Navigating I-9 Compliance in 2025: What Employers Need to Know

In today’s environment of increased immigration enforcement and regulatory scrutiny, I-9 compliance has become more critical than ever for employers. As federal agencies ramp up audits and onsite inspections, businesses face growing pressure to ensure that every employee on their payroll is properly documented. 

The Form I-9 may seem like a routine onboarding form, but failure to complete, store, or produce it correctly can result in hefty fines, reputational damage, or even criminal liability. In a session at SHRM25, John Fay, director of product strategy at Equifax Workforce Solutions in Phoenix, discussed how employers must treat I-9 compliance not as an afterthought, but as a cornerstone of a proactive risk management strategy. 

Toolkit: Stay Compliant with I-9 and E-Verify Requirements

Worksite Enforcement 

Form I-9 compliance stems from the Immigration Reform and Control Act of 1986. “The idea behind it was that employers and HR representatives essentially are responsible for ensuring that [they] hire a legal workforce,” Fay said. This law “established the notion of employer sanctions” even in cases where “you’re not actually employing or hiring any unauthorized workers.”

Employers should be aware of two key enforcement actions that the government may pursue: a form I-9 inspection or a worksite enforcement action. The more common of the two is the I-9 inspection, which begins when an employer receives a Notice of Inspection (NOI) requesting the production of I-9s, related documentation, and other business records. Because this is the more common circumstance that employers may encounter, Fay advised planning ahead by organizing records early. Typically, U.S. Immigration and Customs Enforcement (ICE) gives employers three business days to provide the requested documentation, which may include payroll records, business licenses, articles of incorporation, and more. 

The second, more serious enforcement action involves an unannounced visit from ICE special agents, who may enter a workplace to detain unauthorized workers. These events are less common, largely due to the expense of conducting such an operation, but they can have significant legal and reputational consequences. 

There has been an “incredibly dramatic increase in terms of what we were seeing before in audit activity just in the first six months of this year,” Fay noted. Certain industries appear to be disproportionately affected, he said. These include restaurants, health care, manufacturing, and retail.  

To prepare, Fay recommended employers come up with a worksite enforcement action plan that outlines how to respond to an NOI or unannounced audit. Such a plan should identify a response team, define search protocols, and include procedures for handling I-9 notices and investigations. 

For employers conducting internal audits, Fay emphasized the importance of triaging compliance issues. “Prioritize which areas you’re going to fix first,” especially serious violations such as missing I-9s or signatures, he said.

Immigration Policy Updates

Recent changes to immigration policy have significant implications for employers managing I-9 compliance. The U.S. Department of Homeland Security (DHS) has terminated several key humanitarian programs, including the Processes for Cubans, Haitians, Nicaraguans, and Venezuelans (CHNV). Venezuela’s Temporary Protected Status (TPS) designation was also terminated in April 2025, and TPS for Haiti is slated to end Sept. 2. Additional TPS designations for other countries are also on track for termination, which could impact employees currently authorized to work under those protections.  

In light of these changes, employers are advised to review their I-9 records and assess whether any employees may be affected. As Fay explained, it’s “about understanding your population.” Employers should go through their I-9s to determine who may need reverification. One helpful step is to examine the category code on work authorization documents, which may identify individuals whose status is tied to TPS or similar programs. 

When reverifying documentation, employers should follow USCIS guidelines closely, Fay said. Review only original, acceptable, and unexpired documents or valid receipts. The standard is whether the document “reasonably appears to be genuine” and relates to the individual presenting it, Fay said. USCIS also encourages fraud awareness training for those reviewing documents virtually.  

Importantly, employers must remain mindful of anti-discrimination provisions in the I-9 process. Fay cautioned that “you don’t want to be overcorrecting.” Employers may not request different or additional documents, reject documents that appear reasonably genuine, or single out individuals based on citizenship status or national origin. The key is to stay compliant while applying verification procedures fairly and consistently across your workforce.

Examining Documentation in the Virtual Age 

As of Aug. 1, 2023, E-Verify employers in good standing have the option to conduct virtual document inspection for Form I-9 completion by using an alternative procedure in place of physical review. To qualify, employers must use E-Verify at the specific hiring site and conduct a remote review process that includes live video interaction. Employers must also retain copies of the documents reviewed and ensure the “alternative procedure” box is checked on the I-9 form. 

“During the video review, the individual is supposed to hold up their real document,” Fay explained. “Some of those interactions, you will be able to spot potential AI fraud.” 

As virtual reviews become more common, Fay added that “we anticipate there’s going to be a lot of questions and a lot of scrutiny over I-9s that may have been completed virtually.” Employers are advised to be meticulous in following the new procedures to avoid compliance issues down the line.