I-9 Fines 2025: Employers Beware of Higher Fines and More Inspections

By Charmaine C. Rozario Reviewed by Charmaine C. Rozario

Immigration Guides, Uncategorized, 14 min read

New I-9 Fines are Here – Are You Ready?

The U.S. Department of Homeland Security (DHS) has just announced higher I-9 fines. Businesses must be on high alert with their employment eligibility verification process to stay ahead of compliance risks. Under President Trump, Immigration and Customs Enforcement (ICE) will be increasing worksite enforcement so expect more I-9 audits.

January 2, 2025, the U.S. Department of Homeland Security (DHS) published the new I-9 Fine Matrix in the Federal Register. This updates the penalties for I-9 compliance violations after government audits of employment eligibility records.

Consequences of Not Following Immigration Employment Laws

Employers who don’t comply with immigration hiring laws will face civil and criminal penalties. These include:

Civil Penalties

Knowingly Hiring or Continuing to Employ Unauthorized Workers
Not Following Form I-9 Verification Requirements
Document Fraud
Document Abuse
Discriminating Against Work Authorized Individuals
Not Notifying the Department of Homeland Security (DHS) of a Final Nonconfirmation (FNC)
Requiring Employees to Provide Financial Guarantees Against Potential Liability
Not Notifying Employees of a No Match
Technical or Procedural Errors: Identifying and correcting technical or procedural errors related to Form I-9 compliance is crucial. Proper training for HR personnel and regular self-audits can help employers avoid penalties associated with uncorrected errors discovered during inspections.

Criminal Penalties

Employers who engage in a pattern or practice of hiring unauthorized workers will face criminal charges which can include:

Big Fines
Imprisonment
Debarment from Government Contracts
Court Orders to Pay Back Pay or Hire Discriminated Individuals

Fines and Penalties

Fines are adjusted for inflation. The most recent penalty amounts are in the Civil Monetary Penalties Inflation Adjustment

New Penalty Structure

Employers need to be aware of the new penalty amounts to stay compliant and avoid big fines. Below is the new penalty schedule:

Substantive Form I-9 Violations: $288 to $2,861 per violation.
Knowingly Employing Unauthorized Workers
- First Offense: $716 to $5,724 per violation. * Second Offense: $5,724 to $14,308 per violation.
- Third or Subsequent Offense: $8,586 to $28,619 per violation.
Document Fraud:
- First Offense: $590 to $4,730 per document.
- Subsequent Offense: $4,730 to $11,823 per document.
Prohibition of Indemnity Bonds: $2,861 per violation.

Source: Penalties for DHS Immigration-Related Violations Rise Again in 2025

Employer’s I-9 Obligations

Employers are required under Section 274A(b) of the INA to verify the identity and employment eligibility of all individuals hired in the U.S. after November 6, 1986. This was part of the Immigration Reform and Control Act (IRCA), which made it illegal to hire undocumented aliens.

To meet this requirement, employers must:

Complete a Form I-9 for each new hire.
Retain the form for at least three years after the hiring date or one year after termination, whichever is later, and maintain accurate records of both active and terminated employees.
Ensure original Form I-9s are available for inspection upon request.

The new penalties are effective January 2, 2025 and apply to cases where fines are assessed on or after February 13, 2025. These increases are in line with the annual inflation adjustments and reflect an approximate 1% increase compared to 2024.

For employers, these penalty hikes mean compliance with immigration regulations is more important than ever, especially with Form I-9 completion, employment verification and document fraud prevention.

Why I-9 Compliance Matters More Than Ever

Top Reasons to Prioritize I-9 Compliance

Bigger ICE Audits – More frequent workplace inspections.
Higher Financial Risk – A single violation can result in multi-thousand-dollar fines.
Legal Consequences – Non-compliance can lead to lawsuits and reputation damage.
Tighter Deadlines – Employers must correct errors within 10 business days of ICE notification.

