HR Spring Cleaning: Time to Check Your I-9s

As the world readjusts to life post-pandemic, human resources teams are returning to the norm for hiring and onboarding employees. And one of the most important switches is a return to the traditional federal rules about handling the Form I-9.

While pandemic restrictions temporarily allowed for flexibility in gathering I-9 information, things are back to normal now. Employers that fail to comply with federal requirements could face big penalties—so it’s essential to take steps now to ensure full compliance.

Here’s how to tidy up this area of your employee records-keeping:

Remember the Purpose of the Form I-9

The Form I-9 is a mandatory means of ensuring that employers are complying with the Immigration Reform and Control Act (IRCA). The purpose of this process is to verify the eligibility of an individual to work in the United States. According to the IRCA, U.S. employers must verify the employment eligibility status of newly hired employees. When companies don’t comply with the IRCA, they face serious fines, legal entanglements, and public relations risks.

How to Stay Compliant with New Hire I-9s

These seven human resources “spring cleaning” tips are a great way to ensure your HR department stays in compliance with the IRCA this year.

1. Use the I-9 for all employees

To fulfill the federal requirements established under the IRCA, companies must complete and maintain a completed Form I-9 for any person hired to perform labors or services in the U.S. in exchange for wages or other means of compensation (such as food and lodging).

• Both employers and employees must complete their portion of the form CORRECTLY…and it’s not as easy as you think.  Did you know there is an entire published manual outlining how to complete the form?  
• Both citizens and noncitizens are required to complete the form.
• The form applies to everyone—even if you only have one employee, they need an I-9.

The only exceptions to the I-9 requirement are:

• People who were hired on or before the IRCA went into effect (Nov. 6, 1986) and are continuing in their employment
• Domestic workers employed in private homes on an irregular basis
• Independent contractors
• Those who are working for a contractor company (such as a temp agency)
• Those not physically working on U.S. soil

As with any HR rule, if you have questions, our team would love to answer them! 

2. View the physical, original documents required

Due to the pandemic’s work from home provisions, some temporary exceptions to I-9 rules were put into place. But as of 2022, these temporary rules have been revoked. 

For employers, this means that when a new hire completes the I-9, they must present their original, physical documents proving their identity and eligibility to work in the U.S. Because this is a legal requirement under the IRCA, employers cannot make exceptions. Copies of passports, camera photos of drivers’ licenses, and other copies are not acceptable.

In situations where a hire is made remotely, the employer must designate an authorized representative to examine the employee’s documentation. A notary public may be asked to complete this role. (At Who’s Your HR?, we can help with this!)

Also, note that certain types of employers, such as those that hold federal contracts, may need to take an additional step by using eVerify to complete I-9 compliance.

3. Complete both sections of the form within 1-3 days of hire date

To stay compliant with the IRCA, the HR team should ensure that employees complete Section 1 of the Form I-9 on their first day of employment. The form may be completed before the start date, as long as it occurs after the job offer is accepted. 

Once the employee has completed Section 1, the employer must review the employee’s current, unexpired, original documents and complete Section 2 within 1-3 business days of the hire date. 

4. Keep I-9s on file for the required length of time

While it’s tempting to clear out your HR files, don’t get rid of the I-9 forms! Employers must hold on to an employee’s original I-9 form for at least three years after the hire date, or one year after employment ends, whichever is later.

This length of time ensures that a federal inspection of employees’ I-9s can be made in a complete, accurate and timely fashion. These inspections, when they occur, cover both current and past employees whose hire date falls within that required time period.

When an inspection of I-9s is requested by federal officials, the request must be given to the employer with 72 hours’ notice. Once the notice period is over, the forms must be presented immediately.

5. Store I-9s separately from other personnel files

Storing 1-9s together, in their own files apart from other employee records, helps to make it simple for the employer to legally comply with an inspection request without facing fines. Whether the forms are stored at the worksite or offsite, be sure they can be easily accessed and pulled as soon as needed. 

6. Use the latest version of the Form I-9

While some federal forms rarely change, updates to the I-9 are common. Therefore, employers must be sure they have the most current version of the form for their new hires. The date that the form was updated is located in the lower left corner of the form. As of January 31, 2020, the form being used must have the date of October 21, 2019. Who’s Your HR? can audit your files to determine if correct forms were used!

The U.S. government makes access easy, and the form can easily be obtained online.

7. Beware the consequences of failing to comply with I-9 rules

The Immigration and Customs Enforcement (ICE) agency does not play games when it comes to enforcing I-9 compliance. Whether violations are technical, procedural, minor or serious, employers will face, at best, time-consuming corrections, and at worst, sizable fines and even criminal prosecution. 

Fines can range from a few hundred dollars to as much as $16,000 per violation, with fines increasing for repeat offenders. Even the failure to produce an I-9 in a timely fashion can result in fines up to over $1,000 per violation.

For employers who hold government contracts, ICE violations can lead to the company having existing government contracts canceled and being barred from future contracts—a dilemma that can cost quite a lot to the company’s bottom line profits. 

Audit Your Employee Files to Ensure Compliance

Because the penalties for I-9 mistakes can be so high, it’s wise to stay on top of all employee paperwork. Employee files should be reviewed periodically for accuracy, and all Form I-9s should be completed, confirmed, and properly stored for quick access whenever needed.

The best way to keep I-9s and other forms up-to-date is with a regular audit. Yes, these procedures can seem complicated and time-consuming, but they are necessary to ensure the business stays compliant with federal regulations.

Make Life Easier with Expert HR Consultants on Your Side 

Fortunately, you don’t have to do your I-9 audit alone. At Who’s Your HR?, our human resources professionals provide auditing help that takes the pressure off your team so they can focus on other important tasks. 

Our auditing checklist is personalized to fit your company’s specific needs, and we’ll make it simple to assess and address any issues with your onboarding processes—so you can concentrate on the work you do best.

Contact us at 539-215-8868 to schedule a consultation or to learn more about our auditing process.