I-9 Audits - Why the Stakes are Higher in 2025

October 2, 2025

On March 6, 2025, our firm posted a blog about the basics of I-9 completion ensuring that employers are complying with federal immigration laws which requires verification of the identity and work authorization of employees.

In this article our focus is to highlight the importance of an I-9 Audit, especially in light of recent deportations. For businesses, especially those in high-turnover industries like hospitality, agriculture, and construction, the stakes have never been higher.

It isn’t just a box to be checked – it’s a strategic necessity.

What is an I-9 Audit?

It is an internal review of the completion of I-9 forms, which verifies the identity and employment authorization of every employee hired by U.S. employers regardless of size of the organization. Employers are legally required to complete and retain this form for each employee. Audits help ensure that these forms are properly completed, retained, stored, and updated in accordance with federal law.

What changed in 2025?

Several developments have converged to make I-9 audit completion a top priority for this year:

New Form I-9 Released: In January 2025, USCIS introduced a revised version of Form I-9 with updated instructions and document descriptions. While older versions remain valid until 2026, switching to the new form now ensures full compliance.
Aggressive ICE Enforcement: Immigration and Customs Enforcement (ICE) has ramped up workplace inspections and audits by hiring 10,000 new agents to accelerate deportations. Employers now face unannounced raids and three-day deadlines to produce I-9 documentation upon receiving a Notice of Inspection.
Steep Penalties: Fines for paperwork violations range from $288 to $2,789 per infraction. Fines can range from $698 to $27,000 per worker for repeat offenses or knowingly hiring unauthorized workers.
- Below are client examples where we assisted with an I9 Audit
  - A recent audit conducted by our team for an employer with 1,000 employees found that 95% of the I-9’s were completed incorrectly. This would have resulted in a minimum fine of $275,000.
  - A recent audit conducted by our team for an employer with 600 employees found that 50% of the I-9’s were completed incorrectly. This would have resulted in a minimum fine of $87,000.
  - A recent audit conducted by our team for an employer with 200 employees found that 35% of the I-9’s were completed incorrectly. This would have resulted in a minimum fine of $21,000.
  - A recent audit conducted by our team for an employer with 195 employees found that 43% of the I-9’s were completed incorrectly. This would have resulted in minimum fine of $24,192.
- AI-Powered Scrutiny: ICE’s Homeland Security Investigations (HSI) unit is using advanced analytics and AI for both electronic and paper I-9 systems to detect discrepancies, making even minor clerical errors a potential liability.

Benefits of Completing I-9 Audits

Conducting regular I9 audits offer multiple advantages:

Avoid Legal and Financial Risks: Catching and correcting errors before an ICE inspection can save thousands of dollars in fines.
Demonstrate Good Faith Compliance: A history of proactive audits may reduce penalties if violations are found.
Streamline HR Operations: Ensure that all employee records are accurate, complete and easily accessible.
Protect Organization Reputation: Avoid publicized enforcement actions to help maintain employee and customer trust.

Herbein Human Capital & HR Consulting can support you in the following ways:

Review, conduct and correct errors allowing the HR staff to remain dedicated to their daily operational duties
Train your HR staff on I-9 terminology, policy and compliance protocols
Ensure electronic systems meet DHS I-9 security and retention standards
Establish retention and destruction policies to ensure compliance with governmental regulations
Develop compliance protocols to handle immigration (ICE) inspections

Contact us to schedule a 30-minute complimentary consultation with one of our experts today. We will help you discover areas of concern and provide solutions to ensure total compliance.

Look for our next blog on how to handle immigration (ICE) inspections.

Article contributed by Ramona Wolf, Jenny Batista, and Zoe Yousaitis