Are Your I-9s Audit Ready?

If there’s one federal requirement that consistently blindsides small and midsize businesses, it’s the Form I-9. I can’t tell you how many employers I’ve worked with who either skip the form entirely or fill it out half-heartedly—often because they genuinely didn’t know it was required.

Let me be clear:

Every employer must complete Form I-9 for every employee hired after November 6, 1986.

Citizens, non-citizens, part-time, full-time, seasonal, temporary—everyone. No exceptions.

And failing to complete I-9s properly is not a minor mistake. It’s a costly compliance risk, and enforcement is only getting tighter.

Yes, You Really Are Required to Do This—And Most Employers Don’t Realize It

I see it constantly. Employers assume:

• “They’re a U.S. citizen, so I don’t need an I-9.”
• “I’ve known them forever—they don’t need paperwork.”
• “We’re tiny. No one audits small businesses.”
• “Part-time and temporary workers don’t count, right?”

Wrong on all counts.

Federal law requires a completed I-9 for every employee, regardless of work status, hours, or how long you’ve known them. And the form must be completed on time, not weeks later when someone finds it on your desk.

The Rules Are Clear—And the Clock Starts on Day One

Form I-9 has strict deadlines:

• Section 1 (Employee):
  Must be completed no later than the first day of work.
• Section 2 (Employer):
  Must be completed within 3 business days of the employee’s first day of work, after reviewing original, unexpired documents.

Remote verification is only allowed if you participate in E-Verify and use the alternative verification procedure.

Late forms, missing forms, or incorrectly completed forms are violations—even if the employee is fully authorized to work.

Federal Enforcement Is Increasing—and the Fines Add Up Fast

With the current administration’s focus on illegal immigration and employer compliance, I-9 audits are increasing, and small employers are absolutely in the crosshairs.

Violations can cost hundreds to thousands of dollars per employee, including:

• Missing I-9s
• Incomplete or incorrect forms
• Late completion
• Improper document review
• Improper storage
• Knowingly hiring unauthorized workers
• 
  

I’ve seen small employers buried by fines simply because they didn’t understand the requirements.

Good-Faith Efforts Can Reduce Penalties—This Is Where an Audit Helps

If you’re suddenly realizing your I-9s are incomplete or nonexistent, don’t panic. DHS looks favorably on employers who:

• Conduct internal audits
• Correct administrative errors
• Implement proper processes
• Document improvements

A good-faith effort can significantly reduce penalties and—even better—keep your business off the government’s radar for future enforcement.

Never Put Anyone on Payroll Without Confirming Work Authorization

This is basic compliance, yet many businesses get it wrong. Before you add anyone to payroll:

• Employee completes Section 1
• You examine original documents in person (or virtually if you qualify)
• You complete Section 2 within three business days

A driver’s license alone is not enough.   A Social Security card alone is not enough. Instructions are provided with the I-9 Form so you will know what an employee needs to provide.  You're not expected to be a documents expert, but if a document looks altered, suspicious, or inconsistent, you must request a different form of verification before completing the I-9.

And no, “I trust them” is not a compliance strategy.

Florida Employers: This Is Only Getting Stricter

In Florida, the law currently requires private employers with 25 or more employees to use E-Verify.  E-Verify is a free online system run by the Department of Homeland Security that allows employers to confirm an employee’s identity and U.S. work authorization by electronically matching the information from their Form I-9 against federal government records.

And it’s going further.

A bill mandating E-Verify for all employees nearly passed last legislative session. Even though it didn’t cross the finish line, this is very likely not the end of the effort. The trend is clear: more verification, more oversight, more enforcement.

I-9 Storage and Retention Rules (Many Employers Don’t Know These Either)

Employers must retain an I-9 for:

• 3 years after the date of hire, OR
• 1 year after termination, whichever is later.

 Get rid of the ones you can.  You can be penalized for errors on the forms that are no longer required to be retained. 

Additional requirements:

• I-9s must be produced within 3 business days if DHS requests them.
• They should be stored separately from personnel files.
• It's a good idea to keep copies of the documents with the I-9 for verification purposes.
• Electronic storage is allowed, but systems must meet federal standards.

These rules matter just as much as completing the form.

Be Proactive. Protect Your Company.

I-9 compliance is one of the simplest HR tasks to get right—and one of the costliest to ignore. If you’re unsure whether your I-9s are complete, accurate, or even on file, now is the time to clean it up.

Your options:

• Conduct an internal audit
• Bring in a consultant (like me!) to review and correct your forms
• Implement a standardized onboarding process
• Add E-Verify even if you’re not required to (yet)

Your business, your reputation, and your wallet are far better off when you handle this before an auditor comes knocking.