Should we do an internal I-9 Audit? If you are an employer in the United States, then you are obligated to comply with U.S. immigration laws. Not only can this protect your company’s reputation, but it also will help you avoid expensive penalties. One of the most known immigration compliance obligations for U.S. employers is properly completing and maintaining a Form I-9 for all employees.
What is Form I-9?
Form I-9, officially known as the Employment Eligibility Verification form, is used to verify an employee’s identity and their authorization to work in the U.S. Employers are required to ensure that these forms are filled out accurately and retained for the appropriate period of time.
Why Conduct an Internal I-9 Audit?
An internal I-9 audit is a proactive way to ensure that your company is in full compliance with federal regulations. Whether you decide to review your I-9 records due to a change in company policies or part of an ongoing compliance program, conducting regular I-9 audits can help you catch potential issues before they become serious problems. For example, conducting regular I-9 audits can help employers:
1. Avoid Penalties: The U.S. Department of Homeland Security (DHS) and U.S. Immigration and Customs Enforcement (ICE) enforce strict I-9 regulation compliance. In fact, employers who fail to complete, update, or retain I-9 forms properly can face significant fines. Penalties range from small fines for minor mistakes to severe financial consequences for more serious infractions. An internal audit helps mitigate the risk of costly fines by ensuring your forms are in compliance before you’re scrutinized by an external authority.
2. Ensure Proper Documentation: One of the most common mistakes employers make is failing to ensure that employees submit the correct documentation for work authorization. An internal I-9 audit can ensure that the appropriate documents are being used, and that they are also up-to-date. It also helps ensure that any expired work authorization documents are flagged, so corrective action can be taken.
Steps to Conduct an Internal I-9 Audit
Step 1: Review Your I-9 Records Start by reviewing the I-9 forms you currently have on file. For each employee, verify that the correct version of the form was used, that it is legible and that it has been completed in its entirety. Double-check that all required information is in the form and that it is signed and dated by both the employee and the employer or its authorized representative.
Step 2: Confirm Document Completeness and Accuracy If you retain employee identification and work authorization records, ensure that employees have provided proper documents to establish both their identity and employment authorization. Review the documents and ensure they fall within the acceptable categories as specified by the I-9 form instructions. Employers should also verify that the documentation is not expired. If you find any expired documentation, you must follow the appropriate procedures to update the employee’s work authorization status or request new documentation.
Step 3: Verify Timely Completion I-9 forms must be signed by the employee on their first day of employment and completed by the employer no later than three business days after the employee starts working. If you discover that any I-9 forms were not completed on time, make a note of these violations and take steps to rectify them.
Step 4: Look for Common Mistakes While reviewing your I-9 records, pay special attention to common errors such as:
- Incorrect dates or missing signatures.
- Mistakes in the employee’s date of birth or Social Security number.
- Incorrect or incomplete document lists, such as failing to properly list the document type.
- Failure to reverify employment authorization when required (e.g., when an employee’s work authorization has expired).
Step 5: Address Discrepancies and Take Corrective Action If you discover discrepancies, take corrective actions promptly. For instance, if you find incomplete forms, it is important to complete them immediately. If any forms are missing or you cannot find a specific I-9 form, contact the employee and have them complete a new I-9 form. In cases of errors that cannot be corrected, such as expired documents that were never updated, take immediate steps to verify the employee’s work status and obtain valid documentation.
Step 6: Retain and Secure Your I-9 Records Once the audit is complete, ensure all forms are securely stored and organized in compliance with I-9 record-keeping requirements. I-9 forms must be kept for at least three years after the employee’s hire date or one year after employment ends, whichever is later. Properly storing and securing these forms will protect you from potential claims of non-compliance.
Final Thoughts
An internal I-9 audit is an essential part of maintaining a legally compliant workforce. By identifying potential errors, addressing discrepancies, and ensuring all forms are completed correctly and on time, you minimize the risk of facing fines or legal challenges.
If you need guidance on how to conduct an internal audit or need help rectifying any mistakes found during the process, you can register for a consultation with us via phone (970-680-1223) or online.
*Shared for general information purposes and is not legal advice. Engagement with this post doesn’t create an attorney-client privilege.