The landscape of U.S. employment verification is undergoing significant change with recent actions by the Trump administration intensifying scrutiny on U.S. employment verification processes.
In January 2025, President Trump issued Executive Order 14159, titled "Protecting The American People Against Invasion," which directs the Department of Homeland Security to enforce immigration laws more stringently, including ensuring compliance with alien registration requirements.
In November 2023, updates to Form I-9 and E-Verify regulations including a new Form I-9 and new remote verification options, signal a stricter compliance environment.
At the same time, penalties for Form I-9 violations have surged (now $288–$2,861 per form error) and Immigration and Customs Enforcement (ICE) is ramping up inspections and enforcement.
This convergence of factors puts large employers – from major retailers and warehouses to big agriculture and industrial factories – under intense scrutiny.
Enterprise-scale employers with distributed hiring practices face unique risks, as manual I-9 processes and remote onboarding challenges make compliance harder to manage. We’ll examine the current state of I-9 compliance, why changes were introduced, the high cost of non-compliance, and how technology (such as Lightico’s Identity Verification solution as part of the Digital Completion Platform) can mitigate risk.
Form I-9 Overhaul and New Verification Rules
A New Form I-9 is markedly streamlined and user-friendly as compared to the old form.
For example, the instruction guide that comes with the form was shortened from 15 pages to just 8, with clearer directions that are easier to follow.
Some parts of the old form that only applied in certain situations, like when someone helps an employee fill out the form or when a worker is rehired later, have been moved to their own separate pages. These are called Supplements A and B. Most people won’t need to use them, but they’re available when needed, which helps keep the main form clean and simple.
The government also updated the words used on the form to be more modern and respectful. For example, the term “alien authorized to work” was changed to “noncitizen authorized to work.” This change helps avoid confusion and better reflects today’s standards.
Finally, the form is now mobile-friendly. It can be filled out on phones or tablets using apps like Adobe Acrobat, which is helpful for people working remotely or on the go. There’s also a new checkbox that employers can use to show if they verified a worker’s documents remotely, but this option is only available to companies that are signed up with E-Verify.
Why the Changes?
The Form I-9 overhaul was motivated by efficiency and the changing nature of work. With record levels of remote hiring and distributed teams since 2020, the government sought to simplify compliance and address practical challenges that employers faced during the pandemic.
This temporary policy led to a backlog of physical verifications – employers now had to go back and inspect identity documents in person for any I-9s completed remotely during that period, by an Aug. 30, 2023 deadline.
Such a backlog was daunting, especially for large employers who onboarded hundreds or thousands of staff remotely. The new form’s simplifications help reduce administrative burden and errors, while new remote verification rules were introduced to modernize the process going forward.
Fraud prevention was another driver. Authorities have raised concerns about increasingly sophisticated fake IDs and work authorization documents being used in I-9 verification.
During the pandemic’s remote I-9 phase, employers had less ability to detect forged documents via video or email. By updating the form and allowing certain digital document checks, regulators aim to balance security with flexibility. The shorter form and clearer instructions also help prevent mistakes that could otherwise expose employers to penalties (e.g. missing fields or mis-classifying document types).
Remote Verification & E-Verify: Alongside the new form, the Department of Homeland Security (DHS) implemented a permanent remote examination option for eligible employers as of August 1, 2023. Under a rule announced in July 2023, employers enrolled in E-Verify (and in good standing) may choose an “alternative procedure” to verify I-9 documents without physical inspection.
This procedure, detailed in the Federal Register, lets an employer review Section 2 documents via live video or electronic means, provided they follow specific steps (e.g. examining copies of the documents, conducting a live video interaction with the employee, and retaining copies of the documents).
Key Takeaway: The regulatory updates of 2023 mark a push toward a more digital, streamlined I-9 process. Employers must use the latest Form I-9 (or face penalties for using an outdated form) and should understand the new remote verification option. These changes were introduced to adapt to remote hiring trends, reduce an accumulated verification backlog, and counter document fraud risks in a more technologically sophisticated way.
With these new tools, however, comes greater scrutiny from authorities who are coupling these employer conveniences with tougher enforcement to ensure compliance.
Escalating Fines and Heightened Enforcement
Government regulators have underscored that Form I-9 compliance is not optional, and the consequences of failure have become increasingly severe.
In the past few years, civil fines for I-9 violations have jumped considerably, and ICE has been more aggressive in auditing employers.
