I-9 Audits & ICE Workplace Raids: What Employers Must Do Now - PODCAST Included

This article is based on a critical webinar "I-9 Audits & ICE Workplace Raids: What Employers Must Do to Stay Compliant" presented by seasoned HR compliance expert Margie Faulk, PHR, SHRM-CP, for Amorit Education on February 26, 2025, provides a comprehensive overview of the current environment, the risks employers face, and, most importantly, the actionable steps you must take to stay compliant.

Introduction

"I-9 audits are the knock on the door before an ICE raid," Margie Faulk warned as she opened the session. Employers today face heightened scrutiny as immigration enforcement tightens across industries. The government is not just increasing the number of audits and inspections but also levying steeper fines and expanding worksite enforcement efforts. This webinar, led by compliance expert Margie Faulk, PHR, SHRM-CP, walked employers through the entire audit and raid process, providing step-by-step guidance on risk reduction and compliance preparedness.

She emphasized that the enforcement environment is evolving rapidly, and businesses cannot afford to remain complacent. "Enforcement is back, and it's aggressive," Margie stated. "If you're not proactively reviewing your I-9 forms, you're setting yourself up for significant risks."

Understanding the Compliance Landscape

Margie provided a historical overview of I-9 compliance and how enforcement priorities have shifted over the years. She explained that while some administrations have been more lenient, the current climate is one of heightened enforcement. "The biggest mistake employers make is thinking that compliance is optional. It’s not. And when ICE comes, they won’t care about excuses," she said.

She outlined key factors leading to increased enforcement:

• Surge in I-9 audits and E-Verify enforcement – DHS is significantly increasing investigations, meaning employers must ensure their documentation is in order.
• Targeting of industries with high undocumented employment rates – Sectors like construction, manufacturing, hospitality, and agriculture are facing higher scrutiny.
• Fines increasing annually – "Even minor mistakes on I-9 forms can add up to thousands in penalties," Faulk cautioned, citing penalty increases from $698 to $27,894 per violation.
• Expansion of ICE workplace raids – "Sanctuary cities are no longer exempt," she noted, explaining that enforcement has widened considerably.

She urged attendees to conduct internal audits immediately, rather than waiting for ICE to find errors. "If you think you’re safe because you’ve never been audited, think again. The government is actively looking."

The I-9 Audit Process: What Happens Step by Step

Margie provided a detailed breakdown of the I-9 audit process, emphasizing what employers should expect:

1. Receipt of Notice of Inspection (NOI) – "You’ll get 72 hours to submit your I-9s, payroll records, and supporting documentation. This is not a lot of time. Be ready."
2. Document Review – ICE reviews I-9s for errors like missing forms, incomplete information, and improper corrections.
3. Follow-up Requests and Suspect Documents Notice – "If ICE finds something questionable, they’ll demand additional documentation. You need to be able to respond quickly."
4. Fines and Penalties – "Expect fines ranging from hundreds to tens of thousands of dollars per mistake. If your I-9s are a mess, the financial impact can be devastating."
5. Corrective Action Period – If ICE allows, businesses may get time to correct errors before full penalties apply. "But don't count on leniency," Faulk warned. "Your best defense is ensuring compliance before they audit you."

She reiterated that employers should not ignore notices or attempt to delay compliance, as doing so could lead to escalated enforcement actions.

ICE Workplace Raids: How They Unfold

"If ICE agents show up at your business, they won’t wait for you to figure out what to do," Margie cautioned. She walked through a realistic scenario of how workplace raids typically unfold:

• Agents arrive in large numbers – "ICE prefers to surprise you. They show up with multiple officers and immediately secure all entrances and exits."
• Employee detentions begin – "Workers without proper documentation will be questioned, and some may be detained on the spot."
• Records and electronic files are seized – "They’ll take payroll data, tax records, and any information they believe is relevant to their case."
• Employer representatives are questioned – "Supervisors and HR staff will likely be interviewed about hiring practices and compliance."
• Legal implications follow – "If serious violations are found, business owners can face criminal charges in addition to fines."

She emphasized the importance of having a response plan in place. "If you’re caught unprepared, it’s too late. Your business will suffer the consequences."

How to Prepare and Protect Your Business

Margie provided a five-step compliance plan that every business should implement:

1. Conduct Internal I-9 Audits Regularly – "You should be auditing at least once a year. More if you have high employee turnover."
2. Centralize and Organize I-9 Storage – "Forms should be stored separately and easy to access. Never mix them with personnel files."
3. Train Managers and HR Staff on ICE Protocols – "Every supervisor should know exactly what to do if ICE arrives. Confusion can make things worse."
4. Develop a Workplace Raid Response Plan – "Have a designated legal contact, a communications strategy, and a plan to manage employee concerns."
5. Stay Updated on Policy Changes – "Immigration laws are changing constantly. If you’re not keeping up, you’re at risk."

She stressed that preparation is the key to survival. "Companies that have solid compliance practices will be in a much better position to handle audits and raids. Those that don’t will struggle."

Final Thoughts from Margie Faulk

"This isn’t a question of if you’ll be audited—it’s a question of when," Margie Faulk concluded. She urged attendees to take immediate action to ensure compliance, stating, "The best way to avoid costly fines and legal trouble is to be proactive. Don't wait for ICE to knock on your door."

She left employers with a strong call to action: "Audit yourself now. Train your staff. Fix mistakes before ICE finds them. Your business depends on it."

Visit Amorit Education for more resources and access the full webinar recording.

Amorit Education PODCAST:

To provide a deeper understanding and analysis of the key points discussed in the webinar, we have created a 30-minute podcast where our team breaks down the most critical insights and actionable steps from the webinar. Listen to the podcast below to reinforce your compliance strategy.