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I-9 Verification Mistakes That Can Lead to Fines

PSI Team | Uncategorized

Completing Form I-9 accurately is essential for compliance with U.S. employment eligibility laws. However, even small mistakes can lead to significant fines, penalties, and legal ramifications for your company.

Whether you’re an HR professional or a small business owner, understanding these I-9 verification mistakes that can lead to fines and how to avoid them can save you time, stress, and money.

What Is Form I-9 and Why Does It Matter?

Form I-9 is used to verify a new hire’s identity and employment eligibility in the U.S. Employers are required by law to complete it for every employee, regardless of citizenship or immigration status.

An incomplete or incorrect I-9 can result in hefty fines ranging from hundreds to thousands of dollars per form. Errors can put your business at financial and legal risk, making proper I-9 compliance a top priority.

Missing Required Information

One of the most common errors is leaving sections of the I-9 blank. Forms often lack complete details for the employee’s information, employer review, or signatures. Any missing information—no matter how minor—can render the document noncompliant.

How To Avoid This

Double-check every field of the form before submission. Additionally, use an internal checklist or a digital I-9 system that flags incomplete forms.

Filing After the Deadline

You must complete Section One of Form I-9 on the employee’s first day of work and Section Two within three business days. Failure to meet these deadlines is a compliance violation that can lead to scrutiny during audits.

How To Avoid This

Treat I-9 completion as part of your onboarding process. Set automated reminders to ensure deadlines are always met.

Accepting Invalid Documents

Employers sometimes inadvertently accept expired or noncompliant documents to verify identity or work eligibility. Doing so not only violates the law but also undermines the purpose of the I-9.

How To Avoid This

Carefully review the USCIS’s list of acceptable documents for identity and employment authorization. Always ensure that submitted documents are valid and up-to-date, and consider using reputable I-9 verification services like PSI Background Check.

Improper Storage of I-9 Forms  

Failing to retain I-9 forms properly is another costly mistake. By law, you’re required to keep completed forms for three years after the date of hire or one year after the employee’s termination, whichever is later.

How To Avoid This

Create and maintain organized, secure records using digital systems to store and retrieve forms as needed.

Errors During Reverification

For employees with an expired work authorization, you must complete a verification before their documents become invalid. Ignoring this can lead to noncompliance and fines.

How To Avoid This

Track expiration dates using a calendar or HR software. Notify employees well ahead of deadlines to collect updated forms or documents.

Stay Ahead of I-9 Compliance

Avoiding these I-9 verification mistakes is key to protecting your business from costly fines. With policies in place, a focus on detail, and reliable systems, you’re not just staying compliant—you’re building a stronger foundation for your company. Keep your hiring process secure and hassle-free by staying on the right side of the law.