Across the country, employers are seeing a sharp rise in Form I-9 audits and ICE enforcement. Colorado, in particular, has become a focal point. Earlier this year, ICE’s Denver field office announced over $8 million in fines against three janitorial companies after audits revealed 143 unauthorized workers—one of the largest I-9 enforcement actions in recent memory.
And Colorado isn’t alone. Employers nationwide—from small businesses to large multistate corporations—are reporting increased contact from Homeland Security Investigations (HSI), Notices of Inspection, and even occasional on-site visits.
What Is an I-9 Audit and Why Does It Happen?
Every U.S. employer must verify the identity and work authorization of each new hire by completing Form I-9 within three business days of the employee’s start date.
An I-9 audit happens when ICE or another agency reviews these forms to ensure compliance. Employers typically receive a Notice of Inspection (NOI) and are given at least three business days to produce I-9 records, payroll lists, and related documentation. Audits can be triggered by random selection, complaints, or industry-wide enforcement initiatives.
Why Employers Need to Pay Attention Now
- Higher penalties: DHS increased civil fines in 2025, meaning even “paperwork errors” can cost thousands per form.
- Broader enforcement: Colorado has been a testing ground, but audits are increasing in Texas, California, New York, Illinois, and Florida as well.
- Multi-state exposure: If your company operates in several states, an audit in one location can prompt a review across all sites.
- Remote work risks: Employers must correctly handle hybrid or out-of-state hires—especially when work locations change.
Seven Steps to Stay I-9 Compliant (Wherever You’re Located)
1. Complete every I-9 on time
Section 1 (employee) must be done on or before day one; Section 2 (employer) within three business days. Store I-9s separately from personnel files for easy access during audits.
2. Verify correctly—without overstepping
Accept any valid combination of documents that appear genuine. Avoid “document discrimination” by not requesting specific IDs.
3. Retain forms properly
Keep each I-9 for three years after hire or one year after termination, whichever is later. Maintain a simple purge schedule for expired retention periods.
4. Conduct regular internal audits
Annual or biannual self-audits (with legal counsel) help catch and fix errors early. Document corrections transparently—never backdate or alter original entries.
5. Train your HR and hiring staff
Ensure anyone completing I-9s understands document review, reverification, and anti-discrimination rules. Training should be refreshed when the form changes.
6. Evaluate E-Verify participation
Not all states require it, but E-Verify can demonstrate good faith compliance. Train staff on handling Tentative Nonconfirmations properly.
7. Prepare a rapid-response plan
Designate a point person for ICE interactions, know the difference between a Notice of Inspection, a subpoena, and a search warrant, and have legal counsel ready to respond quickly.
Penalties for Non-Compliance
Fines for paperwork errors typically range from $288 to $2,861 per form, while knowingly hiring unauthorized workers can cost up to $5,724 per worker for first offenses—and far more for repeats.
In extreme cases, employers and managers can face criminal prosecution, personal fines, or even jail time. Beyond that, companies risk public exposure, loss of contracts, and serious damage to employee trust and reputation.
We Help Employers Across Colorado — and Across the U.S.
Whether you’ve received an NOI, need training for your HR team, or just want peace of mind, contact us today. We’ll help you safeguard your company, your employees, and your reputation—wherever you do business.
