U.S. employers must complete the Form I-9 for everyone they hire in the United States, including citizens and noncitizens. While the form might seem relatively simple, seemingly small errors committed by employers and employees alike can lead to hefty fines from the U.S. Immigrations and Customs Enforcement agency (ICE).
Recent Fine Increases, Civil Sanctions
On June 28, 2024, the Department of Homeland Security (DHS) announced an increase in fines for Form I-9 violations, in part to account for inflation and in part to stress the significance of I-9 compliance to U.S. employers.
I-9 paperwork violations: $281-$2,789 per violation (up from $272-$2,701),
Knowingly hiring unauthorized noncitizens (please note this only refers to civil sanctions and does not address criminal liability which may include IRCA and RICO criminal liability of millions of dollars and potential jail time): $698-$5,579 for the first offense, $5,579-$13,946 for the second offense, and $8,360-$27,894 for the third or more offense; and
E-Verify employers failing to inform DHS of continuing employment: $973-$1,942 per employee.
But what are some common I-9 paperwork violations employers can easily avoid?
Section 2: Employer’s Business or Organization Name
In Section 2, it is vital that the employer records the full legal name of the employer, as registered with the applicable state agency (generally the Secretary of State). While many employers refer to their business or organization as their doing business as (DBA) or trade name, make sure to cite the full legal name of the business or organization as registered on Section 2 of the Form I-9.
Section 2: Social Security Card Issuing Authority
In Section 2 of the Form I-9, many employers list the Issuing Authority of Social Security Cards as the “Social Security Administration.” While this is oftentimes correct, it is important that employers note that Social Security Cards issued prior to the Social Security Independence and Program Improvements Act of 1994 were often issued by the Department of Health, Education and Welfare (HEW) or the Department of Health & Human Services (HHS).
Check the seal on the front of the Social Security Card or the bolded organization on the back of the Social Security Card to verify listing of the correct Issuing Authority in Section 2.
While these issues may appear trivial, the fine amount heavily depends on whether it is a first offense or subsequent offense. Ensuring these common mistakes do not accrue on your business or organization’s Form I-9s can save you money in the long run.
To help your I-9 Administrators avoid these mistakes, employers should provide annual training. One available training option is I-9 Administrator Training provided by Corporate Immigration Compliance Institute.
Ellie Wiltanger
Law Clerk, Mdivani Corporate Immigration Law
