Employers Get Ready: I-9 Fine Increases Are Here

admin • July 26, 2024

The United States Department of Homeland Security (DHS) has recently announced significant changes to the fines imposed on employers who fail to comply with the complex rules governing Form I-9 (Employment Eligibility Verification). Additionally, employers may face an increased risk of government I-9 inspections in the coming months.

Increased Penalties for I-9 Violations

As of June 28, 2024, the new fine schedule for I-9 violations is as follows:

  1. I-9 Paperwork Violations:

Range: $281 to $2,789 per Form I-9

2. Knowingly Employing Unauthorized Alien:

First Offense: $698 to $5,579 per violation

Second Offense: $5,579 to $13,946 per violation

Third or More Offense: $8,369 to $27,894 per violation

3. E-Verify Employers  — Failure to Inform DHS of Continuing Employment Following Final Nonconfirmation:

Range: $973 to $1,942 per relevant individual employee

Document Abuse and Unfair Immigration-Related Employment Practices

Document abuse occurs when an employer requests specific or additional documents after an employee has already presented qualifying I-9 documents. The I-9 rules require employers to allow employees to choose from the “I-9 List of Acceptable Documents.” The employer must then review the documents presented to verify compliance.

Unfair immigration-related employment practices may occur when employers treat job applicants or new hires differently based on their immigration status during I-9 procedures. The Department of Justice (DOJ) has also increased penalties for these practices:

  1. Document Abuse:

Range: $230 to $2,304 per violation

2. Unfair Immigration-Related Employment Practices:

First Offense: $575 to $4,610 per individual discriminated against

Second Offense: $4,610 to $11,524 per individual discriminated against

Third or More Offense: $6,913 to $23,048 per individual discriminated against

Steps to Improve I-9 Compliance

To mitigate the risk of I-9 penalties, employers should consider the following steps:

  1. Review I-9 Procedures: Regularly assess and update your I-9 processes.

2. Employee Training: Train staff responsible for I-9 compliance.

3. Internal Audits: Conduct periodic internal audits to identify and address any issues.

Remember, compliance with I-9 requirements is crucial to avoid costly fines and legal consequences. Stay informed and ensure your organization follows best practices.

Common Mistakes with Form I-9

Employers often make the following common mistakes with Form I-9:

  1. Incomplete Forms: Failing to fill out all required fields on the Form I-9.
  2. Incorrect Dates: Providing incorrect dates (e.g., hire date, rehire date, or employment authorization expiration date).
  3. Accepting Expired Documents: Accepting expired documents as proof of employment eligibility.
  4. Missing Signatures: Not obtaining the required signatures from both the employee and the employer representative.
  5. Late Completion: Failing to complete the Form I-9 within the required time frame (usually within three business days of hire).
  6. Using Outdated Forms: Using outdated versions of the Form I-9 (employers should always use the most current version available).
  7. Not Retaining Forms: Failing to retain completed Forms I-9 for the required retention period (three years after hire or one year after termination, whichever is later).

Proper training and regular audits can help employers avoid these mistakes and maintain compliance.

Employers can correct mistakes on completed Forms I-9 by following these steps:

  1. Line Through the Error: If an error is made on the form, the employer should draw a single line through the incorrect information. The original information should still be readable.

2. Enter Correct Information: Next to the corrected field, the employer should enter the accurate information. It’s essential to use a different color ink or pen to distinguish the correction from the original entry.

3. Date and Initial: The employer or the authorized representative should date and initial the correction. This indicates when the correction was made.

4. Attach a Note: If the mistake is significant or if there are multiple corrections, it’s advisable to attach a note explaining the changes. This provides clarity during any future audits.

Employers should never backdate the form or use correction fluid (white-out) to alter information. Transparency and accuracy are key when making corrections to Form I-9.

How PEOs Can Help Businesses

Professional Employer Organization (PEO) can be a valuable partner for businesses. By outsourcing HR functions to a PEO, employers gain access to expertise, streamlined processes, and cost-effective solutions.

PEO I-9 Form Handling

  1. Enrollment and Verification:

Both the client company and the PEO share responsibility for ensuring compliance with Form I-9 and E-Verify rules.

They can choose an enrollment method that best suits their needs:

The client business can directly enroll in E-Verify as an Employer and designate itself as a Federal contractor (if applicable).

The PEO registers in E-Verify as an Employer Agent, allowing them to perform E-Verify queries on behalf of client companies.

2. Client Business Responsibilities:

If contracts require E-Verify enrollment, the client business must ensure that either they or the PEO complete the necessary verifications.

The client business remains accountable for verifying its employees’ eligibility and complying with I-9 rules.

3. PEO Accountability:

The PEO’s role includes advising client companies on compliance matters.

However, this does not absolve the client of their accountability regarding Form I-9.

Best practice involves ongoing awareness and staying current on compliance requirements.

Remember, open communication between the client business and the PEO is essential to maintain compliance and avoid penalties.

PEOs handle payroll, benefits administration, compliance, and risk management, allowing businesses to focus on their core operations. Whether it’s managing employee benefits, navigating complex regulations, or enhancing workforce efficiency, a PEO can provide essential support. Consider partnering with a PEO to optimize your business operations and foster growth.

With over 600 PEO companies, how do you choose? As your dedicated PEO broker, we take a holistic approach to finding the right PEO partner for your business, helping you maximize your savings potential and avoid any undue risks.

Ready to optimize your worker’s comp, and employee benefit plans and streamline your HR processes? Contact Suzanna@PEOfortheCEO.com today for personalized assistance or schedule a chat with us.

Visit PEOfortheCEO.com to learn more.