IRCA Violation Penalty Structure

The Department of Homeland Security (DHS) has raised the penalties for immigration-related violations again as required by the Federal Civil Penalties Inflation Adjustment Act of 2015.Here is the paraphrased text:

Below is a breakdown of the updated penalties compared to the previous amounts:

Type of Violation	2024 Fine	2025 Fine
Substantive Form I-9 violations – minimum	$281	$288
Substantive Form I-9 violations – maximum	$2,789	$2,861
Knowingly employing undocumented workers – 1st offense	$698–$5,579	$716–$5,724
Knowingly employing undocumented workers – 2nd offense	$5,579–$13,946	$5,724–$14,308
Knowingly employing undocumented workers – subsequent offenses	$8,369–$27,894	$8,586–$28,619
Document Fraud (USC 1324c(a)(1)-(4)) – 1st offense	$575–$4,610	$590–$4,730
Document Fraud (USC 1324c(a)(1)-(4)) – subsequent offenses	$4,610–$11,524	$4,730–$11,823
Document Fraud (USC 1324c(a)(5)-(6)) – 1st offense	$487–$3,887	$500–$3,988
Document Fraud (USC 1324c(a)(5)-(6)) – subsequent offenses	$3,887–$9,718	$3,988–$9,970
Prohibition of indemnity bonds	$2,789	$2,861

Document Abuse and Discrimination Penalties

The U.S. Department of Justice (DOJ) has also changed its penalty structure for document abuse and immigration-related employment discrimination. These violations occur when employers ask for too much or unnecessary documentation or discriminate based on immigration status during the I-9 verification process.

Document Abuse: $5,724 per violation
Unfair Immigration-Related Employment Practices:
- 1st Offense: $5,724 per affected individual
- 2nd Offense: $11,823 per affected individual
- 3rd or Subsequent Offense: $14,308 per affected individualTo avoid liability, employers must let employees choose which documents to present from the List of Acceptable I-9 Documents rather than asking for specific forms

Business Impact

These penalties affect all businesses, but construction, agriculture, hospitality and manufacturing companies may be hit harder

**Why This Matters to All Employers**

With more I-9 audits and worksite enforcement by ICE, employers need to get ahead of immigration laws. Non-compliance means big fines and legal headaches.

Here’s what businesses need to know:

1. More ICE Audits and Worksite Investigations

ICE has increased enforcement over the past few years, with a focus on workplace inspections and employer audits.
Employers can expect more random I-9 audits, on-site investigations and raids on unauthorized employment practices.
Trump’s administration’s workplace policies mean more scrutiny in industries with high concentrations of undocumented workers.

2. Internal I-9 Audits

Employers should conduct internal I-9 audits to find and fix errors before ICE shows up.
Hire an immigration attorney or third-party auditor to ensure compliance with changing regulations.
Common I-9 mistakes include:
- Not completing I-9s within three business days of hire.
- Incomplete or incorrect employee info.
- Using fraudulent documents for employment verification.

How to Prepare for ICE Inspections Before They Happen

Bolster I-9 Compliance

To avoid non-compliance and fines, businesses should do the following:

1. Use Latest Form I-9

Make sure you’re using the correct version of Form I-9, which was updated on August 1, 2023, and became effective on November 1, 2023.

Latest version of the form available at USCIS I-9 Central.

2. Comply with E-Verify Remote Verification

Employers using E-Verify must follow these rules:

Only employers in good standing can do remote verification.* You must be in compliance at all times when using remote verification.
Site must be registered with E-Verify before using remote verification.

3. Conduct Regular Internal Audits

Self-audits help businesses find and fix potential issues before an audit.

Review all current employee I-9s (hired after November 7, 1986).
Keep former employees’ I-9s for at least one year after termination or three years after the date of hire, whichever is later.
Check for missing or incomplete I-9s, these are major violations.

4. Train HR on I-9 Best Practices

HR should be trained to:

Complete all sections of Form I-9 properly.
Identify fraudulent documents.
Comply with federal I-9 timelines:
- Section 1 (Employee Information): Must be completed by the first day of employment.
- Section 2 (Employer Review and Verification): Must be completed by the third business day after employment starts.
- Supplement B (Reverification): Must be completed before the employee’s current work authorization expires.

5. Monitor Re-verification Deadlines

Create a tracking system for expiring work authorizations to stay ahead of compliance deadlines.

6. Don’t Rely on Electronic I-9 Software

Even if using electronic I-9 software, HR must manually verify:

Documents presented are genuine and unexpired.
Information entered is accurate and complete.

ICE and DOJ have fined employers who solely relied on I-9 software, even when they thought they were in compliance.

7. Get Legal and Compliance Help

· Work with legal advisors to navigate changing I-9 regulations.

· Use professional services for risk assessments and audits.

What to Expect in an I-9 Compliance Inspection

ICE has increased enforcement and employers should be prepared for unannounced I-9 audits. Here’s what to know:

The Immigration Reform and Control Act (IRCA) of 1986 requires employers to verify the identity and employment eligibility of all employees. Compliance is key to avoiding penalties. Form I-9, under 8 C.F.R. Section 274a.2 is the official document for this verification process.

