What Is the Penalty for Failing to Submit a Completed Form I-9 in Time?
The Form I-9 is a legal requirement for all employees hired in the United States. Failing to submit a completed Form I-9 within the required timeframe can result in significant consequences for both employees and employers. The penalties range from employment termination to fines and potential legal action. Understanding these deadlines and their implications is essential for compliance with federal employment laws.
Deadlines for Submitting Form I-9
The Form I-9 must be completed and submitted within strict timelines:
Section 1 (Employee):
Employees must complete and sign Section 1 of the Form I-9 on or before their first day of employment.Section 2 (Employer):
Employers must verify the employee's documents and complete Section 2 within three business days of the employee’s first day of work.
If these deadlines are not met, both the employee and employer may face penalties.
Penalties for Employees
Employment Termination:
Employees who fail to submit a completed Form I-9 by the deadline may be deemed ineligible to work and could face immediate termination.
Delay in Starting Work:
New hires may not be allowed to begin employment until the Form I-9 is submitted and verified.
Potential Fraud Investigation:
Delays in providing valid documents could raise concerns about work authorization, potentially leading to further scrutiny.
Penalties for Employers
Employers bear the responsibility of ensuring Form I-9 compliance for every employee. Failure to meet deadlines can result in:
Civil Fines:
Employers can face fines ranging from $272 to $2,701 per Form I-9 violation for first-time offenses.
Repeat violations carry higher fines, potentially exceeding $27,000 per infraction.
Criminal Charges:
Willfully failing to comply or hiring unauthorized workers can result in criminal charges against the employer.
Business Disruption:
Non-compliance may trigger audits by U.S. Immigration and Customs Enforcement (ICE), disrupting business operations.
Damage to Reputation:
Employers found non-compliant may face reputational harm, impacting future hiring and business relationships.
How to Avoid Penalties
For Employees:
Complete Section 1 Promptly: Submit your Form I-9 no later than your first day of employment.
Provide Accurate Information: Double-check your entries and ensure you provide valid, unexpired documents.
Communicate with Your Employer: If you anticipate delays in gathering required documents, notify your employer immediately.
For Employers:
Track Deadlines: Implement a system to monitor Form I-9 completion and document verification timelines.
Provide Guidance: Educate new hires on the importance of timely submission and assist them in understanding document requirements.
Stay Informed: Regularly review Form I-9 compliance rules and updates from the USCIS I-9 Central website.
Why Timely Submission Matters
Timely submission of Form I-9 is crucial for:
Ensuring Legal Compliance: Adhering to federal requirements protects both employees and employers from penalties.
Streamlining Onboarding: Completing the Form I-9 on time prevents delays in hiring and ensures a smooth onboarding process.
Avoiding Legal Risks: Proactively meeting deadlines reduces the risk of audits, fines, and other complications.
Key Takeaways
Employees must complete Section 1 of the Form I-9 by their first day of work, and employers must verify and complete Section 2 within three business days.
Missing deadlines can lead to employment termination for employees and fines, audits, or legal actions for employers.
Clear communication and adherence to timelines are essential for avoiding penalties and ensuring compliance.
By understanding the penalties and taking proactive steps to meet deadlines, both employees and employers can ensure they comply with federal employment laws and maintain a seamless hiring process.