Employers of all types and sizes across every industry must collect and verify an I-9 form from each new hire before their first day on the job. This employment verification process ensures the new hire is eligible to work in the United States. While fines for failure to comply with I-9 regulations have always been in place, the 2024 I-9 fine increases are significantly higher than in previous years. Here’s what employers need to know about the updated penalties and how to stay compliant to avoid them.
I-9 Form Compliance Requirements: What Employers Need to Know
Form I-9, Employment Eligibility Verification, is issued by US Citizenship and Immigration Services (USCIS), a branch of the Department of Homeland Security (DHS). Employers must provide this form to both US citizens and noncitizens to verify their eligibility to work in the United States. The I-9 form requires proof of identity and citizenship, or if nonresident, proof of eligibility to work, such as a visa.
Employers must retain completed I-9 forms for at least three years after the employee’s hire date or one year after termination, whichever is later. These forms must be readily available in case of inspection by federal agencies.
Employers are responsible for completing Section 2 of the I-9 form within three business days of the employee’s hire date. Failure to do so can result in substantial financial penalties for violating the Immigration and Naturalization Act (INA).
2024 I-9 Fine Increases: A Breakdown of New Penalties
Under the Federal Civil Penalties Inflation Adjustment Improvements Act of 2015, the Department of Homeland Security (DHS) can adjust I-9 violation penalties for inflation. These adjustments, initially minor, have now drastically increased in 2024 due to rising inflation. The new I-9 fines are up to ten times higher than previous penalties.
- I-9 paperwork violations now range from $281 to $2,789 per form.
- Knowingly employing unauthorized workers can result in fines ranging from $698 to $5,579 per violation for a first offense, with penalties reaching up to $27,894 for repeat offenders.
These I-9 fine increases particularly affect industries that rely on large and diverse workforces, such as food services, agriculture, and manufacturing, where compliance errors can add up quickly. Employers in high-turnover industries need to exercise extra care to ensure both employees and employers are completing I-9 forms correctly.
Avoid Common I-9 Compliance Mistakes: Key Areas to Watch
A majority of I-9 errors are clerical and can be easily corrected if caught early. However, even small mistakes can lead to costly penalties. Below are the most common errors for both employees and employers:
- Employee Mistakes:
- Incomplete personal information
- Missing signature or date
- Incorrect citizenship status box checked
- Missing A-number or USCIS number if status is “lawful permanent resident”
- Employer Mistakes:
- Missing employee hire date in Section 2
- Incomplete business information (name, address)
- Failing to sign or date the form
- For rehires, missing required information in Supplement B
Steps to Ensure I-9 Compliance and Avoid Hefty Fines
To protect your business from the new I-9 fine increases, take the following steps to stay compliant:
- Conduct Regular Audits: Review I-9 forms for current and former employees to ensure compliance. Consider using automated solutions to streamline this process.
- Train HR Staff: Ensure HR teams are fully trained on I-9 procedures, including how to accurately collect and store documents during the onboarding process.
- Use Automated Tools: Automation can help reduce errors and ensure proper documentation is collected within the required timeframe.
How Payroll and HR Services Can Help with I-9 Compliance
Outsourcing payroll and HR services, such as those offered by ASAP Payroll, can greatly assist with I-9 compliance. These services ensure accurate recordkeeping and up-to-date compliance with immigration laws. By partnering with a specialized service like ASAP Payroll, you can focus on running your business while leaving complex employment verification tasks to the experts.
Ensuring I-9 compliance is critical, especially with the steep I-9 fine increases in 2024. A small mistake can lead to a major financial burden, but proactive measures can protect your business.
Don’t let I-9 compliance mistakes put your business at risk. Contact ASAP Payroll today for expert assistance in managing your I-9 forms and protecting your business from costly fines.
