With immigration enforcement elevated under the current U.S. administration, I-9 compliance is now a major focus for employers across industries — especially those with large, high-turnover workforces. For companies in sectors like facilities management, healthcare support, and residential services, the risks of non-compliance have never been higher.
The Compliance Challenges
Employers face particular difficulties when:
- Onboarding at scale – High volumes of new hires increase the likelihood of I-9 mistakes.
- Relying on staffing agencies – Contractors’ errors can still expose the primary company to liability.
- Managing decentralized teams – Multi-site operations make oversight inconsistent.
- Reverifying work authorization – Tracking temporary EAD renewals or extensions can be complex.
Legal and Financial Risks
Civil penalties for I-9 violations are steep and can quickly multiply:
- Substantive errors: fines ranging from a few hundred to several thousand dollars per form.
- Knowingly hiring unauthorized workers: escalating fines for repeat violations, with exposure reaching tens of thousands of dollars per worker.
For mid-sized employers, even a handful of mistakes can mean multi-million-dollar exposure.
M&A Due Diligence
I-9 compliance has also become a critical due diligence issue in mergers and acquisitions. Buyers now review I-9 records carefully, since undisclosed violations can:
- Trigger purchase price reductions or indemnities,
- Destabilize the workforce if terminations are required, and
- Lead to reputational harm with government or institutional contracts.
Reducing Risk: Practical Steps
Employers can mitigate I-9 risk through:
- Self-audits to identify and correct deficiencies,
- Clear vendor oversight when working with staffing firms,
- Consistent training for HR and compliance teams,
- Escrow or indemnity agreements in M&A transactions to cover potential exposure.
NPZ Guidance
At NPZ Law Group, we help employers stay compliant and avoid penalties by conducting I-9 audits, advising on reverification processes, and preparing companies for government inspections. Whether you’re an employer managing a high-volume workforce or a buyer evaluating a potential acquisition, proactive I-9 compliance is essential.
Frequently Asked Questions (FAQ)
1. Why is I-9 compliance such a priority now?
The government has increased unannounced audits and inspections, especially in labor-intensive industries.
2. What are the penalties for I-9 violations?
Civil fines range from hundreds to thousands of dollars per violation, with higher penalties for knowingly employing unauthorized workers.
3. Can staffing agencies’ mistakes affect my company?
Yes. If your business benefits from unauthorized workers provided by a staffing agency, you can still face liability.
4. How does I-9 compliance affect mergers and acquisitions?
I-9 issues uncovered in due diligence can reduce purchase price, create indemnity obligations, or trigger remediation costs post-closing.
5. What can employers do to reduce risk?
Regular audits, strong recordkeeping, clear contracts with staffing agencies, and legal review during M&A can help limit exposure.
Contact Information
If you or your family members have any questions about how immigration and nationality laws in the United States may affect you, or if you want to access additional information about immigration and nationality laws in the United States or Canada, please do not hesitate to contact the immigration and nationality lawyers at NPZ Law Group. You can reach us by emailing info@visaserve.com or by calling us at 201-670-0006 extension 104. We also invite you to visit our website at www.visaserve.com for more information.