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Form I-9 compliance in 2026: what employers need to know

ICE has expanded the Form I-9 errors it can fine without a chance to correct them, and DHS has ended automatic extensions for many EAD renewals. Here is what employers need to know and do in 2026.
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Every U.S. employer must verify that its employees are authorized to work, and Form I-9 is how that verification is documented. Two developments in 2026 raised the stakes:

  • ICE updated its inspection guidance, so more Form I-9 errors are now treated as substantive violations that can be fined without a chance to correct them.
  • DHS finalized a rule ending automatic extensions for renewal applications in certain EAD categories filed on or after October 30, 2025.

This guide covers what the rules require, what changed, and how to reduce risk.

The basics

Employers must complete Form I-9 for every employee hired in the United States after November 6, 1986, including U.S. citizens. ICE, through Homeland Security Investigations, conducts inspections. The Department of Justice enforces anti-discrimination rules, so employers must verify every employee the same way and let employees choose which acceptable documents to present.

Key rules:

  • Section 1: the employee completes it no later than the first day of employment for pay.
  • Section 2: the employer completes it within three business days of the first day, so by Thursday for a Monday start. If the job lasts fewer than three business days, both sections are due on day one.
  • Documents: one from List A, or one each from List B and List C. Remote examination is allowed only for qualified E-Verify employers using the DHS alternative procedure.
  • Retention: keep each form until three years after the first day of employment or one year after employment ends, whichever is later.
  • Electronic systems: must meet federal requirements for signatures, audit trails, security, and reproduction.

ICE's March 2026 inspection guidance

On March 16, 2026, ICE updated its inspection guidance and expanded the list of errors it treats as substantive.

The distinction matters. After ICE gives notice, employers get at least 10 business days to correct technical or procedural failures. Substantive violations have no correction period and can lead directly to proposed fines.

Examples of errors now treated as substantive:

Form I-9 areaExamples of potentially substantive errors
Section 1Missing date of birth or incomplete employee signature information
Section 2Missing or incorrect document title, issuing authority, document number, or expiration date
Section 2Missing employee start date or employer representative information
Section 2Missing certification date
Supplement AIncomplete preparer or translator certification
Supplement BMissing required rehire information
Remote verificationFailure to follow the authorized alternative examination procedure
Electronic recordsFailure to satisfy applicable federal electronic I-9 system requirements

One change stands out: keeping copies of supporting documents no longer makes missing Section 2 document details a correctable technical error.

The update is enforcement guidance, not a new statute or regulation, and some practitioners have questioned it. It still shows how ICE will review your records.

Inspections and penalties

An inspection starts with a Notice of Inspection. Employers have at least three business days to produce their Forms I-9, and ICE may also request payroll records and employee lists. After its review, ICE may find the employer compliant, list correctable errors, or issue a Notice of Intent to Fine. The employer then has 30 calendar days from receipt to request a hearing.

Penalties. Paperwork violations carry fines of $288 to $2,861 per violation under the 2025 DHS schedule. OMB canceled the 2026 inflation adjustment, so these amounts still apply. Knowingly hiring or keeping unauthorized workers carries higher penalties that rise with repeat violations. ICE sets the final amount using five factors: business size, good faith, seriousness of the violation, whether unauthorized workers were involved, and violation history.

Fix errors before an inspection. Correct forms transparently and never backdate or conceal changes. If a form was never completed, complete it now with current dates and note why it is late.

EAD renewals and reverification

Before October 30, 2025, employees in certain EAD categories who filed timely renewals received an automatic extension of up to 540 days. DHS ended that for renewals in those categories filed on or after October 30, 2025, and finalized the rule without changes on October 14, 2026. For affected employees, a pending renewal alone no longer allows them to keep working after the EAD expires.

Some extensions still apply:

  • Renewals filed before October 30, 2025 keep their automatic extension.
  • Temporary Protected Status extensions set by statute or Federal Register notice continue.
  • The separate 180-day STEM OPT extension continues.
  • Employees authorized to work incident to status, such as L-2 spouses, may remain authorized after the EAD expires, though they need another acceptable document.

Reverification is completed in Supplement B no later than the date temporary work authorization expires. Do not reverify U.S. citizens, permanent residents whose green card expires, or List B identity documents. Unnecessary reverification creates discrimination risk.

Track the date that actually governs work authorization. For example, an expired visa stamp does not end work authorization for an employee who remains in valid status in the United States.

Plan for international travel. Each time a nonimmigrant employee re-enters the United States, CBP issues a new Form I-94, and its expiration date may differ from the previous one. Employers cannot monitor travel directly, so ask sponsored employees to tell HR or immigration counsel about upcoming trips and to share their new I-94 when they return. This keeps immigration planning current. For Form I-9 reverification, rely only on the documents the employee chooses to present. Travel can also affect pending applications, so employees should check with immigration counsel before leaving the country while a change of status or green card application is pending.

How to stay compliant

  • Audit existing forms at least once a year, and after any acquisition, new I-9 system, or major guidance change, using the same process for every employee.
  • Train everyone who completes Section 2 on deadlines, acceptable documents, and correction procedures.
  • Confirm your electronic I-9 system meets federal requirements and uses a current form edition.
  • Track work authorization end dates for every sponsored employee, and coordinate with immigration counsel.
  • Ask sponsored employees to share travel plans and their new I-94 after each trip, so immigration dates stay current.
  • Decide in advance who receives and responds to a Notice of Inspection.

How Casium helps

For sponsoring employers, a late renewal or an extension HR does not know about can turn into a work authorization gap. Casium keeps immigration filings, deadlines, and case information in one place, so HR, legal, and mobility teams can plan renewals and spot potential gaps early. Casium is not a Form I-9 system. Immigration case files should never be used to complete or reverify Form I-9: the I-9 must be based only on the documents each employee chooses to present.

Managing a sponsored workforce? Book a demo with our team.

This article provides general information about federal employment verification requirements as of October 29, 2026. It is not legal advice. Consult qualified immigration or employment counsel about your specific circumstances.

Sources

Your questions?
Answered

Is Form I-9 required for U.S. citizens?

Yes. Employers must complete Form I-9 for every employee hired in the United States after November 6, 1986, including U.S. citizens.

Can employers complete Form I-9 remotely?

Only qualified E-Verify employers using the DHS alternative procedure. All other employers must examine documents in person.

Can an employee keep working while an EAD renewal is pending?

It depends. Renewals in the affected EAD categories filed on or after October 30, 2025 no longer get an automatic extension, but the employee may qualify under one of the exceptions or have another basis to work.

How often should employers audit Forms I-9?

Federal law does not require a set schedule. An annual audit, plus one after any major change, is a common best practice, especially for employers that hire often or sponsor visas.

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