As a small business owner in Texas, your employees are the backbone of your success. But making sure they are legally allowed to work in the U.S. and keeping your business safe from government penalties can be overwhelming. With increased federal scrutiny on employment verification and workplace compliance, many business owners are growing concerned about how immigration enforcement might impact their workforce. Many small businesses don’t realize that failing to follow employment verification requirements can lead to costly fines, audits, or disruptions that put both your business and employees at risk.
Right now, the government is increasing workplace inspections and immigration enforcement. Even businesses that do their best to follow the law can face penalties for simple paperwork mistakes. All employers are required by law to confirm that their employees are legally authorized to work in the U.S. This means collecting certain documents from employees and keeping proper records. The government refers to this process as I-9 employment verification, named after the required form that businesses must complete for every employee.
To navigate these challenges, business owners must understand the employment verification process and why compliance is essential—not only to avoid penalties but also to protect their workforce.
In this post, we’ll explain:
- What this employment verification process is and why it matters for your business and employees.
- How businesses can unknowingly fall out of compliance, putting everyone at risk.
- How the current climate of increased immigration enforcement makes compliance more important than ever.
- Real-world cases of I-9 enforcement actions and the penalties involved.
- How The Allen Firm’s legal services can help you protect both your business and employees by ensuring full compliance.
What Is Employment Verification and Why Is It Important?
The law requires all U.S. employers to verify that each person they hire is legally allowed to work in the country. To meet this requirement, employers must collect documents from new employees, such as a driver’s license and Social Security card, and fill out a government form. This form is called Form I-9, and it must be completed and kept on file for every employee (USCIS).
This law has been in place since 1986, when the government made it illegal to knowingly hire workers who are not authorized to work in the U.S.
Beyond simply verifying employment eligibility, businesses must also follow strict deadlines and recordkeeping requirements to remain compliant.
Making sure you complete and keep these records protects your business from fines and keeps your employees safe from workplace disruptions. Right now, the government is cracking down on companies that fail to follow these rules, and even small businesses can be audited without warning.
Timing and Recordkeeping Requirements
- Employers must complete Form I-9 within three business days of the employee’s start date.
- Employers must keep I-9 forms on file for at least three years after hire or one year after the employee leaves, whichever is later.
- Keeping good records helps protect both your business from government audits and your employees from unnecessary workplace issues.
Unfortunately, despite these clear requirements, many small businesses unknowingly fall out of compliance due to common mistakes in the verification process.
Small Businesses Are Often Unknowingly Non-Compliant
Many small businesses don’t have HR departments and in-house legal counsel, so they may not realize they are making mistakes when completing employment verification forms. Unfortunately, even simple errors can lead to big penalties. Some of the most common mistakes include:
- Not filling out all required information – forgetting to complete part of the form.
- Using an outdated Form I-9 – only the most recent version is accepted.
- Waiting too long to verify an employee’s documents – forms must be completed within three days of hire.
- Asking for the wrong documents – employers must follow strict rules on what documents they can ask employees to provide.
- Not storing I-9 forms properly – losing or misplacing forms can lead to fines.
These mistakes may seem minor, but they can have serious consequences. When businesses fail to meet I-9 compliance standards, they risk government audits, financial penalties, and even criminal liabilities.
Government Audits and Penalties for I-9 Violations
If your business is audited, you will have just three business days to provide all I-9 forms for review.
Possible penalties include:
- Paperwork mistakes: Fines ranging from $230 to $2,292 per violation (USCIS Penalties).
- Hiring workers who aren’t legally authorized: Fines ranging from $573 to $22,927 per worker, depending on the number of violations and whether they are repeat offenses (DOJ IER Section).
- Criminal charges: Employers who knowingly and repeatedly violate employment laws can face criminal prosecution, including potential jail time.
- Company reputation damage: Being targeted in an audit or investigation can lead to public scrutiny and loss of customer trust.
- Workplace disruptions: If employees are detained or terminated due to non-compliance, businesses can suffer staff shortages and operational delays.
- Disqualification from government contracts: Businesses with repeated violations may be barred from federal contracts, impacting long-term revenue streams.
To illustrate the real impact of non-compliance, let’s look at some notable enforcement cases where businesses faced significant penalties due to I-9 violations.
Real-World Enforcement Cases
- Buffalo Transportation, Inc. v. United States (2016): A small business was fined $75,600 for missing paperwork, even though all employees were legally authorized to work (Justia Law).
- 2017 Nationwide Enforcement: Businesses were ordered to pay $97.6 million in judicial forfeitures, fines, and restitution, along with $7.8 million in civil fines for I-9 violations (ICE FY2017 Report).
- Tree-Trimming Company Case: Paid a record $95 million settlement after an I-9 investigation (ICE News Release).
These cases highlight the risks businesses face when they fail to comply with employment verification laws. While these errors are common, they are also avoidable with the right guidance. Many businesses successfully protect themselves by implementing proactive compliance strategies, such as regular internal audits and employee training.
Don’t Wait – Protect Your Business and Employees Today
With heightened immigration enforcement and mass deportation policies in effect, ensuring your I-9 compliance is more crucial than ever. Protect your business, safeguard your employees, and eliminate legal risks with The Allen Firm’s expert guidance.
Call us today at (254) 965-3185 or email [email protected] to schedule a consultation.