WASHINGTON, D.C. — As the Trump administration intensifies its crackdown on illegal immigration, employers must be increasingly vigilant about their Form I-9 compliance. Workplace raids have already begun, and experts predict a surge in audits targeting both paper and electronic Form I-9s, the critical documents used to verify employee work eligibility in the U.S.

A group of legal professionals is raising alarms about a significant but often overlooked vulnerability: noncompliant electronic Form I-9 vendors. Employers using faulty electronic systems could face steep fines and penalties—even if their workers are legally authorized to work.

The Rise of Electronic I-9s and Compliance Risks

Traditionally, Form I-9 verification involved an in-person process where employers reviewed documents such as passports, green cards, and government IDs. However, the shift toward digital solutions—accelerated by the COVID-19 pandemic—has introduced new risks.

In 2020, U.S. Immigration and Customs Enforcement (ICE) temporarily allowed remote verification of employee documents. This was later made permanent in 2023 for E-Verify participants in good standing. Meanwhile, many HR information system vendors, law firms, and third-party providers have developed electronic I-9 platforms, promising efficiency and streamlined record-keeping.

Yet, according to David Adams, an account executive at background check provider SafestHires, some of these systems fail to meet federal compliance standards, putting employers at risk of violations that could be uncovered under the Trump administration.

Two Key Areas of Concern for Employers

Legal experts have identified two primary issues with electronic I-9 platforms:

Prepopulated Employee Information

‍Some vendors automatically fill out parts of the Form I-9, such as an employee’s biographical details, using data from job applications. However, ICE and the U.S. Department of Justice explicitly prohibit this practice. Employers are responsible for ensuring that each form is completed correctly and in compliance with federal regulations.

Electronic Signatures and Recordkeeping

Paper Form I-9s affixed with an electronic signature must meet a separate set of Department of Homeland Security (DHS) standards, which some vendors fail to follow. Federal regulations require employers to maintain secure audit trails, restrict unauthorized access, and ensure employees affirm their attestations with a verifiable electronic signature.

“You need to look at your system,” Adams cautioned, emphasizing that employers cannot simply take a vendor’s word for compliance.Legal Consequences of NoncomplianceICE has a history of penalizing employers over electronic I-9 violations. In 2010, Abercrombie & Fitch was fined over $1 million for deficiencies in its digital I-9 system. Similar enforcement could ramp up under Trump’s administration, with penalties for I-9 paperwork violations recently increasing to $2,861 per infraction.“If it’s not compliant, you’re going to pay so much money,” Adams warned.Legal experts also stress that I-9 audits can result in penalties even if a company’s workforce is fully authorized to work in the U.S. “They will do everything to break the employment magnet in the U.S. Everybody’s in the crosshairs here,” said Chris Thomas, a partner at Holland & Hart.What Employers Should Do NowLegal professionals urge HR teams to proactively vet their Form I-9 vendors and confirm compliance with DHS regulations.“ICE is not going to let you off the hook,” said Doug Kauffman, a partner at Balch & Bingham.

Employers should conduct internal audits of their I-9 records and ensure that vendors can provide all necessary documentation, including audit trails, employee attestations, and security measures, within ICE’s required three-day response window.“Even a smaller review can allow an employer to course correct and reduce their risk of exposure going forward,” added Eileen Lohmann, a senior associate at law firm BAL.With increased immigration enforcement on the horizon, employers must take immediate action to safeguard their compliance and avoid costly penalties.