If you’re a restaurant owner, you know that sticking to employment laws is crucial—yet it can feel daunting at times. Among the must-haves is Form I-9, a document that verifies your employees’ identity and authorization to work in the United States. While it may seem like just another form in an already large stack of paperwork, mishandling I-9s can lead to severe penalties, including hefty fines and even legal repercussions.
At Lift HCM, we’ve witnessed first-hand how easily I-9 compliance can trip up even the most diligent restaurant owners. The combination of tight budgets, high turnover, and fast-paced work environments can make it hard to stay on top of every regulation. But with the right guidance, you can protect your business—and that’s where this article comes in.
In this article, we’ll break down everything you need to know about I-9 compliance, from why the form exists in the first place, to how to fill it out correctly, to conducting internal audits that keep your records squeaky clean. By the end, you’ll have the confidence and know-how to prevent I-9-related mistakes and keep ICE (U.S. Immigration and Customs Enforcement) off your back.
Table of Contents
Understanding the I-9 Form
What Is the I-9 Form?
The I-9 Form, officially called the Employment Eligibility Verification Form, is a U.S. Citizenship and Immigration Services (USCIS) document. It’s required for all employees hired after November 6, 1986. Essentially, it confirms two key things:
- Identity: Who the individual is (verified through documents like a driver’s license or passport).
- Authorization to Work: Proof they are legally allowed to work in the United States (for example, a U.S. passport, permanent resident card, or work permit).
Key I-9 Requirements at a Glance
- Universal Requirement: Every new employee—citizen or noncitizen—must complete an I-9.
- Employer Verification: Employers are responsible for reviewing and verifying the documents the employee provides.
- Strict Timeline: The form must be completed within three business days of the employee’s start date.
Failing to properly complete and maintain I-9 forms can lead to fines ranging from a few hundred dollars to thousands of dollars for each violation. That’s a lot of risk riding on a single piece of paper.
How to Fill Out the I-9 Form Correctly
Form I-9 is divided into three major sections. Let’s explore each one step-by-step to ensure accuracy.
Employee Information and Attestation
- Employee’s Responsibility: The employee must fill this out by their first day of work.
- Personal Data: Name, address, date of birth, Social Security number (if applicable), and more.
- Attestation: The employee checks one of the categories verifying their authorization to work in the U.S. (e.g., citizen, permanent resident, or individual with work authorization).
- Signature and Date: The employee must sign to affirm the information is correct.
Common Mistake: An employee might forget to sign or date the form. Even a tiny oversight like this can lead to a violation during an ICE audit.
Employer Review and Verification
- Employer’s Responsibility: Must be completed within three business days of the employee’s start date.
- Document Examination: You must physically inspect the original identification documents the employee provides. These documents fall under three lists:
- List A: Documents that establish both identity and employment authorization (e.g., U.S. passport).
- List B and List C: Documents that establish identity (List B) and employment authorization (List C) when presented together (e.g., driver’s license + Social Security card).
- Record Details: Note the document title, issuing authority, document number, and expiration date.
- Certification: By signing, you certify that you physically examined the documents and that, to the best of your knowledge, they appear genuine and relate to the employee.
Common Mistake: Accepting expired or invalid documents. If ICE checks your records, any mention of “expired” can raise a red flag.
Reverification and Rehires
- When Needed: Only if an employee’s work authorization has an expiration date or if you rehire an employee within three years of the date the original I-9 was completed.
- Reverification: The employer must confirm renewed authorization for employees who have temporary work permits.
- Rehiring: If the employee’s previous I-9 is still valid, you may only have to update Section 3 rather than filling out a new form.
Common Mistake: Forgetting to reverify employees with expiring work authorization. Letting this lapse can result in unauthorized employment and stiff penalties.
Common Errors Leading to Fines
Even minor errors on I-9 forms can rack up significant fines. Below are some of the most frequent slip-ups:
- Missing Signatures
- A simple oversight like forgetting your signature or the employee’s signature can lead to a violation.
- Incorrect Dates
- Writing the wrong hire date or incorrectly noting the document expiration date can be enough to trigger penalties.
