I-9 violations are one of the most common — and most expensive — compliance mistakes small businesses make. ICE can audit any employer at any time, and the fines are steep: $272–$2,701 per form for paperwork violations, and up to $27,018 per unauthorized worker. The worst part? Most I-9 errors are simple paperwork mistakes that are entirely preventable.

Here are the 9 most common I-9 mistakes and exactly how to fix them.

Mistake 1: Not completing I-9 for every employee

I-9 is required for every employee hired after November 6, 1986 — regardless of citizenship status, full-time vs. part-time status, or how short the assignment. There are no exceptions for family members, longtime employees hired before you implemented I-9, or short-term hires.

Fix it: Audit your employee roster against your I-9 files. Every current employee should have one. For missing I-9s, complete a new one now (using today's date in the certification) and note in the employer comments that it was completed late.

Mistake 2: Completing Section 2 before reviewing original documents

Section 2 certifies that you personally examined the employee's original documents. You cannot complete Section 2 based on copies, faxed documents, or an employee's verbal confirmation of their documents. The documents must be physically present and examined in person (or via authorized remote verification).

Fix it: Establish a policy that no employee starts work until their original I-9 documents have been personally reviewed. Remote hires may use authorized remote verification procedures — document the method used.

Mistake 3: Missing the Day 3 deadline for Section 2

Employee completes Section 1 on Day 1. You must complete Section 2 no later than the end of the employee's third business day of employment. If Day 1 is Monday, Section 2 is due by end of day Thursday. Many employers don't realize the clock starts on Day 1, not Day 2.

Fix it: Set a calendar reminder for every new hire. Flag it immediately when onboarding starts — not after the first week.

Mistake 4: Accepting improper documents

You must accept any document from the List of Acceptable Documents that appears genuine and relates to the person presenting it. Two common errors:

  • Demanding specific documents: You cannot require a Social Security card or U.S. passport. Employees choose which documents to present from the approved lists.
  • Accepting receipts when you shouldn't: Receipts for replacement documents are only acceptable in specific, limited circumstances (lost, stolen, or damaged document). A receipt for a new document is not a receipt.

Fix it: Post the I-9 Lists of Acceptable Documents and train anyone involved in hiring on what can and cannot be requested.

Mistake 5: Storing I-9s in the personnel file

I-9 forms must be stored separately from personnel files. If ICE audits you, they don't need a court order to inspect I-9 forms — but they do need one for personnel files. Keeping them together gives ICE access to information they're not entitled to.

Fix it: Create a separate I-9 binder or folder — physical or electronic — for all I-9 forms. All current employees in one section, terminated employees in another (with the date of termination noted for retention calculations).

Mistake 6: Not re-verifying expiring documents

When an employee presents an employment authorization document with an expiration date, you must re-verify their work authorization before that document expires. Missing this is a violation even if the employee is fully authorized to work.

Fix it: Create a tickler system (calendar reminder 90 days before expiration) for every employee whose authorization document has an expiration date. Note: you cannot re-verify List B documents — only List C documents (work authorization) require re-verification.

Mistake 7: Incorrect retention and destruction

I-9 forms must be retained for the longer of: (1) 3 years from the date of hire, or (2) 1 year after the date employment ends. Destroying I-9s too early is a violation. Keeping them indefinitely creates unnecessary exposure during audits.

Fix it: Calculate the retention date for each terminated employee's I-9 and destroy on schedule. For a terminated employee, the retention date is the later of 3 years from hire OR 1 year after termination.

Mistake 8: Whiteout, erasures, or altered forms

I-9 forms must not contain whiteout, erasures, or illegible information. If an error was made, use a single line to strike through the incorrect information, enter the correct information, and initial and date the correction. Never use correction fluid.

Fix it: For existing forms with whiteout or erasures, make a note on the form explaining the correction was made in error and attach a signed, dated explanation.

Mistake 9: Not conducting regular internal audits

The best defense against an ICE audit is catching your own mistakes first. An internal I-9 audit lets you identify and correct technical violations before they become fines.

Fix it: Conduct an internal I-9 audit at least annually. Review every I-9 for: completeness of all sections, acceptable documents in Section 2, correct retention calculations, and re-verification dates. Document your audit with a memo noting the date, who conducted it, and any corrections made.

Consider an employment attorney for your first I-9 audit. Self-correcting discovered violations is almost always treated more favorably by ICE than violations discovered during an audit. An attorney can advise on how to document corrections properly.
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