ICE and I-9 Audits – The Stakes Have Never Been Higher for Employers
Now more than ever, employers must ensure that they are complying with federal immigration law, which requires verification of the identity and work authorization of employees and prohibits employers from hiring unauthorized workers in light of three significant shifts in federal policy.
By way of background, the Immigration Reform and Control Act (IRCA) prohibits employers from (1) hiring employees that they know do not have authorization to work in this country and (2) discriminating against employees on the basis of their citizenship or natural origin. Federal immigration law permits the following individuals to work in this country: Citizens; Non-Citizen Nationals; Lawful Permanent Residents; and Foreign Nationals with Authorization.
The United States Customs and Immigration Services (USCIS) created the I-9 for employers to comply with IRCA. It is mandatory for all new employees and some employees that are rehired after November 6, 1986. Employees must complete their section on or before their first date of employment, and employers must complete their section and must inspect the documentation that the employees provide within three (3) business days from their start date.
IRCA also requires employers to retain completed Form I-9s and the supporting documentation provided for three (3) years from the date of hire or one (1) year from the date of separation from employment, whichever is last in time.
Non-compliance with the substantive or technical requirements of IRCA can expose employers to civil and/or criminal liability. For instance, currently, the minimum fine for a first-time violation is $288, and the maximum fine for a first-time violation is $2,861. United States Customs and Immigration Enforcement (ICE) enforces IRCA and regularly conducts compliance audits to ensure that employers are complying with this law.
Employers can expect an increase in ICE’s enforcement activity because of three recent developments.
First, on May 12, 2025, Matthew R. Galeotti, Head of the Criminal Division for the U.S. Department of Justice, issued a Memorandum that alters the Criminal Division’s enforcement priorities and Amendments to its Corporate Whistleblower Awards Pilot Program (“Program”). Under these changes, whistleblowers that provide “original and truthful information about corporate misconduct,” such as violations of federal immigration law, which “results in a successful forfeiture may be eligible for an award.”[1] Under the Program, whistleblowers may receive up to 30% of the first $100 million in net proceeds that are forfeited and up to 5% of any net proceeds that are forfeited between $100 million and $500 million.
Second, on July 4, 2025, President Trump signed the “One Big Beautiful Bill Act” (OBBBA) into law, which provided ICE with the resources to hire 10,000 additional agents. These agents will assist ICE with conducting I-9 audits to determine if employers have hired workers without authorization.
Third, on July 21, 2025, Todd Lyons, the Acting Director of ICE, issued a statement explaining that the agency is not focusing solely on individuals without work authorization. Rather, the agency is “focused on these American companies that are actually exploiting these laborers.”
Each of these developments singularly and collectively emphasize that employers must be vigilant with respect to compliance with federal immigration law. Employers, especially with the assistance of counsel, can be proactive in this area through trainings on proper onboarding processes, the implementation of appropriate policies and procedures, and conducting internal I-9 audits and implementing corrective action based on the outcome.
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Partner Giovanni Antonucci Di Cesare and Junior Partner Allison Bustin, Employment, Labor, and Benefits Department, are available to counsel and address any I-9 compliance issues and provide internal or external I-9 audits, tailored to your needs.
This publication and/or any linked publications herein do not constitute legal, accounting, or other professional advice or opinions on specific facts or matters and, accordingly, the author(s) and PierFerd assume no liability whatsoever in connection with its use. Pursuant to applicable rules of professional conduct, this publication may constitute Attorney Advertising. © 2025 Pierson Ferdinand LLP.
[1] Memorandum from the Assistant Attorney General, Focus, Fairness, and Efficiency in the Fight Against White-Collar Crime (May 12, 2025), https://www.justice.gov/opa/media/1400141/dl?inline.