- Accepting Expired or Invalid Documents
- Always ensure the documents appear valid and current. This is a crucial responsibility for the employer.
- Late Completion
- Missing the three-business-day window for Section 2 is one of the biggest reasons for fines.
- Lack of Proper Reverification
- If an employee’s work authorization expires, you need to reverify before it lapses.
- Improper Document Retention
- Keeping forms for too long or disposing of them too early can land you in hot water.
Document Retention and Storage Best Practices
Proper storage of I-9 forms is just as crucial as filling them out correctly. Misfiling or losing track of them can make you look unorganized and non-compliant during an ICE inspection.
Retention Timeline
- Minimum Retention Period: You must keep I-9 forms for at least three years from the date of hire or one year after the employee’s termination, whichever is later.
- Separate from Personnel Files: It’s a best practice to store I-9 forms separately from general HR files. This makes audits and internal reviews more efficient.
Storage Methods
- Physical Storage
- If you prefer paper records, keep them in a secure, locked file cabinet.
- Limit access to only authorized HR personnel.
- Digital Storage
- Electronic records are acceptable if they meet certain requirements.
- Ensure they’re encrypted, backed up, and easily retrievable.
Benefits of Organized Storage
- Quick Audits: If ICE comes knocking, you can swiftly pull up all I-9 forms without rummaging through different folders.
- Error Reduction: A dedicated system (physical or digital) makes it less likely you’ll mix up forms or misplace important documents.
📌 Pro Tip: At Lift HCM, we offer onboarding solutions using isolved People Cloud, simplifying I-9 management from start to finish.
The Importance of Internal I-9 Audits
Periodic self-audits can help catch mistakes before they turn into costly official violations. By reviewing your records regularly, you stay ahead of compliance issues and can correct errors promptly.
How to Conduct an Internal I-9 Audit
- Gather All Existing I-9 Forms
- Make sure you have every employee’s form, including former employees still within the retention period.
- Check for Missing or Incorrect Information
- Look for blank fields, incorrect dates, or missing signatures.
- Verify Document Validity
- Confirm that accepted documents were unexpired and matched the employee’s identity.
- Ensure Storage Compliance
- Check that you’re retaining and discarding forms within the legal timelines.
- Reverify Where Necessary
- If an employee’s authorization document was set to expire, confirm that you completed Section 3 on time.
- Fix Mistakes Properly
- If you spot errors, follow USCIS guidelines for making corrections (usually by drawing a single line through the incorrect information, entering the correct data, and initialing and dating the correction).
How ICE Workplace Audits Happen
While this article focuses primarily on I-9 compliance, it’s helpful to understand that ICE (U.S. Immigration and Customs Enforcement) is the agency behind workplace audits. ICE workplace audits can happen unexpectedly, and if your I-9 paperwork isn’t in order, it can cost you big.
ICE Audit Triggers
- Random Selection: ICE can select businesses randomly for compliance checks.
- Employee Complaints: A disgruntled worker might report potential compliance issues.
- Industry Sweeps: Restaurants, construction, and other sectors with high turnover are frequent targets for audits.
ICE Audit Procedure
- Notice of Inspection (NOI)
- You typically have three business days to produce your I-9 documents.
- Document Review
- ICE agents examine all your forms for errors, missing data, and questionable documents.
- Results and Penalties
- If violations are found, you may face fines, or in severe cases, criminal charges.
Protect Your Restaurant with I-9 Compliance
I-9 compliance isn't just another bureaucratic hurdle—it’s a safeguard that protects your restaurant from legal risks and hefty fines. Investing time now in proper procedures and periodic audits can save you from last-minute scrambles and unexpected penalties.
Make I-9 compliance a seamless part of your onboarding process, train managers to stay on top of documentation, and schedule regular audits to ensure everything is in order.
At Lift HCM, we specialize in helping businesses streamline compliance and payroll. Our solutions empower restaurant owners with the tools and knowledge needed to navigate I-9 regulations with confidence—so you can focus on running your restaurant successfully.
Get in touch with Lift HCM today to simplify your I-9 compliance process and protect your business!