Accurately completing, tracking, and storing Form I-9 for new hires and existing employees is a vital step in remaining compliant with federal labor laws and ensuring employment eligibility across your workforce. In recent years, some changes have occurred regarding digital filing and compliance penalties. We’re here to provide the resources and information you’ll need to stay up to date on regulatory changes and successfully walk your new hires through the I-9 process. We’ll also highlight the benefits of using HR software like UKG Ready, which facilitates easy digital completion, storage and tracking of I-9 forms for your entire organization.
Background
Since the passing of the Immigration and Reform and Control Act of 1986, employers have been required to verify employee eligibility to work in the United States by ensuring accurate completion of new hire I-9s (and I-9s for existing employees, when required). Form I-9 confirms the identity and work eligibility of a new hire or employee using employee-provided documents, whether they are a citizen or noncitizen. Employees as well as employers (or approved employer representatives) must complete the form and it is the employer’s responsibility to review the employee-submitted documents, accurately record information on Form I-9, and submit and retain Form I-9 for each employee.
Streamline I-9 Completion During Onboarding
Using HR software like UKG Ready, a new hire can easily complete a variety of onboarding steps, including those required for Form I-9, in a single digital platform that is intuitive and allows for easy, transparent access for employer and new hire alike.
Using UKG Ready for Form I-9 and other HR-related tasks is particularly important because of the timeline and recordkeeping requirements related to Form I-9. For instance, employees must complete Section One of Form I-9 by their first day of employment, and employers have no more than three days to review and approve all employee-submitted documents and complete the remaining portion of Form I-9. A digital platform simplifies employee submission of approved documentation and expedites employer review of documentation in the event that a change is required or an employee must be suspended or discharged. Of course, a platform like UKG Ready ensures that new hires have ample time to begin all of their onboarding steps well in advance of their official Day One start, reducing the likelihood of delays due to late receipt of documentation or inaccurate completion of Section 1.
Consequences of I-9 Noncompliance
The financial, legal, and reputational consequences of I-9 noncompliance can vary based on whether an I-9 form is incomplete, never submitted, or submitted late. I-9 audits have increased significantly in recent years, so let’s explore the specific penalties that apply to different forms of I-9 noncompliance.
Incomplete I-9s – When employment or identity verification information was inaccurately completed or missing, fines can range from $220 to approximately $2,200 per I-9.
Missing I-9s – Whether an employer knowingly or unknowingly fails to prepare an I-9 for a covered employee, this is regarded as deliberate employment of an unauthorized alien and can lead to significant fines. In this case, employers could face criminal prosecution, adjusted government benefits/contracts, all in addition to sizable fines.
Failure to Use Updated Form I-9 – During the COVID-19 pandemic, some aspects of Form I-9 were altered, including instructions regarding employer completion of Section 2, qualifications regarding authorized representatives for employers, and procedural changes for requesting paper I-9s. Employers that fail to follow the new instructions or use updated Form I-9 could face significant fines and penalties.
Liability Determination and Protocols for Correcting Violations
In general, if an isolated procedural or technical violation occurs, employers are granted 10 business days to address the violation. Liability for any I-9 noncompliance can also be reduced or heightened based on the severity of the offense, the employer’s past record of (non)compliance, company size, and whether the violation involved the deliberate and consistent hiring of unauthorized aliens.
Emphasizing and Supporting Employee Responsibility
Whether they are a new hire or existing employee, employers must encourage all of their employees to frequently review their work-authorizing documents to ensure ongoing eligibility to work. This includes applying for any extensions, renewals, and submitting updated documents as needed to prevent expiration of past authorizations. As with all other facets of the I-9 process, employee documentation and updates are more easily managed within a single digital platform like UKG Ready, where employer and employee can jointly track and monitor changes, deadlines, and more.
Employer Requirements for Storage and Retention of I-9 Records
With a noteworthy increase in I-9 audits and inspections by the federal government, it’s more important than ever for employers to implement a streamlined system for storing and retaining I-9s for current and past employees. Employers must have the I-9 records of current employees readily accessible, while records from former employees must be retained for up to three years after their first date of hire, or up to one year past their termination/resignation date.
Although it’s possible to store paper I-9 records in a physical location, this can create a range of issues administratively and put sensitive employee and employer data at greater risk. In terms of timeline, a paper-based system could also lead to legal or organizational issues if an audit occurs and records must be drawn from a range of individual employee files within the required three-day period. With HR software like UKG Ready, these files are easily accessible at any time and stored within an encrypted and secure cloud-based platform, ensuring your organization can track and complete any necessary re-verifications and remain compliant with all federal I-9 retention requirements.
Streamline Onboarding and Compliance with Cello HR
Accurate and legal I-9 completion is just one important phase of the onboarding process, which can be streamlined for you and your employees with the use of an intuitive mobile platform like UKG Ready. Enjoy peace of mind about digital I-9 completion, storage, and tracking, and ensure ongoing legal compliance. Contact Cello HR today to learn more about how we can help you navigate the complexities of HR compliance and optimize onboarding to support productivity and employee retention.