Large organizations are especially on notice, as their scale of hiring can turn minor mistakes into massive liabilities. Below we outline the current penalty framework and enforcement trends:
Higher Penalties per Violation
DHS adjusts I-9 fines annually for inflation, and recent increases have put penalties at their highest levels ever.
As of early 2025, paperwork violations (mistakes or omissions on the I-9 form for each employee) carry fines ranging from $288 up to $2,861 per violation. This means each individual I-9 that is missing, incomplete, or has substantive errors (such as an unsigned Section 2 or an unchecked attestation box) can cost up to nearly $3,000.
For a large employer with hundreds of non-compliant forms, the fines multiply quickly. For example, 100 faulty I-9s could theoretically incur up to ~$300,000 in fines.
The stakes are even higher for knowingly hiring or continuing to employ unauthorized workers (an offense under immigration law). Fines for that violation start at $716 to $5,724 per worker for a first offense, escalating to $8,586–$28,619 per worker for third or subsequent offenses.
These fines have grown substantially from just a few years ago. (By comparison, in 2016 the max paperwork fine was around $1,100; now it’s nearly triple.) The message to employers is clear: even “paperwork” non-compliance will hurt the bottom line. A recent alert noted that the average penalty per I-9 (across all violations) now runs about $1,862
Aggressive ICE Audits and Inspections
ICE’s Homeland Security Investigations (HSI) unit has ramped up workplace enforcement efforts, returning to (and even exceeding) pre-pandemic levels. An I-9 audit typically begins with a Notice of Inspection (NOI) to the employer, after which ICE agents scrutinize every Form I-9 on file for compliance.
The trend line for 2023–2025 is clearly upward given the current focus on compliance. ICE has explicitly stated that if employers are not in compliance, an inspection will likely result in fines and could even lead to debarment from federal contracts.
Targeting High-Risk Industries
No employer is “too big” or too prominent to avoid scrutiny. In fact, enterprise-scale and labor-intensive industries are often prime audit targets due to the likelihood of finding unauthorized workers or systemic I-9 lapses.
Major retailers and warehouse operators (for instance, Amazon’s vast fulfillment centers or big-box chains) hire tens of thousands of hourly workers annually, many in high-turnover positions – an environment ripe for I-9 mistakes if not tightly managed.
Hospitality and food service, with many seasonal and immigrant workers, have similarly been audited heavily. The agricultural and food processing sectors are another focus: these industries have historically attracted unauthorized labor due to labor shortages, and ICE has not shied away from enforcement there.
Enforcement Focus on Employers
For Fortune 500 employers, financial liability is only one concern – the reputational damage of an ICE investigation can be lasting, and the operational disruption (losing a chunk of your workforce overnight) can be devastating. Major retailers and farms have appeared in unwanted headlines for hiring undocumented workers or for sloppy I-9 practices, prompting other companies in those sectors to tighten up compliance proactively.
Bottom line: The cost of I-9 non-compliance has never been higher. Fines per form can reach several thousand dollars, total fines per audit have hit eight figures, and company executives may even face criminal charges in severe cases.
ICE is actively knocking on doors across industries, with a particular focus on large employers in sectors known for employing vulnerable workers. In this climate, enterprise employers must view I-9 compliance as a serious legal and financial risk on par with data privacy or safety violations and not merely a routine HR paperwork task.
Challenges for Large and Distributed Employers: The Pitfalls of Manual or Incomplete I-9 Processes
For any employer, managing Form I-9 comes with challenges, but for enterprise-scale employers these challenges are amplified.
Organizations that are hiring at scale, in multiple locations or remotely, and relying on manual processes often find it difficult to maintain consistent compliance. Key pain points include high error rates, decentralized documentation, and complications of remote hiring.
Let’s break down the major issues:
Human Error and Complexity
The I-9 may seem straightforward, but in practice it’s easy to make mistakes – especially when handling hundreds or thousands of forms a year. Each new hire must complete Section 1 by day 1, and the employer must complete Section 2 by day 3 of hire, examining documents and filling out multiple fields correctly. For a busy retail store manager or farm supervisor onboarding many workers, details can slip through the cracks (missing signatures, expiration dates not noted, etc.). A stunning 76% of paper Form I-9s have at least one error according to compliance audits.
In other words, three out of four paper I-9 forms across employers are technically non-compliant.
Additionally, Large employers often discover during an internal or external audit that they are missing entire I-9 forms for certain employees (particularly if onboarding was rushed or records management is poor). Each missing I-9 is treated as a serious substantive violation (essentially “failure to present an I-9” is as bad as not doing one at all).
