Form I-9 Fines Increase Again - What Employers Should Know

An increase to Form I-9 related penalties was  recently posted to the Federal Register. As of February 13, 2024 fines related to I-9 paperwork (substantive administrative errors) now range from $281 to $2,789 per form. Form I-9 penalties can add up quickly and employers should bear in mind the importance of compliance with how the Form I-9 is completed and errors during the I-9 document verification process. This development is a result of the ongoing adjustments mandated by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015.

The increased fine amounts are as follows:

• Substantive Form I-9 violations – minimum: $281
• Substantive Form I-9 violations – maximum: $2,789
• Knowingly employing undocumented – 1st order: $698 to $5,579
• Knowingly employing undocumented – 2nd order: $5,579 to $13,946
• Knowingly employing undocumented – subsequent: $8,369 to $27,894
• Unfair documentary practices: $230 to $2,304
• Unfair immigration-related employment practice (discrimination) – 1st order: $575 to $4,610
• Unfair immigration-related employment practice (discrimination) – 2nd order: $4,610 to $11,524
• Unfair immigration-related employment practice (discrimination) – subsequent order: $6,913 to $23,048
• Document Fraud (USC 1324c(a)((1)-(4)) – 1st order: $575 to $4,610
• Document Fraud (USC 1324c(a)((1)-(4)) –subsequent order: $4,610 to $11,524
• Document Fraud (USC 1324c(a)((5)-(6)) – 1st order: $487 to $3,887
• Document Fraud (USC 1324c(a)((5)-(6)) –subsequent order: $3,887 to $9,718
• Prohibition of indemnity bonds: $2,789
• Employer’s failure to notify DHS of continuing to employ after final non-confirmation: $973 to $1,942

The Importance of I-9 Compliance During an I-9 Audit

In the event of an I-9 audit conducted by The Department of Homeland Security (DHS), employers may have as little as three business days to hand over their Forms I-9 and related documents. Ensuring full compliance with administrative errors is crucial, however employers should also bear in mind that in addition to DHS, the Department of Justice (DOJ) can investigate and penalize employers that have participated in discriminatory practices related to errors made during the employment authorization and identification document review process for Form I-9 purposes. The DOJ has reached hefty settlements with several companies regarding discrimination during the Form I-9 process. Learn more in our e-book: Preventing Discrimination During the I-9 Process or visit the DOJ website.

The DOJ also published guidelines for electronic I-9 solutions that can help to ensure you choose an I-9 software provider that complies with all up-to-date legal requirements. U.S. Immigration and Customs Service (ICE) assesses violations relating to the Form I-9. When determining the amount of the penalty, it considers:

• The size of the employer’s business
• The good faith of the employer
• The seriousness of the violation
• Whether or not the individual was an unauthorized alien
• A history of previous violations

Implications for Form I-9 Compliance

Understanding the nuances of these adjustments is crucial for businesses and employers navigating the intricate landscape of Form I-9 compliance. The recent increase in penalties underscores the government's commitment to ensuring stringent adherence to immigration-related employment verification processes.

In conclusion, the recent adjustments to Form I-9 penalties highlight the government's proactive approach to maintaining the efficacy of immigration-related compliance measures. As employers strive to uphold the standards set forth by these regulations, staying informed about the evolving landscape of penalties and compliance requirements becomes imperative. Regular checks of the Federal Register for the latest adjustments will prove beneficial in ensuring accurate adherence to Form I-9 guidelines and avoiding potential penalties. Learn how GryphonHR can help you to avoid I-9 related fines and maintain compliance with ever-changing regulations. Contact our team today!