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Hiring employees comes with a lot of responsibilities. One of the most overlooked tasks is properly completing the Form I-9. Every U.S. employer must verify the identity and work authorization of anyone they hire. Failing to do so can lead to severe penalties and unwanted attention from federal agencies. Whether your team works on-site or remotely, understanding how to handle I-9s is key to staying compliant. Here’s what you need to know to avoid costly mistakes and keep your hiring process on track.
What Is the I-9 and Why Does it Matter?
The I-9 was created under the Immigration Reform and Control Act (IRCA) of 1986. It requires employers to review documents provided by employees to confirm their authorization to work in the country. The process applies to all employees, both citizens and noncitizens.
Having a properly completed I-9 on file protects your business from hefty fines and legal trouble. It also helps maintain a workforce that meets regulatory requirements. The form itself seems simple, but mistakes can be costly.
The Cost of Noncompliance
I-9 compliance is not optional. Federal law requires all U.S. employers to complete and retain a Form I-9 for every individual hired. Mistakes or oversights come with a steep price. Here are some of the penalties businesses can face for noncompliance.
- Paperwork Violations: Employers can face fines ranging from $110 to $1,100 per form for failing to properly complete, retain, or make available for inspection the Form I-9.
- Knowingly Hiring Unauthorized Workers: Penalties for knowingly hiring or continuing to employ unauthorized workers range from $250 to $5,500 per worker.
- Document Fraud: Individuals who knowingly commit or participate in document fraud may be fined between $375 and $3,200 per document for the first offense and between $3,200 and $6,500 per document for subsequent offenses.
During the first Trump administration, Immigration and Customs Enforcement (ICE) increased their I-9 audits from roughly 1,360 in 2017 to almost 6,000 in 2018. ICE planned to conduct 15,000 audits in 2020 before the COVID-19 pandemic.
I-9 Compliance for Remote Workers
Navigating I-9 compliance for remote employees is a unique challenge, especially with the reinstatement of in-person document verification requirements.
Ongoing Requirement for Physical Document Inspection
As of July 31, 2023, the Department of Homeland Security (DHS) ended the temporary COVID-19 flexibilities that allowed remote inspection of I-9 documents. Employers must now conduct in-person physical inspections of identity and employment authorization documents for all employees, including remote workers.
Alternative Procedure for E-Verify Participants
Employers enrolled in E-Verify and in good standing have the option to use a DHS-authorized alternative procedure for remote document examination. Here’s what that involves.
- Receiving and reviewing copies (front and back) of the employee’s documents.
- Conducting a live video interaction with the employee to verify the documents.
- Retaining clear and legible copies of the documentation.
- Indicating the use of the alternative procedure on Form I-9.
If you choose this method, you must apply it consistently and without discrimination.
Addressing Challenges with Remote Hires
If you are not enrolled in E-Verify or opt not to use the alternative procedure, verifying documents is challenging. Your options include designating an authorized representative to complete Section 2 on your behalf. This representative can be any person you designate, like a notary public or a third-party agent. However, you remain liable for any errors or omissions.
The Role of a PEO in I-9 Compliance
While a Professional Employer Organization (PEO) can help with administrative tasks, you remain legally responsible for verifying each employee’s identity and work authorization.
You are still required to physically examine the original documents presented by new hires to confirm their identity and employment eligibility. Even if a PEO manages other parts of onboarding, they cannot complete this step on your behalf unless you designate them as an authorized representative. Even then, you are still responsible for any errors or omissions.
Best Practices for Training and Oversight
Here are some ways to maintain accuracy and compliance when using an authorized representative.
- Provide Clear Instructions: Offer step-by-step guidance on completing Section 2, including examining original documents and filling out the form correctly.
- Use Standardized Materials: Supply checklists or reference sheets to ensure consistency across representatives.
- Conduct Periodic Reviews: Regularly audit completed I-9 forms to promptly catch and correct any mistakes.
- Stay Updated: Keep your representatives informed about any Form I-9 requirements or procedures changes.
By carefully selecting your authorized representatives, you can streamline the I-9 process while maintaining compliance.
The Bottom Line on I-9 Compliance
Compliance with I-9 requirements protects your business and builds confidence in your hiring process. With remote work on the rise, following the rules carefully is more important than ever. Mistakes are costly. The process may feel overwhelming, but you don’t have to manage it alone. Pinnacle Employee Services can guide you through I-9 compliance and help you stay organized. We’re here to help you focus on growing your team so you can grow your business.
eed help with I-9 compliance? Contact us for your HR Review and Needs Analysis today!