When a new employee joins your company, it’s vital you and the employee complete an I-9 form and that you keep it on file to avoid penalties.
Form I-9, Employment Eligibility Verification, is the federal form employers and employees must complete for every new hire to verify the employee's identity and confirm they're authorized to work in the United States.
What appears to be a simple two-page form can be laden with opportunities for small mistakes and confusion. Read on to understand how to avoid common I-9 pitfalls and stay compliant.
Before we dive into these common mistakes, let’s talk about the three sections of the I-9. When an employee joins your company, they complete Section 1, which is their attestation of their own identity and work authorization status. Make sure that the employee verifies the information and signs the form.
Then, the baton is passed to the employer (or their authorized representative), who completes Section 2—the employer's attestation that they examined the employee's documents and they appear genuine—and in some circumstances Section 3. Section 2, which includes details about the employment eligibility of the employee, must be completed by the employee’s third day of employment.
Section 3 applies when you need to reverify an employee's expiring work authorization, rehire someone within 3 years of their original I-9, or record a legal name change. For a comprehensive overview, visit this guide to everything you need to know about the I-9.
Now, onto the most common I-9 mistakes that can potentially cause havoc for your business—and important advice on how to avoid them.
Mistake 1: Missing due dates for I-9 forms
The I-9 form has strict due dates for the various sections, and missing the due date could cost an employer up to $2,861 per form, according to the U.S. Immigration and Customs Enforcement (ICE). Under 2026 ICE guidance, many error types that used to be correctable within a 10-day cure period are now classified as substantive violations subject to immediate fines—so it's more important than ever to get these forms right the first time.
The employee must complete Section 1 before close of business (COB) on the first day of employment. The employer must fill out Section 2 before COB on the third day after the employee's first day of employment. For example, if the employee's first day is Tuesday, Section 1 must be completed Tuesday and Section 2 must be completed before COB Friday. If the employer operates over the weekend, those days will be counted as business days.
Note: Employers enrolled in E-Verify in good standing may use a permanent DHS alternative procedure to examine an employee's documents remotely instead of in person. This requires a live video interaction with the employee while reviewing their documents—pre-recorded video, email, fax, or photo submissions don't qualify. Employers using this procedure must also check the box in the Additional Information field of Section 2 to indicate they did so; failing to check that box is itself considered a substantive, immediately finable violation under current ICE guidance.
Mistake 2: Neglecting to enter correct List A, B, or C documents on the I-9
Employees must provide List A documents or B and C documents to verify their identity and authorization to work. Often the wrong documents are used for completing the I-9, whether it’s only one of the List B or C documents present or the entirely wrong documents. Make sure the right document details are entered.
List A documents show an employee’s identity and employment authorization. They include:
U.S. passport or U.S. passport card
Permanent resident card (Form I-551)
Employment authorization document card (Form I-766)
Foreign passport with Form I-94
Passport from the Federated States of Micronesia (FSM) or the Republic of the Marshall Islands (RMI) with Form I-94
Foreign passport with a Form I-551 stamp.
List B documents show an employee’s identity and must be presented along with a List C document, which shows employment authorization. List B documents include:
Driver’s license; government-issued ID card
School ID with photo
Voter registration card
U.S. military card
Military dependent's ID card
U.S. Coast Guard Merchant Mariner Card
Native American tribal document
Driver’s license issued by a Canadian government authority
For employees under the age of 18, these documents are also accepted: school report card; doctor or hospital record; and day care or nursery school record.
List C documents include:
U.S. Social Security card that is unrestricted
Native American tribal document
DHS-issued employment authorization documents
Consular report of birth abroad (Form FS-240)
Certification of birth abroad issued by the U.S. (Form FS-545)
Certification of report of birth issued by the U.S. (Form DS-1350)
Original or certified copy of a birth certificate
U.S. citizen ID card (Form I-197)
Identification card for use of resident citizen in the U.S. (Form I-179).
Mistake 3: Requesting to see specific documents from the employee
When it comes to Section 1, the employer’s role is to ensure it’s complete. Do not ask for specific supporting documents within the lists to verify the information in Section 1. For example, if an employee presents a Permanent Resident card as the List A document, do not ask to see a U.S. Passport. If the document is considered sufficient by U.S. Citizenship and Immigration Services, then it should be considered sufficient by you, the employer.