Key Requirements

Employers must keep original Form(s) I-9 for current employees in paper or electronic form.
For former employees, Form(s) I-9 must be kept for three years from hire date or one year from termination, whichever is longer.
Documentation must be legible, accessible and retrievable in case of an audit.

The I-9 Inspection Process

1. Notice of Inspection (NOI)

The inspection starts with an NOI to the employer.
Employer has at least three business days to submit requested Form(s) I-9.
Employers using E-Verify must keep copies of all List A documents.
Alternative procedures require clear, legible copies of employee documents.

2. Documentation

Homeland Security Investigations (HSI) may request additional documentation, including:

Payroll records
Active and terminated employee lists
Business licenses
Articles of incorporation

3. Review and Inspection

HSI auditors review submitted Form(s) I-9 for technical and substantive compliance.
Employer has 10 business days to correct technical or procedural issues.
Substantive violations and uncorrected issues may result in fines or legal action.

Types of Inspection Notices

After the inspection is complete, HSI issues one of the following notices:

1. Compliance Letter

Employer is compliant with employee verification laws.

2. Notice of Suspect Documents

Submitted documentation does not match the employee.
Employee has the opportunity to provide additional documentation.

3. Notice of Discrepancies

HSI cannot determine employment eligibility for certain employees.
Employee must submit valid documentation to resolve the issue.

4. Notice of Technical or Procedural Failures

Employer has 10 business days to correct errors.

5. Warning Notice

Issued for non-substantive violations, assumes future compliance.

Employers with previous violations or fraud allegations cannot receive a warning.

6. Notice of Intent to Fine (NIF)

Employer receives formal charges of violations.
Employer may request a hearing before the Office of the Chief Administrative Hearing Officer (OCAHO) within 30 days.

Penalties and Fine Calculation

The Federal Civil Penalties Inflation Adjustment Act ensures fines are adjusted annually. The base fine amount depends on the violation percentage, calculated as:

Number of Violations / Total Forms I-9 Inspected = Violation Percentage

This percentage determines the base fine, which may be adjusted using the following factors:

Factor	Aggravating (+5%)	Mitigating (-5%)	Neutral (0%)
Business Size	+5%	-5%	0%
Good Faith	+5%	-5%	0%
Seriousness	+5%	-5%	0%
Unauthorized Workers	+5%	-5%	0%
History of Violations	+5%	-5%	0%

Maximum total adjustment: +25% or -25%.
Fine assessments are based on the date of the NIF issuance.

Frequently Asked Questions (FAQs)

General I-9 Compliance and 2025 Changes

What is Form I-9, and why is it important?
Form I-9 is used by U.S. employers to verify the identity and employment authorization of their employees. Compliance with I-9 regulations is mandatory, and failure to properly complete or maintain these forms can result in significant penalties.
What changes have been made to I-9 violation penalties in 2025?
In 2025, I-9 violation penalties have been increased to reflect inflation and stronger worksite enforcement measures. Employers can expect higher fines for substantive violations, paperwork errors, and knowingly hiring unauthorized workers. Repeat violators face steeper penalties and potential criminal charges.
Why is worksite enforcement expected to increase under a potential second Trump administration?
The Trump administration previously emphasized strict immigration enforcement and worksite raids. If re-elected, similar policies are expected to return, including:
- More DHS/ICE worksite audits and raids
- Stricter penalties for employers knowingly hiring unauthorized workers
- Increased collaboration between ICE and E-Verify
- Heightened focus on industries with a history of hiring undocumented workers
Will the government prioritize any specific industries for I-9 audits?
Yes. Industries with a high reliance on seasonal, manual labor, or historically undocumented workforce are at higher risk. This includes:
- Agriculture
- Construction
- Manufacturing
- Hospitality and food services
- Landscaping
- Healthcare (especially home care services)

I-9 Violation Penalties in 2025

What are the new penalties for I-9 violations in 2025?
Penalties vary depending on the nature of the violation:
- Paperwork violations (e.g., incomplete, missing, or incorrect I-9s)
  - $272 – $2,701 per violation (higher for repeat offenses)
- Knowingly hiring or continuing to employ unauthorized workers
  - First offense: $676 – $6,750 per unauthorized worker
  - Second offense: $5,405 – $13,509 per unauthorized worker
  - Third or more offenses: $8,109 – $27,018 per unauthorized worker
- Criminal charges may apply for willful violations, leading to potential imprisonment.
What happens if I have only minor paperwork errors on my I-9 forms?
Minor paperwork violations (e.g., missing dates or signatures) can still lead to fines. Employers are encouraged to self-audit regularly and correct errors immediately.
Can I be fined for not keeping I-9s long enough?
Yes. Employers must retain I-9 forms for:
- Three years after the hire date OR
- One year after employment ends, whichever is later.
  Failure to maintain records can result in significant penalties.
Will penalties be higher for repeat offenders?
Yes. Employers with prior violations will face exponentially higher fines and possible criminal investigations.

