2025 ICE I-9 Fine Increases

On Jan. 2, 2025, the Department of Homeland Security (DHS) issued a final rule adjusting its civil monetary penalties for inflation for 2025. The updated penalty amounts apply to violations that occurred after Nov. 2, 2015, and are assessed on or after Jan. 2, 2025.

U.S. Immigration and Customs Enforcement (ICE) has increased penalties for Form I-9 violations.

Here are the 2025 U.S. Immigration and Customs Enforcement Civil Penalties Adjustments:

I-9 Inspection

The Immigration Reform and Control Act of 1986 mandates that employers verify their employees' identity and employment eligibility using Form I-9. Employers must retain these forms for current employees and for a specified period for former employees. The administrative inspection process begins with a Notice of Inspection (NOI), giving employers at least three business days to produce the requested Form(s) I-9.

During inspections, Homeland Security Investigations (HSI) may request additional documentation, such as payroll records and business licenses. If technical or procedural errors are found, employers have 10 business days to correct them. Substantive violations or uncorrected errors may result in fines, and knowingly hiring unauthorized workers may lead to more severe penalties, including criminal prosecution. HSI issues various notices based on inspection findings, such as:

• Notice of Inspection Results: Also known as a "compliance letter," this notice confirms that a business meets all employee eligibility verification requirements.
• Notice of Suspect Documents: Indicates that employee documentation may be invalid. Employers and employees can provide additional proof of work authorization to contest this finding.
• Notice of Discrepancies: Indicates uncertainty about employee eligibility. Employers should inform employees and allow them to submit further documentation to HSI.
• Notice of Technical or Procedural Failures: Identifies errors in Form I-9 completion, granting employers 10 business days to correct them. Uncorrected issues become substantive violations.
• Warning Notice: Issued for substantive violations with an expectation of future compliance, except in cases of repeated offenses, failure to correct errors, complete non-compliance, hiring unauthorized workers, or fraud.
• Notice of Intent to Fine (NIF): Issued for serious violations, including uncorrected errors and knowingly hiring unauthorized workers.

The following table represents HSI's criteria used to enhance, mitigate, or deem neutral the base fine amount:

Please see the U.S. Immigration and Customs Enforcement Form I-9 Inspection Fact Sheet for complete information about each type of HSI notice and the enhancement matrix.

Considerations for Employers

Prioritizing compliance may help employers avoid the risk of increased fines and penalties for Form I-9 violations. Increased oversight, heightened enforcement, and on-site inspections may be a possibility. Employers should consider regular self-audits to identify and correct technical or procedural errors before a government inspection. Proper training of HR personnel and managers on accurate completion, storage, and retention requirements is equally important. Employers should also consider implementing processes for verifying identity and employment eligibility, including tracking deadlines for retention and re-verification where necessary.

Experienced counsel can provide guidance in implementing compliant Form I-9 practices or addressing issues identified during audits.

More insights into I-9 compliance are available on the Greenberg Traurig Inside Business Immigration Blog.

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