I-9 Verification: Balancing Physical and Remote Document Checks

Navigating I-9 verification requirements is a crucial challenge for employers adapting to the demands of today’s workforce.

Whether managing remote teams across state lines or running a traditional office, understanding how to verify employment eligibility is essential.

With Immigration and Customs Enforcement (ICE) ramping up enforcement and penalties for non-compliance growing steep, staying compliant is more important than ever. Let’s dive into key strategies to streamline your processes and ensure compliance.

Key Takeaways

• In-Person Document Inspection: Original documents must be physically inspected in person within three business days of hire, unless using remote verification with E-Verify enrollment and live video sessions.
• Remote Verification Requirements: Remote verification requires high-quality digital copies of documents submitted before the live video session. Employers must also retain proper documentation for compliance.
• Authorized Representatives: Employers can assign authorized representatives to conduct physical document inspections if in-person verification at the primary workplace isn’t feasible.
• Post-COVID Policy Update: As of August 2023, physical document inspections are mandatory, ending the temporary COVID-era flexibilities for remote verification.
• Secure Storage Systems: Employers must use secure, encrypted digital storage systems for I-9 documentation, regardless of whether verification is in-person or remote.

Understanding I-9 Verification Requirements

Employers are required by the Immigration Reform and Control Act of 1986 to verify their employees’ identity and authorization to work in the United States using Form I-9. Compliance involves strict adherence to document examination, form completion, and record retention. Here’s what you need to know:

I-9 Verification Checklist:

• Document Verification:
  • Examine original documents that:
    • Prove both identity and work authorization (List A)
      OR
    • Combine one document from List B (identity) with one from List C (work authorization).
  • Ensure documents appear genuine and relate to the person presenting them.
• Timing Requirements:
  • Complete Section 2 of Form I-9 within three business days of the employee’s first day of work.
• Retention Requirements:
  • Retain Form I-9 for three years from the hire date or one year after employment ends, whichever is later.
• Remote Verification (E-Verify):
  • Employers in good standing with E-Verify can use live video interactions for remote document verification as of August 2023.
  • Digital copies of documents must be submitted before the video session, and proper documentation must be retained for compliance.
• E-Verify Requirements:
  • Federal contractors and employers in certain states must use E-Verify, which cross-checks employee information with government databases.

Non-Compliance Risks

Failure to meet I-9 requirements can lead to civil fines ranging from $252 to $2,507 per violation. Additionally, employers may face penalties for late IRS payroll tax payments, adding another layer of risk for non-compliance.

By adhering to these guidelines, employers can minimize compliance risks, avoid fines, and ensure a legally authorized workforce.

 

Physical Document Inspection Best Practices

As of August 1, 2023, all employers are required to resume physical inspections, ensuring proper documentation for all new hires.

To comply with I-9 physical document inspection requirements, employers must carefully follow specific steps and meet strict timelines. Here’s how to ensure compliance:

Key Requirements and Best Practices:

1. Timely Inspections:
   • Complete the physical inspection within three business days of the employee’s start date.
   • For COVID-era remote verifications, physical inspections must have been completed by August 30, 2023.
2. Document Examination:
   • Inspect original documents in the employee’s presence—photocopies and faxes are not acceptable.
   • Record “documents physically examined” along with the inspection date in Section 2 of Form I-9.
3. Authorized Representatives:
   • Employers may designate representatives such as household members, notaries, or third-party agencies.
   • Authorized representatives are responsible for physically inspecting documents and signing or initialing Form I-9.
4. Handling Previously Remote-Inspected Documents:
   • If remote-inspected documents are unavailable for physical review, you can:
     • Complete a new Section 2 on a new Form I-9
       OR
     • Record the new information in the Additional Information field of the existing form.
5. Document Retention:
   • Maintain clear, accurate copies of all submitted documents for compliance purposes.

 

Remote Document Check Procedures

The remote I-9 verification process has evolved significantly, offering alternative procedures for employers enrolled in E-Verify. These changes streamline verification while maintaining compliance, but employers must adhere to strict guidelines to avoid penalties.

