What Employers Need to Know About I-9 Compliance in 2025

As workplace immigration enforcement increases nationwide, organizations can expect greater scrutiny of their I-9 forms. In the recent SHRM webinar “I-9 Compliance: What You Need to Know in 2025,” Paola Cecchi-Dimeglio, faculty chair of the Executive Leadership Research Initiative for Women and Minority Attorneys at Harvard Law School, discussed how to correctly fill out an I-9 form, the common mistakes employers make, the importance of internal auditing, and the various risks associated with noncompliance. 

Toolkit: Understand How to Comply with I-9 and E-Verify Requirements

Basics of Form I-9

Cecchi-Dimeglio explained that employers use Form I-9 to confirm a worker’s “ID and [their] right to work in the United States.” There are some exceptions to this requirement, including individuals hired on or before Nov. 6, 1986; casual domestic workers; independent contractors; and workers not physically present in the U.S. 

Everyone else, however, must have a Form I-9 completed on their behalf. “It is extremely important for the employer to be compliant, because otherwise you may get penalties and fines,” including the possibility of imprisonment, Cecchi-Dimeglio cautioned. “At the end of the day, it’s you who are exposing yourself.” However, the process isn’t something employers should fear, as it ensures they hire legally eligible workers.

Form I-9 has four sections, with each serving a distinct purpose. Section 1 focuses on employee information and attestation and must be completed by the employee no later than their first day of work, along with proof of identity and work authorization. Section 2 requires the employer to verify these documents within three days of employment. Supplement A is used when an interpreter or preparer assists the employee, while Supplement B is necessary for name changes, rehires, or when reverification is required. By understanding and following these guidelines, employers can confidently meet Form I-9 requirements.

Recent Updates to Form I-9

During the pandemic, there was increased flexibility regarding Form I-9 document review. “There was a leniency” that allowed virtual verification in place of in-person review, Cecchi-Dimeglio explained. However, as of Aug. 1, 2023, pre-pandemic policies have been reinstated, requiring employers to conduct in-person verification of employee documents unless they are using the E-Verify system. This shift marks a return to stricter compliance with traditional verification practices.

Retention and Storage 

Employers are required to retain Form I-9s for three years after the date of hire or one year after employment ends, whichever comes later, and active I-9s must always be maintained. Using HR software is a highly recommended best practice for securely storing these forms. “I have a very strong preference for software [storage],” Cecchi-Dimeglio said, adding that “it’s efficient, [and] you can retrieve everything very easily.” She emphasized that “the use of HR software is the safest way” to ensure compliance and safeguard employee documentation.

E-Verify Benefits

E-Verify offers a fast and efficient way to verify employee eligibility during onboarding, with results displayed in as little as five seconds. Its features, such as photo matching, help prevent fraud and streamline processes, reducing the need for time-consuming manual checks. “Compliance becomes easy” with E-Verify, Cecchi-Dimeglio explained. By reducing the likelihood of human error, “you really minimize your risk.”

Consequences of Noncompliance

Noncompliance with Form I-9 requirements can lead to significant financial and legal penalties. Paperwork violations result in fines ranging from $288 to $2,861 per instance, while hiring unauthorized workers incurs penalties starting at $716 per worker for the first offense, escalating to $28,619 for repeat violations. Failing to report employment after a Final Nonconfirmation in E-Verify can result in fines between $973 and $1,942. Repeated offenses may even lead to up to five years of imprisonment for the employer. 

Beyond financial and legal risks, “when an employer is often in the media related to a violation of the Form I-9 or so on, there are consequences for their reputation, but also for attracting talent,” Cecchi-Dimeglio said.  

Best Practices for Compliance 

Employers can take several proactive steps to ensure compliance with Form I-9 requirements. First and foremost, it’s critical to verify that all employees have valid work authorization and to reverify I-9 forms using Supplement B when an employee’s authorization is close to expiring. Investing in effective HR software can also help employers stay on top of compliance by providing automatic alerts at least 90 days before an employee’s I-9 requires reverification. 

Conducting regular internal audits is another essential practice for staying compliant. Cecchi-Dimeglio advised employers to “make sure that your roster of employees is accurate and current, [make] sure that all employees have filled out an I-9 form, verify that the I-9 form for former employees [has been kept] for at least three years,” and stay updated on any changes to the Form I-9 itself. 

Checklist: Form I-9 Violations to Spot and Correct

Such audits establish a baseline for compliance. Once completed, employers can then assess their practices and identify ways to make improvements. With an audit, “you’ve [set] a standard” Cecchi-Dimeglio said, which highlights one’s current standing and raises the follow-up question, “How do we make sure we are improving?”

If the results of an audit reveal gaps in compliance, it’s important for employers to act quickly and implement a defined timeline for addressing the deficiencies. Providing targeted training to HR during this period is a practical step toward improvement. “You should not underestimate as an employer how powerful it is to educate your employee related to this form,” Cecchi-Dimeglio said.