Decentralized and Distributed Hiring
Enterprise employers frequently hire across dozens or hundreds of worksites (stores, warehouses, plants, offices) spread geographically. Often, responsibility for I-9 completion is delegated to local managers or HR reps at each site.
This decentralization leads to inconsistent practices. One location might be diligent, while another routinely overlooks reverification or doesn’t send copies of documents to corporate.
Without a centralized system, corporate compliance officers have limited visibility until it’s too late. Furthermore, maintaining paper I-9 files at multiple sites raises risk of loss and makes it extremely difficult to respond to an ICE audit within the required 3 days by gathering all forms.
Remote hiring adds another layer of complexity when hiring a worker who isn’t near an HR office, the employer must either designate an authorized representative to act on its behalf to do the in-person document check, or now use the new E-Verify remote procedure if eligible.
Relying on third-party notaries or representatives can lead to errors (if they’re not properly trained on I-9 rules) or delays. During the pandemic, many companies hired employees all over the country and postponed physical verification for years due to the flexibilities; now, catching up on those verifications or switching to the new procedure is a massive project in itself.
Manual Process Inefficiencies
A paper-and-manual or semi digital workflow is slow and prone to oversight. It relies on employees to fill out forms correctly and produce original documents, and on managers to physically meet with each hire by day 3, photocopy documents (if the company’s policy is to keep copies), and store everything securely.
In a high-volume hiring scenario (think of a national retail chain onboarding thousands of seasonal workers in a short window), the manual process can bottleneck or break down. Forms might sit incomplete because a manager didn’t have time to finish Section 2 within three days, or an employee forgot to bring ID on their first day and wasn’t followed up with.
Follow-ups for missing information often fall through the cracks without an automated reminder system. The result is a trail of compliance gaps that an ICE auditor can later exploit.
Reverification and Retention Management
Large companies also have to manage reverification for certain employees (e.g. those on work visas whose employment authorization has expiration dates). Manually tracking when each employee’s work authorization expires is challenging at scale – failing to reverify on time is a substantive violation.
Likewise, retention rules (keep I-9 for at least 3 years or 1 year after termination, whichever is longer) mean big employers have tens of thousands of forms in storage at any time, some of which can be purged on a rolling basis.
Without a centralized tracking system, companies either err on the side of keeping everything (which can be unwieldy and still must be produced on audit) or risk prematurely destroying a form that should have been retained. Both scenarios pose risks.
To illustrate the difference between legacy processes and a modern automated approach, consider the following comparison:
As the table above suggests, manual processes simply don’t scale for large, distributed organizations under intense compliance demands.
In fact, they actively contribute to risk: a fragmented, paper-based or even fragmented E-Verify approach virtually guarantees a high error rate and a difficult defense in the event of an audit.
The vulnerability of enterprise employers lies not only in their attractiveness as targets for enforcement, but also in the sheer complexity of managing compliance across a large operation. A retail chain with 1,000 U.S. stores, for example, might have 50,000 active employees and 100,000+ I-9 forms on file (including terminated employees within retention period).
Keeping compliant with just emailed forms, spreadsheets, paper forms, and individual store managers is a recipe for mistakes.
It’s noteworthy that even employers who adopted early electronic I-9 systems must be cautious. The government has warned that using an electronic I-9 software is not a safe harbor by itself. Some employers were fined for assuming their software made them compliant while it allowed errors (or they failed to properly use it).
The clear conclusion is that robust processes and tools are needed to manage I-9 at scale. Many large employers are turning to automation and digital solutions to address these challenges.
How to Reduce I-9 and E-Verify Compliance Risk
In response to the challenges above, forward-thinking employers are deploying technology and automation to fortify their I-9 compliance.
Modern hiring and I-9 management systems and digital workflow tools (such as Lightico’s platform) are designed to eliminate paperwork errors, ensure consistency, and create a verifiable compliance trail.
These solutions are especially powerful for large and remote-heavy employers, as they centralize and standardize the process across the organization. Here’s how technology is transforming I-9 compliance and lowering risk:
Real-Time Digital Document Capture
Technology and software, like Lightico, enables real-time capture of documents and information via mobile devices. For example, a new hire can upload a picture of their ID and work authorization documents from their smartphone, as well as fill out a mobile-optimized I-9 form and provide an e-signature in the same session.
This all-in-one digital session means the employee can complete the entire I-9 remotely, and HR receives the information instantly.
The benefit is twofold: speed (onboarding isn’t slowed waiting for paperwork), and completeness (the platform won’t let the process finish if required fields or documents are missing). In industries like retail or gig-work where hiring needs to be nearly on-demand, this real-time onboarding is invaluable.
