In Denver, three businesses were fined over $8 million combined for getting their Form I-9 process wrong.
ICE (Immigration and Customs Enforcement) found missing forms, late verifications and documents that didn’t meet requirements.
The rules apply to every employer. Even a small business could face tens of thousands of dollars in fines for mistakes on just a few employees.
In many cases, it comes down to one simple step that gets missed.
I’ve written about what went wrong and how to get it right:
📋 The step that’s missed more often than you’d think
✅ What you actually need to do under US law
🛡️ How to set up I-9 checks that protect your business
Read it below 👇
You can do everything you think is right and still get hit with a massive fine. That happened in a recent US case where ICE (Immigration and Customs Enforcement) issued millions in penalties after finding serious problems with businesses’ hiring records.
In Denver, three businesses were fined over $8 million combined for employment eligibility violations. While those companies weren’t small mom-and-pop shops, the rules apply to every employer, and the penalty structure means that even a small business could face tens of thousands of dollars in fines for mistakes on just a few employees. Even a single misstep can wipe out your legal protection.
Where it went wrong
One of the most common I-9 mistakes is failing to properly review an employee’s original identity and work authorization documents. In the Denver case, investigators found missing or incorrect forms, late verifications and documents that didn’t meet requirements. For a small business, a single oversight, like failing to see original documents in person or accepting copies instead, can invalidate the entire I-9 process for that employee. Having a Social Security number, tax forms or proof of prior employment is not enough under US law.
What you actually need to do
The I-9 process has strict requirements:
- Review original, unexpired documents from the official list of acceptable documents (no photocopies).
- Complete and sign Section 2 of the Form I-9 within three business days of the employee’s start date.
- If you make copies of documents, store them with the I-9 and keep them secure.
- Retain I-9 forms for three years after the hire date or one year after termination, whichever is later.
Missing any of these steps removes your legal protection, even if you acted in good faith.
The reality of enforcement
I-9 compliance is no longer just a paperwork exercise. ICE is actively auditing businesses of all sizes and the penalties can be steep. For first offences, fines can range from hundreds to thousands of dollars per violation. Repeat offences can see fines increase to more than $25,000 per violation. Only a few forms with mistakes can result in a total that would cripple a small business. The Denver example demonstrates that enforcement applies equally to businesses with 3 employees or 300.
Protecting yourself
I-9 compliance protects your business from heavy penalties. Review your current process and confirm that:
- Every employee hired onto your payroll as a W-2 employee completes an I-9.
- Original documents are reviewed in person for every new hire.
- Section 1 is completed by the new hire on or before the first day of work and Section 2 is completed by the employer within the three-day deadline.
- Forms are kept for the correct retention period.
- Everyone involved in hiring understands the process.
Fix any gaps in your system now. Putting a clear process in place is far easier, and far cheaper, than trying to correct problems after fines have been issued.
Contact us if you need help with setting up an I-9 process that works for your business. Addressing compliance early can save you from costly mistakes later.
