Why Employers Must Prepare Now for I-9 Audits

U.S. employers, especially those in construction, healthcare, logistics, and agriculture, are facing an escalating wave of I-9 audits and ICE inspections in 2025 — and waiting until federal agents arrive could be disastrous.

According to Alejandro Pérez, partner at Pierson Ferdinand and board president of the ACLU of Arizona, audits are showing “teeth” this year. With just 72 hours’ notice and the potential for fines, operational disruption, and reputational fallout, companies can’t afford to be reactive. “The dignity of workers, the legal security of the business and the integrity of the employer-employee relationship is at stake,” Pérez wrote.

Enforcement Is Back — and It’s Tougher

Since early 2025, federal agencies have ramped up unannounced inspections and targeted audits, focusing on industries with high concentrations of immigrant labor.

Penalties are steep:

• $272 to $2,861 per I-9 form for paperwork violations.
• Up to $28,619 per unauthorized worker if ICE determines a company knowingly employed individuals without valid documentation.

But Pérez warns the true costs go beyond fines. “The disruption to your business operations and employee trust can be far more damaging and much harder to recover from,” he said.

Common Mistakes Employers Make

Even well-meaning employers fall short. Pérez notes that compliance failures often begin with a false sense of security: assuming forms are complete simply because they’re on file. In reality, audits uncover recurring problems such as:

• Missing or late signatures.
• Expired identification documents.
• Use of outdated I-9 forms.
• Inadequate re-verification for employees under Temporary Protected Status (TPS), parole programs, or changing federal work authorization rules.

When companies try to “clean up” documents after receiving an audit notice, they often dig themselves deeper. Pérez cautioned that rushed remediation, especially without legal oversight, can be seen as admission of liability or even a cover-up.

Building a Legally Defensible Response Plan

The key, Pérez emphasizes, is to act before ICE shows up.

• Conduct internal audits — ideally under attorney-client privilege — to identify and correct errors safely.
• Create a formal ICE response protocol, including designated points of contact, warrant verification procedures, and staff training.
• Communicate with employees clearly and in culturally competent ways, often in multiple languages, to prevent fear and confusion.

“If federal agents show up at your door, your response in the first 10 minutes can shape the entire trajectory of the investigation,” Pérez advised.

A Test of Leadership, Not Just Compliance

I-9 compliance isn’t just a legal checkbox — it’s about safeguarding trust. When mishandled, audits can devastate morale, especially among immigrant workers. Pérez stressed that companies risk undoing years of investment in DEI, safety, and employee engagement if they don’t prepare.

“These audits aren’t just a legal risk, they’re a leadership test,” Pérez said.

Act Now, Not Later

For employers that haven’t reviewed I-9 procedures in the past year or haven’t updated policies to reflect new TPS and documentation rules, Pérez warns they’re already behind.

“A well-run compliance program won’t eliminate enforcement risk entirely. But it can dramatically reduce liability, minimize disruption and signal to your workforce that you’re committed to both the law and their well-being,” Pérez wrote.

His message is clear: “Don’t wait for ICE to show up. Compliance is no longer optional, and in today’s environment, ignorance is no longer a defense. It’s time to lead.”

Originally reported by Alejandro Perez in Construction Dive.