Form I-9 is the Employment Eligibility Verification form required by U.S. Citizenship and Immigration Services (USCIS) that employers must complete for every employee to verify their identity and authorization to work in the United States. Beyond basic compliance, this form represents a critical risk management tool that can expose companies to significant penalties if handled incorrectly, particularly when hiring remote workers or managing distributed teams.
Legal Requirements and Timeline
Every U.S. employer must complete Form I-9 for each employee, regardless of citizenship status. The process involves three key steps with specific timing requirements:
| Step | Responsibility | Timeline |
| Section 1 | Employee completes | By first day of work |
| Section 2 | Employer reviews documents | Within 3 business days of start date |
| Section 3 | Employer updates (if needed) | When employment authorization expires |
The three-day rule is absolute. If an employee starts on Monday, you must complete Section 2 by Thursday, with no exceptions for weekends or holidays affecting the count.
Document Verification Strategy
Form I-9 accepts documents from three lists, and understanding the strategic implications of each can streamline your verification process:
List A Documents (prove both identity and work authorization):
- U.S. passport
- Permanent resident card
- Employment authorization document with photo
List B + C Combination (identity plus work authorization):
- Driver’s license + Social Security card
- State ID + U.S. birth certificate
Strategic consideration: List A documents simplify verification but aren’t always available. Many employers prefer the B+C combination because these documents are more commonly possessed by workers.
Remote Work Complications
The rise of remote work has created significant Form I-9 challenges. Federal law requires employers to physically examine original documents, which creates problems for fully remote employees. Current acceptable solutions include:
- Authorized representatives: Third parties can examine documents on your behalf
- Temporary remote procedures: Limited COVID-era flexibilities (check current status)
- Notarization services: Some employers use notaries as authorized representatives
Critical insight: Many employers don’t realize that having an employee mail photocopies is insufficient and creates compliance violations. The physical examination requirement remains non-negotiable under current law.
Common Compliance Mistakes
Timing errors: Starting the I-9 process during interviews or before the job offer is accepted violates anti-discrimination laws. Wait until after the hire decision.
Document preferences: You cannot specify which acceptable documents an employee must provide. Saying “I need to see your passport” when they offer a driver’s license and Social Security card creates legal liability.
Storage and retention: I-9 forms must be stored separately from personnel files and retained for three years after hire or one year after termination, whichever is longer.
Penalties and Enforcement
Immigration and Customs Enforcement (ICE) conducts I-9 audits that can result in substantial penalties:
- Paperwork violations: $252 to $2,507 per form
- Knowingly hiring unauthorized workers: $626 to $6,253 per employee
- Pattern of violations: Criminal charges possible
Strategic reality: Penalties have increased significantly in recent years, and enforcement has become more aggressive. Companies can face six-figure penalty assessments for systematic violations.
Best Practices for Employers
Designate specific personnel: Train designated HR staff on I-9 requirements rather than having managers handle verification inconsistently.
Create verification checklists: Standardize your process to ensure consistent compliance across all hires.
Conduct internal audits: Regular self-audits can identify and correct violations before government enforcement.
Document training: Keep records of I-9 training provided to staff, as this can mitigate penalties during audits.
Frequently Asked Questions (FAQs)
You may photocopy documents, but you’re not required to. If you copy documents for some employees, you must copy them for all employees to avoid discrimination claims.
You must complete Section 3 when you receive notice of expiration. The employee must provide new documentation showing continued work authorization.
E-Verify supplements but doesn’t replace Form I-9. You must complete both if you’re enrolled in E-Verify.
The three-day rule still applies. If someone works only one day, you still have three business days from their start date to complete Section 2.
