I-9 Compliance Is Still in the Spotlight
If you’re an employer, you’ve probably noticed that I-9 compliance is drawing more attention lately. What used to be a quiet HR formality has become a serious compliance issue.
Across the country, U.S. Immigration and Customs Enforcement (ICE) is stepping up both audits and worksite visits to confirm employment eligibility. Companies in New Jersey and other high-volume labor markets are seeing the most activity, with new rounds of inspections and even unannounced visits.
Whether you’re managing a manufacturing plant, warehouse, or distribution center, understanding how this impacts you is essential. Mistakes on a single form can lead to steep penalties, reputational harm, or disrupted operations. Let’s take a closer look at what’s happening, what it means for employers, and how you can protect your business.
The Enforcement Landscape: Audits and Raids Are Increasing
According to ICE’s official fact sheet, the agency conducts thousands of Notices of Inspection (NOIs) each year. Employers who receive one must produce their I-9 records within three business days.
Recent data and legal reports show a clear rise in activity:
- ICE has ramped up to 12,000–15,000 I-9 audits per year, returning to pre-2019 levels.
- Penalties for violations now range from $288 to $2,861 per worker for first-time offenses and can climb as high as $28,000 per worker for repeat issues.
- The Department of Homeland Security has stated that “critical infrastructure employers” such as logistics, food processing, and manufacturing are primary targets.
ICE has also resumed worksite raids: unannounced visits where agents may request immediate access to I-9 records and employee information. Employers who are not prepared can find themselves scrambling to comply under pressure.
Why Staffing-Heavy Industries Are at Greater Risk
The American Staffing Association (ASA) has pointed out that staffing-intensive industries face higher exposure simply because of the volume and pace of hiring. When hundreds of employees are being onboarded every week, even small procedural lapses can add up quickly.
Some of the most common risks include:
- Incomplete or missing information in Section 2 of the I-9.
- Errors in document verification or acceptance of expired IDs.
- Misplaced or outdated records that should have been retained or purged.
- Shared liability between staffing providers and their client companies.
Research from Staffing Industry Analysts (SIA) shows a nearly 40% increase in ICE fines over the past year, with staffing, logistics, and warehousing companies appearing most frequently in enforcement actions.
If your business works with contingent or temporary labor, it’s especially important to know where your I-9 records are stored, who manages them, and whether your partners are following best practices.
Spotlight on New Jersey: A High-Activity Market
New Jersey has become one of the nation’s most active regions for I-9 enforcement. The state’s dense concentration of warehouses, fulfillment centers, and food processing facilities makes it a natural focal point for both state and federal oversight.
Local immigration attorneys have reported a noticeable rise in ICE visits and audits across North and Central Jersey, particularly in areas like Newark, Secaucus, Swedesboro, and Trenton. In some cases, federal and state investigators are conducting joint inspections that review payroll, tax, and work authorization records together.
For employers in this region, regular self-audits and up-to-date recordkeeping are essential. Being able to produce complete, compliant I-9s within 72 hours of an ICE request can make the difference between a smooth inspection and a costly violation.
The True Cost of I-9 Non-Compliance
The risks tied to I-9 errors extend far beyond government fines. Employers may also face:
- Operational disruption, as HR teams and site managers are pulled into audit preparation.
- Public exposure, since ICE often publishes names of cited employers.
- Loss of contracts, especially with larger clients that require strict compliance from vendors.
- Debarment from government contracts for repeat offenders.
Even when the errors are unintentional, ICE treats incomplete or inaccurate I-9s as serious compliance failures. For businesses that rely on contingent labor, these penalties can multiply quickly.
Practical Steps to Strengthen Your Compliance
A few proactive habits can go a long way toward reducing risk and showing good-faith compliance. Consider these best practices:
- Conduct internal I-9 audits at least once a quarter. Correct technical errors following ICE guidance.
- Use the E-Verify system to confirm employment eligibility and maintain a digital record of verification.
- Train all onboarding and HR staff on proper document inspection and anti-discrimination protocols. The ASA offers compliance webinars specifically for this purpose.
- Retain I-9s for the correct period—three years after the date of hire or one year after termination, whichever is later.
- Designate an ICE response coordinator in advance and develop a simple communication plan for managers.
- Stay informed on DHS and ICE updates by subscribing to worksite enforcement bulletins.
Consistency matters. The employers who fare best in audits are those who can show a pattern of ongoing compliance efforts, not just last-minute fixes.
Why E-Verify Staffing Partners Make a Difference
Partnering with an E-Verify staffing agency adds a strong layer of protection. These agencies are required to confirm employment authorization for every associate through the government’s electronic system and maintain secure, retrievable records.
For companies managing large seasonal or project-based workforces, this partnership ensures each worker’s verification is handled accurately and consistently.
Frequently Asked Questions About I-9 Audits
ICE may initiate an audit based on anonymous tips, data mismatches, or patterns of high turnover that suggest potential non-compliance.
Employers have three business days to produce I-9 forms and related records. View official ICE guidance.
Ask to see a warrant, notify your company’s legal representative, and cooperate fully without obstructing the process. Document every interaction.
No. Both the staffing firm and the client company can be held responsible if they share hiring or payroll duties.
Yes, but only for employers enrolled in E-Verify who meet specific DHS requirements. See DHS remote verification rules.
Final Thoughts
I-9 compliance is about more than paperwork. It’s a reflection of how seriously your organization takes legal and ethical hiring. The growing number of audits and raids, especially in places like New Jersey, shows that enforcement is here to stay.
Now is the time to review your processes, retrain your teams, and ensure your staffing partners are part of the solution. A little preparation today can save a lot of disruption tomorrow.
Download our Quick Employer ICE Readiness Checklist to get started.
