Correctly completing and storing Form I-9s for new hires has been required since 1986, when the Immigration Reform and Control Act (IRCA) mandated that employers complete Form I-9 for every new hire. While employers are aware of the importance of compliance, what they may not know is that as of August 1, 2016, U.S. Immigration and Customs Enforcement (ICE) has made changes significantly increasing fines for mistakes on those forms. 

The source of the changes is the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Sec. 701 of Public Law 114-74), signed into law by the President on November 2, 2015. This law provides for increases in fines to adjust for inflation.

Two areas of concern for employers

While this law affects a broad range of situations, employers are most concerned with these:

• Employing people who are unauthorized to work in the United States
• Incorrect completion of Form I-9

Fines for knowingly hiring or employing unauthorized aliens have increased from a minimum of $375 and maximum of $3,200 for the first offense to a minimum of $539 and maximum of $4, 313. Similar increases are in place for second and third offenses with minimums rising from $3200 and $4,300 to $4,313 and $6,469 respectively, and maximums reaching $10,781 and $21,563. (See the Federal Register for more information.)

Fine increases for Form I-9 errors

Similarly, large increases are in place for paperwork violations on Form I-9 with fines previously ranging from $110 – $1,100 now assessed between $216 and $2,156 per violation. While the short form seems simple enough, mistakes in its completion are not uncommon and can be costly.

Errors often made include accepting unacceptable documents, not completing forms on time, omitting the Alien Registration Number when the employee is a permanent resident, and failure to reverify that a foreign national is authorized to work beyond the original expiration date. Failure to complete the Employer Certification section with employer address, not dating the employer completed Section 2, etc. are also common sources of errors. (Read here to learn about others.)

Staying compliant

The U.S. Citizenship and Immigration Services maintains a site, “I-9 Central” that has useful information about the form and how to follow current regulations. Using a paperless Form I-9 may simplify the process for you and your employees, making updating, reverification, and filing easier.  However you approach the requirement of completing and storing your Form I-9s, the substantial increase in fines for errors encourages careful attention to the accuracy of your procedures.