Requesting to see a specific document could result in unfair immigration-related discrimination, going against the Immigration and Nationality Act. Employees who look and/or sound foreign must not be treated differently than others during the recruiting, hiring, and verification processes, according to the U.S. Department of Justice's Immigrant and Employee Rights Section (IER), which enforces the INA's anti-discrimination provisions.
Mistake 4: Getting rid of I-9 forms for termed employees
When an employee leaves the company, you may be tempted to get rid of their I-9 form to clear space in your storage area, but don’t act quite yet.
Employers must keep I-9 forms for termed employees for 3 years from the date of hire or 1 year from the date of termination, whichever is later. If I-9 forms are disposed of early, they may be considered missing.
Mistake 5: Backdating the form
If an employer missed the strict time period to complete the I-9 form, there may be a temptation to backdate the form or change incomplete or missing I-9 forms. This will likely result in complications, an investigation, and fines. List the right date and don’t yield to the potential pull to backdate the document. Instead, complete the form as soon as possible using the true, current date, and attach a signed, dated memo explaining why the form is late.
Mistake 6: Using an outdated version of the I-9 form
The I-9 form is updated periodically, and when updates are made, the outdated version is no longer accepted for new employees. For instance, the form was updated in 2013, 2016, 2017, 2019, 2023, and most recently in January 2025. Employers may still use the 08/01/2023 edition through July 31, 2026, but must transition to the current 01/20/2025 edition after that date. The I-9 form includes an expiration date in the bottom left corner, so be sure to check this on a regular basis. To avoid any issues, download the latest form directly from the USCIS website.
Mistake 7: Creating discriminatory practices and processes for I-9 forms
All employee verification processes and standards for employees should apply to all employees, regardless of national origin. Panda Express learned the hard way in 2017 when the company deemed discriminatory Form I-9 practices.
The company required legal permanent U.S. residents to reestablish their work authorization when documents expired, but didn't require the same of U.S. citizen employees. The Department of Justice determined this was a clear violation of federal immigration law, resulting in a settlement that included a $400,000 civil penalty, a $200,000 back-pay fund for affected workers, as well as strict training requirements for the staff.
Make sure that your processes and standards apply across the employee base and aren’t subject to discrimination.
Mistake 8: Not conducting internal I-9 audits
Simply correcting mistakes on I-9 forms is a good short-term fix but doesn’t get to the long-term solution of reducing I-9 violations. Conducting internal I-9 audits and providing training can help with changes in I-9 form standards and practices.
Consider creating a Form I-9 checklist to guide the process and review of I-9 forms.
Mistake 9: Forgetting to remind employees with time limited work authorization about upcoming document expiration
Employees with time limited work authorization require Section 3 to be completed. When the document is nearing its expiry, employers should notify the employee—as a best practice, give at least 90 days' notice prior to the expiry. One exception: Permanent Resident Cards should never trigger reverification, even after the card itself expires, since lawful permanent resident status doesn't expire—only the physical card does.
FAQs
What happens if you make a mistake on an I-9 form?
Depending on the mistake, you could face fines from U.S. Immigration and Customs Enforcement—missing a due date alone can cost up to $2,861 per form. Common issues like using the wrong List A/B/C documents, backdating the form, or using an outdated version can also trigger an investigation. The best fix is to correct errors as soon as they're found and run regular internal I-9 audits to catch problems early.
How long does an employer have to complete Section 2 of the I-9?
Section 2 must be completed by the employee's third business day of employment. Section 1, by contrast, must be completed by the employee before the close of business on their first day. If the employer operates over weekends, those days count toward the deadline.
How long must employers keep I-9 forms for employees who leave the company?
Employers must retain a terminated employee's I-9 form for 3 years from their date of hire, or 1 year from their date of termination—whichever date is later. Disposing of the form before that window closes can mean it's treated as missing during an audit.
Can an employer ask to see a specific document to complete Form I-9?
No. Employers can't request a specific document from within List A, B, or C if the employee has already presented a document that's sufficient under U.S. Citizenship and Immigration Services rules. Asking for a specific document anyway—like requesting a passport when a Permanent Resident card was already provided—can amount to unfair immigration-related discrimination under the Immigration and Nationality Act.
What's the penalty for using discriminatory I-9 practices?
Discriminatory I-9 practices—like applying stricter reverification standards to non-citizen employees than to U.S. citizens—can result in Department of Justice enforcement action. Panda Express settled with the DOJ in 2017 for exactly this, paying a $400,000 civil penalty plus a $200,000 back-pay fund for affected workers, along with mandated staff training—so verification standards need to apply equally across your entire employee base.
