauthorized employment, for a total of $107,000.
• An events planning company was charged with over 800 violations, mostly due to the failure to sign Section 2. It was fined $605,000 (at 2015 rates – that amount would be much higher today).
• A trailer manufacturer settled a DOJ discrimination case after it terminated an employee who refused to revert his permanent resident card. The company was required to pay a $218,000 fine and set up a $218,000 fund to compensate other affected individuals, provide mandatory training to all employees, and submit to two years of monitoring by the DOJ.

Employers should also be aware that ICE is authorized to conduct unannounced visits and search public areas such as reception or dining spaces. With a subpoena or administrative warrant, they can seize records, and with a judicial warrant, they may search private areas.

To prepare, employers are encouraged to:

• Designate a point of contact to handle ICE interactions.
• Train employees to remain calm, direct ICE to management, and avoid providing unnecessary information.
• Ensure an attorney is on call for immediate guidance.

To learn more about the best HR and compliance services for your company, reach out to our team of small business HR and payroll experts today.