DHS Notice of Inspection (NOI) & Worksite Audits

What is a DHS Notice of Inspection (NOI)?
An NOI is a formal notification from ICE/DHS that they intend to audit your I-9 records. You typically have three business days to provide the requested documents.
What happens during an I-9 audit?

You will receive a Notice of Inspection (NOI) requesting your I-9 forms.
ICE will review the documents for compliance, including missing forms, incomplete sections, and unauthorized employees.
You may receive one of the following:
- Compliance letter (if all is in order)
- Notice of Technical Violations (with a chance to correct)
- Notice of Intent to Fine (NIF) for serious violations

What should I do if I receive an NOI?

Do not panic—but act quickly.
Immediately consult an immigration compliance attorney.
Gather all I-9 forms and supporting documents.
Do not alter or falsify records (this can lead to criminal charges).
Work with ICE cooperatively while protecting your legal rights.

What if ICE agents show up for an on-site inspection?

Request a warrant before allowing access to non-public areas.
Direct employees to remain calm and follow protocol.
Do not interfere with the inspection, but take detailed notes.
Consult legal counsel before providing additional records.

Can ICE arrest employees during an I-9 audit?
While an I-9 audit itself is administrative, ICE may conduct workplace raids in conjunction with audits to detain undocumented workers.

E-Verify & I-9 Best Practices

Is E-Verify mandatory for all employers?
E-Verify is not yet federally mandatory, but some states require it. A second Trump administration could push for national mandatory E-Verify.
How can I ensure my company remains compliant?

Conduct internal I-9 audits annually.
Train HR staff on proper I-9 completion and retention.
Use E-Verify to confirm work authorization.
Correct errors immediately and keep clear documentation.
Maintain a compliance plan and consult an immigration attorney as needed.

What happens if an employee’s work authorization expires?

Employers must re-verify documents before expiration.
If an employee fails to provide updated documents, termination may be required.
Document all verification efforts to protect against discrimination claims.

Can I be penalized for being too strict in verifying work authorization?
Yes. Over-scrutinizing employees or requiring unnecessary documents can lead to discrimination charges under the Immigration and Nationality Act (INA).

Future Trends and Predictions

Will worksite enforcement continue to increase beyond 2025?
Likely. Regardless of the administration, immigration enforcement remains a political focus. Employers should anticipate:

Increased digital audits and AI-based compliance tracking.
More stringent penalties for noncompliance.
Expanded use of E-Verify and electronic I-9 systems.

What legal defenses are available if I receive a Notice of Intent to Fine (NIF)?

Demonstrate good-faith compliance efforts.
Challenge ICE’s findings (e.g., errors in ICE’s assessment).
Negotiate lower fines if violations were unintentional.
Appeal through administrative or judicial review.

Final Takeaway: How Can Employers Prepare?

Use Current I-9 Forms for New Hires
Conduct regular I-9 audits.
Stay updated on legal changes.
Train HR and management on compliance.
Consult an immigration attorney for proactive risk management.
Prepare for potential enforcement under a stricter immigration policy.

Resources

Click here for the updated fine amounts

For more details, see the ICE Form I-9 Inspection Fact Sheet.

Key Takeaways for Employers

✔ Use the correct Form I-9 for all new hires.

✔ Review and update internal compliance policies regularly.

✔ Train HR personnel on proper I-9 completion and document verification.

✔ Conduct routine audits to identify and correct errors before inspections.

✔ Consult legal counsel if unsure about compliance.

Employers who take proactive steps to strengthen I-9 compliance will be in a much stronger position to avoid costly penalties. Don’t wait until an ICE inspection—act now to ensure your business is fully prepared!

Resources for Employers

To assist employers in maintaining compliance, the following resources are available:

Handbook for Employers M-274 – A comprehensive guide on completing Form I-9.
Department of Justice’s Immigrant and Employee Rights Section (IER) – Information on anti-discrimination provisions.

📌 More Information on I-9 Inspections from ICE

U.S. Citizenship and Immigration Services (USCIS) I-9 Handbook
For comprehensive information on Form I-9 compliance, visit the U.S. Citizenship and Immigration Services (USCIS) I-9 Central.