How to Prepare for I-9 Audits Under New Administration

Nico RobertsMarch 21, 2025

U.S. Immigration and Customs Enforcement (ICE) has increased workplace enforcement, leading to a sharp rise in I-9 audits under the new administration. As a result, ICE has reinstated workplace raids and I-9 audits, specifically targeting industries that employ many immigrant workers.

What Is an I-9 Audit?

An I-9 audit is an ICE review to ensure an employer has correctly completed and kept I-9 forms for all employees. In other words, employers must verify the identity and employment eligibility of every worker they hire in the United States. Otherwise, noncompliance can result in steep fines and legal consequences.

High-Risk Industries for I-9 Audits and Compliance Violations

Certain industries are morevulnerable to I-9 audits than others. In particular, the following sectors have been targeted:

• Construction
• Agriculture
• Manufacturing
• Lodging & Food Service

Given this heightened enforcement, employers must ensure perfect compliance with Form I-9 rules to avoid substantial penalties.

Rising I-9 Penalties: What Employers Should Expect

Recently, on June 28, 2024, the Department of Homeland Security (DHS) announced increased penalties for employers who fail to follow Form I-9 compliance requirements. Specifically, the new fines include:

• $2,789 per I-9 with substantive violations (such as missing forms or errors in documentation).
• Up to $27,894 per violation for knowingly hiring or continuing to employ unauthorized workers.

Ultimately, these higher penalties represent the government’s push for stricter immigration enforcement and serve as a clear warning for businesses to stay compliant.

The Hidden Risk: Noncompliant Electronic I-9 Software Solutions

As companies work to modernize their hiring and onboarding processes, many have turned to electronic I-9 processes to streamline compliance. However, many of these solutions don’t meet federal rules, which can put companies at risk during an I-9 audit.

Some of the most common compliance failures in electronic I-9 software include:

• Improper digital storage that does not meet ICE’s audit trail and security requirements.
• Lack of proper signature verification, making I-9 forms legally invalid.
• Failure to properly timestamp edits made after completing an I-9 form.
• Inability to produce compliant reports during an audit, leading to fines.

As a result, employers who assume their I-9 processes are compliant may face unexpected violations during an ICE audit. Without the right safeguards, even a well-intentioned digital solution can put businesses at risk of steep penalties.

How to Ensure Compliance with I-9 Employment Eligibility Verification Requirements

To maintain compliance, properly completing new employee paperwork, including I-9 Forms, is essential. Employers must make sure their onboarding process follows ICE and DHS rules, especially when using electronic I-9 processes.

To minimize risk, businesses should:

• Verify that their provider meets ICE and DHS electronic storage requirements for I-9 records.
• Conduct periodic internal audits of electronic I-9 records to ensure proper completion.
• Request compliance documentation from their I-9 software provider confirming adherence to government standards.
• Have a backup plan for ICE audits, with a legal expert to check new employee paperwork and I-9 records for issues.

Real-World Examples of I-9 Enforcement

In recent months, workplace ICE raids and I-9 audits have highlighted the increased risks for businesses.

• For instance, in March 2025, ICE raided a Houston business, detaining 20 employees over paperwork issues. Officials took administrative action, demonstrating how even small mistakes can lead to serious consequences.
• Similarly, in late 2024,Tatte Bakery and Cafe in Boston had to lay off numerous employees after implementing E-Verify. E-Verify is a government system that verifies workers’ employment eligibility.

These examples highlight the risks faced by unverified workers and the serious challenges industries face when relying on them.

I-9 Audit Preparation: 4 Best Practices for Employers to Stay Compliant

With ICE audits becoming more frequent, employers must take proactive measures to avoid costly penalties. Here are four best practices to ensure Form I-9 compliance:

1. Conduct Regular Internal I-9 Audits

Perform self-audits to identify and correct any I-9 errors before an official I-9 audit occurs. This not only mitigates risks but also demonstrates good faith compliance if an audit happens.

2. Train HR and Hiring Teams on I-9 Compliance

Ensure your HR staff and hiring managers are well-trained on:

• Properly completing I-9 Forms for all new employees and maintaining I-9 documentation for both former and existing employees.
• Recognizing acceptable employment authorization documents.
• Keeping I-9 forms for former employees for three years after hiring or one year after they leave, whichever is later.

3. Consider Enrolling in E-Verify

While not required for all businesses, E-Verify can provide an additional layer of compliance by digitally verifying an employee’s work eligibility.

4. Develop an ICE Audit Response Plan

Prepare a clear strategy for responding to an ICE audit or workplace raid. This should include:

• Assigning a legal representative to handle communication with ICE.
• Understanding your rights when presented with a Notice of Inspection.
• Keeping I-9 records well-organized and easily accessible.

Final Thoughts: The Cost of Noncompliance

As I-9 audits and workplace raids increase, employers can no longer afford to overlook compliance. In fact, incomplete or missing I-9 Forms can lead to fines, harm your reputation, and cause legal trouble.

Moreover, with many businesses unknowingly using noncompliant electronic I-9 systems, the risk is greater than ever. To protect your company, employers should review their I-9 processes, audit their systems, and ensure they meet all federal requirements before ICE comes knocking.