On January 2, 2025, the Department of Homeland Security (DHS) published a final rule updating civil penalties. This final rule specifically addressed the penalties accounting for inflation associated with the employment eligibility verification forms (Form I-9). These updated penalties will apply for violations occurring on or after November 2, 2015, and assessed on or after January 2, 2025.

These penalties fall under the Immigration and Nationality Act (INA). According to Section 274A(b) in the INA, employers must verify their employees’ identity and authorization to work in the United States. Furthermore, 8 CFR Section 274a.2 reminds employers to fill out Form I-9s when verifying employees. They must complete and maintain these forms as proof of the verification.

Employers use Form I-9 to record information supplied by the employee to prove their work authorization. Once completed, employers must retain the documents for several years. In most cases, they must hold this information for three years from the employee’s start date. Otherwise, they must keep it for a year from the employee’s date of separation.

U.S. Immigration and Customs Enforcement (ICE) will send a Notice of Inspection to employers they choose to inspect. This notice allows the employers a minimum of three days to provide any requested Form I-9s and other required information. ICE will examine the forms for compliance by identifying any technical or substantive violations. In the event of technical failures, ICE will provide a minimum of 10 days for employers to correct these issues and choose whether to assess any civil penalties.

“Civil penalties for I-9 paperwork violations,” as described by 8 CFR 274a.10(b)(2), have seen an increase in penalty costs to account for inflation. Previously, penalties cost $281-$2,789. However, the new Federal Register Notice has increased civil penalties to $288-$2,861.

The Federal Civil Penalties Inflation Adjustment Act increases civil penalties annually. The Executive Office of the President (EOP) Office of Management and Budget (OMB) guides this process. This guidance ensures that civil penalty amounts remain an effective deterrent.

These increased civil penalties should prove effective incentives for employers to ensure they correctly follow the employment eligibility verification process. As such, employers should review their processes to ensure their Form I-9 management complies with federal regulations. One way is by using an electronic I-9 management system. This system provides step-by-step guidance for completing Form I-9s, digital storage for the form and additional documentation, and can alert users of when to take further action.

When it comes to your work, automation makes eligibility verification quick and seamless. Get a head start today with I-9 Compliance.

Source