Error Prevention and Smart Validation
Lightico;’s I-9 solutions embed compliance logic into the form and workflow process. They can auto-validate entries, for instance, ensuring a Social Security number has 9 digits and the copy matches the form, or that today’s date isn’t entered in a field meant for the employee’s birth date.
They prompt the user if something is omitted (“Section 1: immigration status not selected”) so that errors are corrected upfront before submission.
This dramatically lowers the chance of a “paperwork violation.” Many systems also guide the employer on acceptable document combinations (so an HR rep doesn’t, for example, improperly accept two List B documents instead of a List B and C).
Some even have drop-down lists for document types tied to the status selected, reducing confusion. By making the form “smart,” these tools prevent the small mistakes that lead to big fines.
Preventing violations in the first place via error-proofing is clearly the safer course.
Centralized Compliance Control
With a digital I-9 system, all I-9s funnel into one central database, typically managed by corporate HR or compliance. This centralization means that an organization’s leadership has full visibility into I-9 completion status across every location. Compliance officers can run reports to see, for instance, if any new hire has an incomplete I-9 or if any Section 2 is still pending beyond the 3-day window – and then take immediate action.
Audit trails are automatically created, logging the time and date of each action (form completed, documents viewed, employee signed, manager signed, E-Verify case submitted, etc.). In the event of an ICE audit, these records demonstrate good-faith compliance efforts and make it easier to respond. Instead of scrambling to collect paper from 50 offices, the employer can quickly pull digital copies of all I-9s and even show a logged history of compliance checks.
This not only saves enormous time, it also impresses auditors that the company is organized and proactive. Secure, centralized storage also means forms won’t be lost – every form is backed up and retained for the proper period, then can be systematically purged when allowed.
Integration with E-Verify and Government Systems
Lightico’s automation tools can integrate 3rd party systems and continue downstream direclty with DHS’s E-Verify system, further streamlining compliance.
When a new hire’s information is collected, Lightico’s workflow automation automatically transmit the necessary data to an E-Verify system and alert HR if any action is needed (like a Tentative Nonconfirmation).
This eliminates the need for HR to manually re-enter data into the E-Verify website, reducing typographical errors and ensuring every required hire is actually verified. Given the new remote verification rule ties into E-Verify, having an integrated solution means the remote document check can be done within the same workflow, and the Form I-9 is properly notated (checking the remote exam box) with all required steps documented.
Optionally, Lightico’s Case Manager can walk an employer through the new alternative procedure so they don’t inadvertently miss a step (e.g., forgetting to keep a copy of the documents, which is required if using remote exam).
Integration also helps with reverification – if an employee’s work authorization was initially verified through E-Verify, a good system can prompt re-running E-Verify when updating an I-9 for renewal.
Audit Readiness and Reporting
Lightico includes reporting dashboards and audit support features. For example, an admin or Authorized compliance or HR employee can download a PDF of a Form I-9 at any time that is an exact mirror of the official form with all fields populated, along with copies of the documents (if stored) and an attestation of who signed it electronically.
Lightico’s IDP solution can also aid in automatically flagging any I-9 that has a potential issue (say, a missing List A/B/C document scan if company policy is to keep scans, or a Section 1 completed after the start date) so that compliance teams can fix it long before any government audit.
By catching and correcting errors internally (and documenting those corrections), companies can mitigate penalties – ICE and OCAHO look more leniently on violations that were identified and fixed in good faith prior to an official inspection.
Essentially, Lightico can help enable continuous self-auditing, which is a recommended best practice.
Mobile and User-Friendly Experience
From an operational standpoint, using technology like Lightico makes the process easier for employees and managers alike.
New hires can complete forms on their own mobile phones without needing to navigate complex paperwork. This can reduce onboarding drop-off and confusion, especially for employees who might be less familiar with the form. Managers benefit by not having to become I-9 experts; the system guides them. Lightico’s platform, for instance, is mobile-first and intuitive, designed so that even non-technical users can follow the steps to submit needed info.
This means better compliance simply because the process is less burdensome and less prone to human forgetfulness. In an executive context, improving the efficiency of hiring (faster time-to-hire, less managerial time spent on forms) is a productivity win in addition to a compliance win.
Fraud Mitigation
As noted, Lightico’s ID verification solution incorporates tools to fight document fraud. Using Intelligent Document Processing and machine-learning algorithms to analyze IDs checking things like fonts, holograms, photo matching, and cross-referencing databases to validate an ID or supporting documents authenticity can be done within seconds.
