ARTICLE | November 12, 2026

Form I-9 was created through the Immigration Reform and Control Act of 1986. It requires U.S. employers to verify both the identity and employment authorization of each person hired to work in the United States. Employees complete Section 1 and present acceptable documentation; employers review the documents and complete Section 2. The form is not filed with the government, but employers must retain it and make it available if requested during an inspection.

 After more than 20 years in HR and payroll, I can tell you that poor I-9 practices are not unusual. A common misconception is that I-9 compliance only matters for employers with a workforce perceived as more likely to include foreign-born or non-citizen employees – such as agriculture. That is simply not the case.

In March 2026, ICE made several common Form I-9 errors more serious by reclassifying them as substantive violations. Before the change, employers could often correct these technical errors within 10 business days after an audit notice (known as the “cure period”) to avoid penalties. Common errors are a missing date, missing check box, missing date of birth, etc. Now, many of those errors may result in an immediate penalty, even if the employee is authorized to work.

Enforcement actions show that Form I-9 problems are not limited to employers that knowingly hire unauthorized workers. Employers have faced significant penalties for failing to complete I-9s altogether, demanding extra documents from lawful permanent residents, and improperly re-verifying employees who were already authorized to work. Note that these cases were brought prior to March 2026. Had they been later, the fines could be significantly higher.

OCAHO Case 14A00008

799 violations @ $700 each = $559,330 (Missing forms & form errors)

9 violations @ $550 each = $4950 (Missing citizenship indications on employee portion)

205 violations @ $200 each = $41,000 (Retaining unauthorized workers)

https://www.justice.gov/sites/default/files/pages/attachments/2015/07/15/1255.pdf

OCAHO Case 2023A00054

22 Violations @ $1450 per violation = $31,900 penalty (Missing forms)

https://www.justice.gov/eoir/media/1404701/dl?inline

US DOJ Civil Rights Division vs. Whirlpool Corporation

Settlement agreement for unfair documentary practices (requiring non-citizens to produce more documents than required by the Form)

$125,000 civil penalty to the US Treasury & $100,000 in back pay for affected applicants and employees.

https://www.justice.gov/crt/media/1446386/dl?inline

The good news is that employers do not need to wait for an audit to improve their I-9 practices. A proactive review can identify issues, correct what can be corrected, and help prevent the same mistakes going forward.

A good place to start is:

• Ensure staff are trained on I-9 requirements including retention, and they’re aware of discriminatory practices to avoid, i.e. requesting additional documentation beyond what the Form requires.
• Conduct a self-audit of current and retained Forms I-9.
• Confirm that each employee has a complete Form I-9 and that forms are stored separately from personnel files.
• Review forms for missing information, late completion, incomplete document details, and improper use of remote verification.
• Correct errors carefully—do not backdate forms or alter information that should be completed by the employee.
• Make sure the team responsible for onboarding understands the form, the timing requirements, and the document requirements.
• Review electronic I-9 systems and remote-verification procedures to confirm they meet current DHS requirements.

Consider having legal counsel review significant issues, especially missing forms, widespread errors, or concerns involving discrimination.

How Larson Gross can help

Larson Gross does not provide legal advice or represent employers in an I-9 audit. However, we can help you build a more consistent and practical I-9 process before an issue arises.

We can assist with:

• Training the employees responsible for onboarding and completing Forms I-9
• Reviewing your current process and identifying common compliance gaps
• Helping implement clear, consistent procedures for new hires, reverification, and record retention
• Creating practical checklists and documentation practices for your team

A little upfront attention to the process can go a long way toward avoiding costly mistakes later!