Written by James Chae — Co-Founder, Expert Sapiens
Reviewed March 2026
Immigration
Definition
The federal employment eligibility verification process that every U.S. employer must complete for each new hire, confirming the employee's identity and legal authorization to work.
I-9 verification is a mandatory compliance process established by the Immigration Reform and Control Act of 1986 (IRCA). Every U.S. employer must complete a Form I-9 for every employee hired after November 6, 1986, regardless of citizenship or national origin. The form requires employees to attest to their employment authorization and present acceptable documentation — such as a passport, permanent resident card, or a combination of a driver's license and Social Security card — that establishes both identity and work authorization.
The process unfolds in two sections: the employee completes Section 1 on or before their first day of work, and the employer reviews and records the documents in Section 2 within three business days of the start date. Employers must physically examine original documents (or use the authorized remote verification option introduced post-pandemic) and determine whether they reasonably appear genuine and relate to the employee presenting them.
Employers are required to retain completed I-9 forms for three years after the date of hire or one year after employment ends, whichever is later. Reverification is required when an employee's work authorization expires. E-Verify, a voluntary (but sometimes mandatory) federal online system, allows employers to cross-check I-9 information against Social Security Administration and DHS databases for additional confirmation.
Failing to comply carries significant financial penalties — ranging from $272 to $2,701 per paperwork violation (as of recent adjustments) and up to $27,018 per unauthorized worker for knowing employment violations. ICE audits can result in fines totaling hundreds of thousands of dollars for larger employers.
For business owners, I-9 compliance is not optional — it is a federal legal obligation that applies from the moment you make your first hire. A single missed or improperly completed form can trigger fines during an ICE audit, and systemic errors across a workforce can result in penalties that threaten a company's financial stability. The rules around acceptable documents, reverification timing, and retention periods are more nuanced than they appear.
An immigration or employment law attorney can audit your existing I-9 files, identify errors, and implement a compliant onboarding process before federal auditors do it for you. Companies that operate across multiple states or hire foreign nationals on work visas face additional complexity — making professional guidance especially valuable.
Written by James Chae — Co-Founder, Expert Sapiens
Reviewed March 2026