Immigration Compliance for Employers in a Nutshell

By: Jacob Monty

Now that the Big Beautiful Bill has gone into effect ICE is extremely well funded. The increase in funding and daily arrest quota of 3,000 indicates that the already aggressive immigration enforcement atmosphere will continue to escalate.

Under federal law, employers are required to complete Form I-9 for all employees hired after November 6,1986. Failure to do so may expose business owners to large civil fines and criminal charges.  But the urgency of doing internal mock audits and preparing for surprised immigration enforcement action is now more than ever. Most recently, on September 4,2025, the Hyundai auto plant raid led to the detention of 500 foreign nationals and business disruptions.

How employers are reacting

Currently, employers are opting to electronically create and store I-9s instead of retaining paper files. Before making the move, employers must consider if the software complies with the law.

Brief Overview of Software Requirements

Among other things, software used to electronically store I-9s must prevent unauthorized changes, create an audit trail, and employers must periodically check their electronically stored forms.

When DHS issues a Notice of Inspection (“NOI”) employers utilizing electronic software have three business days to present I-9s, a description of the system including all procedures relating to its use, and corresponding audit trails. An audit trail tracks all changes made to the electronic form by keeping a record of who accessed the document, date and time of entry, and a description of the entry made, or section updated.

OCAHO’s ruling in United States of America v. KLJ Leasing (“KLJ”) provides insight into the potential liability employers face when their software is inadequate. KLJ was charged with failing to present audit trails within three days after receiving a NOI.

Due to technical errors, it took a month and a half for KLJ to turn over 142 audit trails. The court sided with the State demonstrating that any refusal or delay in providing the audit trails is a violation of failing to properly retain I-9s.

KLJ teaches employers that switching to electronically storing I-9s does not absolve them from liability. The same is true when employers switch to E-Verify. It is a common misconception that when employer switch to E-Verify they are automatically compliant. Business immigration laws require much more from employers.

Employers must remember to:

• conduct internal I-9 audits;
• regularly confer with the USCIS website for any immigration updates and changes;
• review their onboarding policies;
• ensure that onboarding staff understand the I-9 and it’s requirements.

For assistance, please contract Monty & Ramirez LLP, experts in labor and employment as well as business immigration issues.