Steps for Remote Verification:

1. Document Collection:
   • Collect clear, legible copies (front and back) of the employee’s documents before starting the verification process.
2. Live Video Verification:
   • Schedule and conduct a live video session to verify the authenticity of the documents and ensure they match the digital copies.
3. Form I-9 Annotation:
   • Annotate Form I-9 with the phrase “alternative procedure”, along with the date and your initials.
4. E-Verify Case Creation:
   • Create an E-Verify case for each employee, except during reverification.

Key Requirements and Considerations:

• E-Verify Enrollment:
  Employers must be actively enrolled and in good standing with E-Verify to use remote verification procedures.
• Timing:
  Complete Form I-9 within three business days of the employee’s start date to ensure compliance.
• COVID-19 Remote Verifications:
  For remote verifications conducted under COVID-19 flexibilities, employers had until August 30, 2023, to:
  • Physically inspect those documents
    OR
  • Transition to the new alternative procedure.
• Authorized Representatives:
  Employers may designate representatives to complete the verification process if necessary.
• Record-Keeping:
  Thoroughly document your use of remote procedures, and maintain digital copies of all verification materials in your records.

Compliance and Enforcement:

Noncompliance penalties range from $252 to $2,507 per violation, and increased staffing at DHS signals heightened enforcement. By following these structured procedures and maintaining accurate records, employers can ensure compliance with evolving I-9 requirements.

 

E-Verify Enrollment and Compliance

Enrolling in E-Verify requires a structured process to ensure your company meets all requirements and maintains ongoing compliance. Here’s how to get started and stay on track:

Steps for E-Verify Enrollment:

1. Choose Your Access Method:
   Visit the E-Verify enrollment website and select the appropriate role for your organization:
   • Employer
   • E-Verify Employer Agent
   • Corporate Administrator
   • Web Services
2. Gather Necessary Information:
   Before starting the enrollment process, collect:
   • Employer Identification Number (EIN)
   • North American Industry Classification System (NAICS) code
   • Details for all hiring sites
   • Contact information for the person who will electronically sign the Memorandum of Understanding (MOU).
3. Sign the Memorandum of Understanding (MOU):
   Designate someone to sign this agreement, which outlines your responsibilities and obligations as a participating employer.

Compliance Requirements:

• Program Training:
  Program administrators must complete the E-Verify tutorial and pass a knowledge test to ensure proper usage.
• Verification Timing:
  Employers must verify I-9 documentation within three business days of an employee’s start date.
• Fair Practices:
  Adhere to non-discriminatory practices during the verification process, ensuring fair treatment for all employees.
• Remote Document Verification:
  For remote verifications, conduct live video sessions and retain clear, legible copies of all documents.
• Accurate Payroll Processing:
  Ensure payroll processing is accurate to minimize errors that could affect E-Verify submissions and reduce the risk of penalties.

By following these steps and maintaining compliance, your company can utilize E-Verify effectively while upholding legal and ethical standards.

Document Retention Guidelines

Proper I-9 document retention is essential for compliance with federal regulations. Employers must adhere to specific timing, format, and accessibility requirements to avoid penalties.

Retention Requirements:

• Retain I-9 forms for:
  • Three years after the hire date, or
  • One year after employment ends, whichever is later.
• Many employers simplify by keeping forms for three years post-termination.

Storage Options:

Employers can choose from several secure storage methods:

1. Physical Storage: Secure on-site or off-site locations.
2. Digital Storage: Ensure proper encryption and secure access.
3. Microfilm or Microfiche: Maintain high-quality, readable copies.
4. Combined Approach: Use a mix of formats to meet organizational needs.

Key Compliance Practices:

• Centralized Storage:
  Store I-9 forms separately from personnel files in a dedicated, centralized location.
• Regular Audits:
  Conduct periodic self-audits to identify and correct errors before they become compliance issues.
• Up-to-Date Forms:
  Use the latest USCIS-approved Form I-9 version, even if it shows a printed expiration date.
• Staff Training:
  Train HR staff on proper I-9 documentation and retention procedures to minimize errors.
• Retention and Disposal Policies:
  Establish clear policies for retaining and securely disposing of I-9 forms after the required retention period.

Federal Audits and Accessibility:

• Be prepared to produce I-9 forms within three business days of a federal audit request.
• Ensure that all forms remain legible and accessible throughout the retention period, regardless of format.

