Businesses are required to get an I-9 from every worker they hire. This document is designed to reduce the likelihood of unauthorized workers getting hired in the United States. If someone willfully violates this immigration measure, they can face a charge of $698 to $5,579 for just the first offense. 

Because I-9 audits can happen, it is important to make sure your company is fully prepared. Learn more about common I-9 mistakes and what it takes to ensure your company’s legal compliance. 

Are Hiring Managers and Staff Trained How to Complete I-9s Compliantly? 

At Asure, we recently completed our 2024 HR Benchmark Report. As a part of the report, we surveyed over 1,000 small businesses and asked them about the following topics.

• Recruiting and hiring
• Development
• Benefits
• Onboarding
• Performance
• Compliance
• Retention
• Post-employment

Within each section, we asked companies five questions. In the end, we asked the organizations what their growth was like for the previous year. We found fast-growth and zero-growth businesses had significantly different answers. 

When asked if hiring managers and staff are trained on completing I-9s compliantly, these are the answers we received. 

• 93% of fast-growth companies report training managers and staff to complete I-9s compliantly. 
• 67% of zero-growth businesses were able to report the same thing.

This difference is a 26% spread, which is fairly remarkable. However, the numbers don’t match up with real-world compliance, so it’s likely that many firms think they’re in compliance when they aren’t.

The 9 Most Frequent I-9 Mistakes for Employers and Employees 

To ensure your company is in compliance with employment and immigration laws, it’s important to always fill out an I-9 with new workers. Beforehand, review the following I-9 mistakes so that you know what to avoid. 

1. You Requested Specific Identification Documents

This is by far one of the most common mistakes. When a new hire tries to fill out their I-9, the list of required documents seems daunting. Sometimes, managers will just tell them to bring a driver’s license and Social Security card. 

However, this is a major mistake. If there is an I-9 audit, the auditor will notice that every employee has turned in the exact same type of identification. Because it’s unlikely that every single employee would give you the exact same documents, this could open you up to discrimination issues.

2. The Forms Weren’t Filled Out in Time 

Timeliness is another major mistake when it comes to Form I-9. After the worker comes in for their first day, you have exactly three days to fill out the form. If this form isn’t completed by the fourth day, you’re no longer in compliance.

This is an example of something that managers and staff members need to be trained on. The manager originally wanted to hire someone because they were in need of workers. Because of this, they’ll want the employee to work with or without their I-9 completed because they are understaffed. 

However, your company will be out of compliance if you allow this to happen. Once you explain why I-9s have to be completed right away, it changes the attitude. It also creates a sense of urgency for getting Form I-9 filled out. 

3. There Are Missing Dates or Signatures

Unfortunately, missing dates and signatures are fairly common. There are several locations on the form that need to be dated and signed. While this mistake may be unintentional, it still prevents proper compliance with this rule.

Employees will need to sign and date Section 1 of the I-9. Then, there are lines for employers to sign and date in Sections 2 and 3.

4. Having Untrained Employees Handling Internal I-9 Audits 

Whoever handles your I-9 audit should be trained on what to look for and how to correct mistakes. Internal audits are important because they show your company’s efforts to be in compliance. However, for this audit to be effective, employees must know what they are doing.

For example, an internal audit may uncover that there are missing or incorrect dates. These need to be corrected by drawing a line through the incorrect information and writing the correct information. Then, you must initial and date the I-9 correction. 

If you’re having an untrained employee review and correct these records, it could lead to compliance issues. Without meaning to, they can miss obvious errors or make errors in how they correct documents. 

5. I-9s Are Missing 

Form I-9 was first created in 1986. Starting this year, every employee was required to fill out one of these forms. As an employer, you must keep a worker’s I-9 on file for either three years after the hire date or one year after the termination date, depending on which one is later.

6. There’s a Record of Over-Documentation 

You only need to get the required documentation from your workers. Sometimes, employers will do list C when list A is already done and gather too much documentation. This can trigger an investigation from the Department of Justice’s Immigrants & Employee’s Rights team because over-documentation is a common indicator of discrimination cases.

7. You Filled Out I-9s Before an Offer of Employment 

While it is important to get I-9s filled out, you should never get them filled out early. Legally, I-9s should only be completed after an offer of employment has been made. 

8. A Manager Accepted an Expired Document 

Sometimes, a manager will accept a document without realizing it is expired. To prevent this issue, train management staff to carefully check expiration dates on each document. 

9. The Employee Provided Photocopies of Their Documents

When filling out the I-9, managers should never accept photocopies of an employee’s documents. Your worker needs to bring in the actual documents. The only exception to this rule is birth certificates because you can accept a certified copy of a birth certificate.

Form I-9 doesn’t require you to photocopy the documents you are given. However, if you decide to photocopy these documents for your I-9 compliance records, you must be consistent and photocopy every employee’s records.

What Are the Penalties for I-9 Mistakes? 

If you are the subject of an I-9 audit, there are a few factors that can increase or mitigate the penalties you face.

• Business size
• History of compliance
• Good faith in following the law
• The seriousness of the non-compliance issues
• Unauthorized workers
• Cumulative adjustment

Thanks to recent adjustments, the non-compliance penalties have gone up. 

• Paperwork Violation: $281 to $2,789
• Unlawful Employment of Aliens (First Offense): $698 to $5,579
• Unlawful Employment of Aliens (Second Offense): $5,579 to $13,946
• Unlawful Employment of Aliens (Third Offense): $8,369 to $27,894
• Failure to Notify of Final Non-Confirmation: $973 to $1,942
• Unfair Immigration-Related Employment Practices (First Offense): $575 to $4,610
• Unfair Documentary Practices: $230 to $2,304
• Document Fraud: $575 to $11,524

It’s important to remember that these charges are per person. If you employ 15 people unlawfully, you must multiply the penalty by 15. Similarly, 10 incidents of document fraud will multiply the penalty by 10. Because of this, the penalties for non-compliance can quickly add up. 

Adopt I-9 Best Practices 

Fast-growth companies are better at I-9 compliance because they take time to understand and follow the law. Additionally, I-9 compliance helps them avoid hefty penalties and lawsuits. By learning more about your I-9 requirements, you can help your business become a fast-growth company. 

If you’re interested in learning more about the best onboarding practices, reach out to our team of small business HR and payroll experts today.