Lightico’s ID verification can also prompt an applicant to take a live selfie to ensure the person is who they claim (preventing cases of borrowed or stolen identities being used for employment).
By catching fake documents up front, the technology not only helps the employer avoid later penalties, but also deters unauthorized individuals from attempting to gain employment, thereby strengthening the employer’s legal workforce. In an era of increasing identity fraud, such capabilities are crucial.
The ROI is clear. Avoiding even one moderate fine can pay for a compliance system many times over. And beyond fines, maintaining compliance means avoiding the disruption of an ICE investigation or the reputational harm that comes with violations.
Eliminate IT Bottlenecks
Lightico ensures consistency in following the latest regulations with out IT bottlenecks. For instance, when the new Form I-9 came out in Aug 2023, simply adding the new form and remapping in Lightico would only take a few work hours so that all forms being completed were using the new version, eliminating the risk an HR person accidentally uses an outdated form.
Any chance in corporate policy or language used in hiring processes can be executed by admins or authorized business users right in the Lightico platform.
In particular, Lightico’s digital completion platform offers a compelling example of how technology can meet compliance needs without sacrificing efficiency. As described above, Lightico enables secure, real-time collection of I-9 forms and documents via mobile.
It keeps the process user-friendly while embedding compliance checks. A platform like this showcases that companies “needn’t be forced to choose between compliance and efficiency,” as Lightico’s team notes – with the right software in place, you achieve both.
The platform’s ability to prevent fraud, ensure all steps are done correctly, and retain an audit trail addresses exactly the risks that worry compliance officers.
By adopting such technology, enterprises can substantially reduce the risk of costly I-9 mistakes, even as they continue to hire at scale and leverage remote talent pools.
Here’s how the I-9 and new employee onboarding process works with Lightico’s platform
- Secure Link to Upload: The employee receives a secure link (often by text or email) that opens a protected mobile collaboration session . This link does not require any app download – it opens in a mobile browser for ease of use.
- Guided Document Collection: The HR agent (or automated workflow) requests the specific I-9 List A or List B/List C documents needed . The employee is guided to snap a photo of (or select an image file for) each required document (e.g., a passport, or driver’s license and Social Security card). Lightico’s interface ensures the employee provides all necessary docs before moving on.
- Real-Time Upload & Verification: As soon as the employee submits the images, Lightico’s advanced document ID verification and AI IDP kicks in. The platform performs a series of checks on the ID images within seconds :
- Face detection and photo matching: If the employee also takes a real-time selfie, Lightico compares the selfie to the photo on the ID to confirm they match the same person . This guards against an impostor using someone else’s documents.
- Document authenticity checks: The system automatically analyzes security features on the ID photo (holograms, fonts, layout) and cross-checks the data against databases of thousands of IDs worldwide . It can detect forged or tampered documents by looking at inconsistencies (e.g., an edited name or photo).
- Data integrity and consistency: If two documents are provided (say a license and a Social Security card), the software compares the personal data (name, DOB, etc.) across them to ensure they are consistent . It also checks that document images are clear and unaltered (color space analysis, edge detection for proper cropping, etc.).
- Instant Feedback: If a document image is blurry or fails a check, Lightico can prompt the user to re-capture it. If everything looks valid, the system flags the documents as verified. All of this happens in real-time, usually within the same session.
Using these identity verification features, Lightico helps ensure that fraudulent I-9 documents are caught early.
This is critical because sophisticated fake IDs and “synthetic identities” have become more common, and employers face steep fines or even criminal penalties if they unknowingly accept fake work authorization documents .
Companies shouldn’t have to choose between compliance and efficiency – with the right digital verification software, they can achieve both.
In practice, this means HR can verify a remote hire’s documents with confidence. Even if not physically present, the combination of photo ID + selfie matching provides assurance that “the person is who they claim to be,” satisfying the spirit of the in-person exam requirement .
Compliance as a Priority in the New Era
The increased scrutiny on Form I-9 and worksite compliance in 2025 and beyond is a wake-up call for large employers.
ICE’s ramped-up audits and steep penalties make the cost of failure higher than ever. For executives (Compliance Officers, General Counsels, HR VPs, COOs), the mandate is clear: I-9 compliance must be treated as a top-tier risk management issue. This means staying current on regulatory changes (like the new form and E-Verify rules), training HR teams and managers on proper procedures, and crucially, investing in the right processes and technology to manage compliance at scale.