Streamlining with Technology:

Integrating digital solutions into your HR systems can simplify recordkeeping and improve compliance oversight. Assign dedicated personnel to monitor and maintain compliance with federal guidelines, ensuring consistent and reliable documentation practices. You may also choose to hire help in this department. If you’re considering doing so, Valor Payroll Solutions is happy to help! You can contact us below.

 

Remote Verification Eligibility Standards

Employers implementing remote I-9 verification must meet specific eligibility requirements and adhere to established protocols to ensure compliance with U.S. immigration regulations.

Eligibility Requirements:

1. E-Verify Enrollment:
   • All hiring sites must be enrolled in E-Verify.
   • Employers must remain in good standing with the program.
2. Training Completion:
   • Employers and authorized representatives must complete required E-Verify training, including components on fraud awareness and anti-discrimination.
3. Employee Rights:
   • Employers must offer in-person document examination if requested by the employee.

Remote Verification Process:

1. Live Video Interaction:
   • Conduct document inspections via live video to verify authenticity and ensure alignment with submitted copies.
2. E-Verify Cases:
   • Create an E-Verify case for each new hire within three business days of their start date.
3. Document Retention:
   • Maintain clear, legible copies of all inspected documents for compliance.
4. Physical Inspection for COVID-19 Verifications:
   • For documents verified remotely during COVID-19 flexibilities, complete physical inspections by August 30, 2023.

Compliance Best Practices:

• Secure Document Handling:
  • Implement secure protocols for managing sensitive employee documents.
• Policy Updates:
  • Revise employee handbooks to include remote verification procedures and compliance guidelines.
• Regular Audits:
  • Conduct periodic audits of your remote verification process to identify and resolve potential issues.
• Robust Retention System:
  • Create and maintain an efficient system for storing and retrieving verification documents.
• HR Training:
  • Train your HR team on the latest remote verification standards and compliance requirements.

Important Note:

The permanent remote verification option has been available since July 25, 2023. Employers should also ensure compliance with federal tax regulations, as errors in wage withholding can result in additional penalties. By adhering to these standards and implementing best practices, employers can confidently manage remote verification while minimizing compliance risks.

 

Frequently Asked Questions

What Happens if an Employee’s Documents Expire During Their Employment?

If your employee’s documents expire during employment, you don’t need to reverify U.S. passports, passport cards, or Permanent Resident Cards.

However, you must reverify Employment Authorization Documents (EADs) and other temporary work authorization documents before their expiration date.

You’ll need to complete Section 3 of Form I-9 with the new document information.

Your employee can present any acceptable List A or C document.

Can Employers Accept Digital Signatures on Form I-9?

Like a digital handshake, electronic signatures are fully acceptable on Form I-9.

You can use compliant electronic signature systems, such as DocuSign, as long as they meet USCIS requirements for integrity and security.

Your system must include reasonable controls, audit trails, and reliable storage capabilities.

You’ll need to maintain proper documentation of your electronic signature processes and guarantee they’re integrated with your E-Verify procedures.

How Should Employers Handle Name Changes After I-9 Completion?

While you’re not required to update Form I-9 for employee name changes, it’s best practice to record them.

Document the new name in Section 3 or Supplement B, and sign and date the entry. You may request legal documentation of the name change, though it’s not mandatory.

If you’re using E-Verify, encourage employees to update their information with the SSA to prevent mismatches.

Federal contractors must complete new I-9s for name changes.

What if an Employee Refuses to Participate in Remote Verification?

Like a closed door that won’t budge, an employee’s refusal to participate in remote verification creates a serious compliance issue.

You’ll need to inform them that it’s a mandatory requirement for continued employment.

If they still refuse, you must notify them in writing that failure to complete I-9 verification will result in termination.

You can’t legally continue employing someone who hasn’t completed proper I-9 verification requirements.

Can Temporary Staffing Agencies Use Different I-9 Procedures Than Direct Employers?

Yes, staffing agencies can use different I-9 procedures than direct employers in specific ways.

You’ll find that staffing agencies can complete I-9s before assigning work, while direct employers must wait until after a job offer.

Additionally, you’re allowed to choose between using the assignment date or pool entry date as the start date.

However, you must maintain consistency in whichever approach you select to avoid discrimination claims.