We have learned that increasing numbers of businesses are being audited by the Immigration and Customs Enforcement (ICE) to determine whether employers are complying with the requirement to complete Form I9 for all new hires. This is part of the efforts to clamp down on illegal immigration.

Every business is required to complete Form I9, Employment Eligibility Verification, for each new employee. It does not matter whether or not the employee is known or thought to be a U.S. citizen. It also does not matter whether the employee is hired full-time, part-time, or for just one day. The following are some things you should be aware of:

• Employees must complete Section I of Form I9 on their first day of work.
• Employers must confirm an employee's eligibity to work within three days of their start date.
• The I9 requires certain documents - you do not have to keep photo copies of the documents you rely on, but you do have to record identifying information from these documents. If you photo copy documents you must do so consistently for all employees. Employees and Employers must complete Form I9 whether or not copies of identifying documents are retained.
• You must keep the forms for at least the later of three years after date of hire or one year after termination date.
• There are substantial penalties for not properly complying with the Form I9 requirements.

Penalties for first time offenders range from $375 to $3,200 per employee based on the percent of employees for which there is not a properly completed Form I9.

If you have not been complying with the requirement to obtain Form I9 for all new employees hired since 1986, then you should obtain one for each employee for whom you do not have a complete Form I9 and do so going forward. This may help reduce your penalties if audited.

See the attachment below for more information and contact Gosule, Butkus & Jesson, LLP if you need assistance.