Internal I-9 Audits: What They Are and Why They Matter

A thriving, growing business in the bustling business environment of California is the dream. But behind it all is one of the nitty gritty backbones that keep it standing: your compliance with laws. Whether you’re a small business or an enterprise, your Internal I-9 audits are what safeguard you against big fines and legal troubles. 

This is not something that you should be overlooking. In fact, failing to comply with your I-9 requirements can cost you approximately $250-$10,000 per violation. 

Beyond this, non-compliance can also cause reputation damage and can escalate to criminal charges. Just one mistake can put your whole company at risk. 

That said, here is everything you need to know about Internal I-9 audits and how you should go about them.

Internal I-9 audits are a way to check your company’s Employment Eligibility Verification forms (Forms I-9). This helps ensure compliance with federal immigration laws set by the United States Citizenship and Immigration Services (USCIS). 

It checks that your business is correctly documenting employees' work eligibility. This is in line with the Immigration and Nationality Act (INA). It also ensures employees fill out the forms accurately and on time.

They also include checking employment authorization and immigration status, ensuring that all employees hired meet legal requirements.

It reduces your risk management

Labor laws in California are among the strictest in the country. If you do not follow your Internal I-9 audits, you could face large fines and legal consequences. Regular audits can help you find paperwork errors and gaps in procedures. This way, you can fix issues before they lead to penalties for your business.

Your services are not the only thing that makes your business competitive in California. Your HR strategy is important too. 

I-9 audits can be a roadmap to optimize your HR operations. This is very important when hiring an employee. Delays or mistakes in processing their work documents can disrupt onboarding.

Which, in turn, enhances your candidate experience. 

With a better process, your HR department can spend less time on paperwork. They can focus more on strategies like talent development, upskilling, and employee engagement. All these efforts help support long-term business growth.

Lastly, your I-9 audits will also help identify (and correct) errors before they become problems in the first place. It is a progressive way to address compliance issues.

Given the bustling nature of the state, businesses in California may be more frequently subjected to immigration compliance checks. Having a clean history of I-9 edits puts you in a better position to comply during ICE inspections.

It demonstrates good faith

Regular I-9 compliance shows that you follow the law. This can help prove your good faith during inspections or legal issues.

Collect all current and past I-9 forms and organize them into clearly labeled I-9 files. With a better process, your HR department can spend less time on paperwork. They can focus more on strategies like talent development, upskilling, and employee engagement. 

All of these help support long-term business growth. Examine each of your forms for accuracy and completeness. Correct documentation from the acceptable documents lists. Pay particular attention to each section, here are some common pitfalls and areas to double-check:



• Incomplete sections
• Incorrect information
• Untimely completion (verify if it was completed by the employee on or before their first working day)
• Complete documentation from the appropriate lists
• Document expiration dates
• Improper retention. You must follow I-9 guidelines. This means keeping forms for at least three years after hiring. 
• If you terminate an employee, retain the forms for one year after their termination. Always follow the longer retention time frame.

Make all corrections by initializing and dating any changes on the form. Ensure you document every step in an audit log to maintain a clear record of corrections.

Internal I-9 audits should not be a one-time activity. Regularly complete the audit to identify gaps and ensure continued compliance.

Finally, provide regular training to your HR team on I-9 compliance requirements and updates. A well-informed team is your best defense against errors. Referring to resources like the Handbook for Employers can be invaluable during training.

Failing to comply with I-9 requirements can lead to significant financial, legal, and reputational consequences for businesses.

1. Monetary Fines: Non-compliance with I-9 requirements can result in fines ranging from $250 to $10,000 per violation, depending on the severity and type of infraction.
2. Paperwork Violations: Errors or omissions in completing I-9 forms can lead to fines between $250 and $2,500 per form.
3. Knowingly Hiring Unauthorized Workers: If a business is found employing individuals without proper work authorization, fines can range from $5,000 to $10,000 per worker.

Employers who intentionally or repeatedly hire unauthorized workers may face criminal charges, including imprisonment for company executives or managers involved.

A history of non-compliance can make a business a target for future inspections or audits, increasing ongoing compliance costs.