Hiring Practices to Ensure Compliance 

A fundamental part of compliance is ensuring proper documentation for all employees. A key requirement for all U.S. employers is completing and maintaining Form I-9, which verifies identity and work authorization status for every new hire. Keeping accurate records and following best practices can help businesses avoid fines, audits, and legal risks. 

Form I-9 Requirements 

Every U.S. employer must complete Form I-9 for each employee. This form is required for all new hires, regardless of their citizenship or immigration status. The form serves as a verification tool to confirm that an employee is authorized to work in the United States. Employers should keep in mind the following deadlines: 

• The employee must complete Section 1 before or on their first day of work. 
• The employer must review and verify the employee’s documentation and complete Section 2 within three business days of the employee’s start date. 
• Employers must keep the I-9 form on file for three years from the date of hire or one year after the employee leaves the company—whichever is later. 

What About Independent Contractors? 

Unlike employees, independent contractors are not required to complete Form I-9. The responsibility for verifying work authorization falls on the contractors themselves, not the hiring company. However, misclassifying a worker as an independent contractor when they should be an employee can create legal risks.  

To avoid misclassification issues, businesses should: 

• Clearly define the nature of the working relationship in a contract. 
• Consult IRS guidelines or seek legal advice if unsure whether a worker qualifies as an independent contractor. 

Common Mistakes and Best Practices 

Employers often make simple but costly mistakes when handling I-9 forms, such as missing signatures, incomplete sections, or failing to reverify work authorization for employees with expiring documents. To maintain compliance, businesses should consider the following best practices: 

• Create a Solid Hiring Process – Each employer should create a system of compliance and verification that include steps to minimize common mistakes. 
• Consider E-Verify (Optional but Helpful) – While not required for all businesses, E-Verify is an online system that compares I-9 information against government records, offering an extra layer of verification. 
• Conduct Regular Internal Audits – Periodically reviewing I-9 forms can help identify and correct errors before an official audit. This review can be done internally or with the help of a legal expert. 
• Train HR and Hiring Managers – Ensuring that those responsible for onboarding understand the correct way to complete and verify I-9 forms can prevent common errors. 
• Establish a Clear Document Retention Policy – Keeping I-9 forms well-organized—whether electronically or in paper format—ensures they are readily available in the event of an audit. 

Why Compliance Matters 

Non-compliance with I-9 requirements can result in fines, penalties, and increased scrutiny from regulatory agencies. The Department of Homeland Security (DHS) and Immigration and Customs Enforcement (ICE) conduct audits to ensure businesses are maintaining proper hiring records.  

Taking a proactive approach to I-9 compliance not only helps businesses avoid legal trouble but also reinforces ethical and responsible hiring practices. Employers who follow best practices and stay informed about changing regulations will be better equipped to handle any compliance challenges. 

Employers can refer to the U.S. Citizenship and Immigration Services (USCIS) website or consult with an HR or legal professional to ensure they are following the latest regulations. 

DISCLAIMER: The WM Daily Update, WM Wednesday Wisdom, Newsletters, and other related communications are intended to provide general information as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.