The Reality of I-9 Compliance for Small Business Owners

Let’s talk about a topic that makes even seasoned HR professionals nervous – I-9 compliance and dealing with Immigration and Customs Enforcement (ICE). As entrepreneurs managing growing teams, understanding your responsibilities around work authorization isn’t just good practice – it’s essential protection for your business.

With increased enforcement actions across various industries, this topic is coming up in client conversations more frequently than ever. The question isn’t if you’ll face scrutiny, but how prepared you’ll be when it happens.

How I-9 Audits Get Triggered

Before your business ever faces an ICE enforcement action, you’ll likely encounter an I-9 audit. These audits can be initiated through several channels:

• Another government agency might spot concerning patterns in your records and notify immigration officials
• Your business might be randomly selected for audit (yes, this absolutely happens)
• Your industry or location might be targeted for increased enforcement
• A complaint from an employee, former employee, or even a competitor could trigger an investigation

What’s particularly challenging is that ICE won’t always disclose why your business was selected for review.

Common I-9 Errors That Escalate ICE Scrutiny

Several missteps can quickly transform a routine audit into a serious compliance issue:

Missing or Incorrect Information

Simple errors like incomplete employee information on I-9 forms – names, dates of birth, or missing work authorization status documentation – occur surprisingly often in busy entrepreneurial environments.

Expired Documentation

Using expired work authorization documents represents a major red flag for immigration officials. Each document has specific validity periods that must be carefully tracked.

Failure to Reverify

For employees on temporary visas or with time-limited work authorization, you must reverify their status before the expiration date. This seemingly small administrative task can lead to significant penalties when overlooked.

Improper I-9 Storage

Remember the retention rule: keep I-9s for either three years from the date of hire or one year after termination, whichever is later. Insufficient record-keeping often compounds other compliance issues.

Proactive Steps: Conducting Your Own I-9 Audit

The most effective defense is a good offense. Consider conducting your own internal I-9 audit before an official one occurs:

1. Appoint a dedicated person to oversee compliance – whether that’s you, another team member, or an outsourced HR professional
2. Reference the Department of Homeland Security’s M-274 Handbook for Employers as your guide https://www.uscis.gov/i-9-central/form-i-9-resources/handbook-for-employers-m-274
3. When correcting errors on existing I-9s, follow proper procedures:
   • Draw a single line through incorrect information
   • Initial and date the correction
   • Never use white-out or completely mark out original information (this appears suspicious)
4. Establish a consistent process for remote workers that maintains compliance while accommodating distributed teams