When it comes to immigration compliance, one of the most critical documents U.S. employers must manage is the Form I-9. Used to verify the identity and employment authorization of individuals hired for employment in the United States, Form I-9 plays a central role in helping employers maintain legal compliance with federal hiring laws. However, many employers are unclear about how long to retain these forms and whether they require periodic updates.
What Is Form I-9 and Why Is It Important?
Form I-9, Employment Eligibility Verification, is a requirement for all U.S. employers to complete for every new hire—citizens and non-citizens alike. This form ensures that the employee is legally authorized to work in the U.S. and helps prevent unauthorized employment.
Employers must ensure that employees complete Section 1 of the form by the first day of work and that employers complete Section 2 by the third business day of employment. In some cases, Section 3 is used for reverification or rehires.
How Long Should Employers Retain Form I-9?
The retention period is not indefinite. Employers must retain each employee’s I-9 form for a specific period, and the rules are as follows:
Retention Rule:
Employers must keep an I-9 form for either:
- Three years after the date of hire, or
- One year after the date employment ends Whichever is later.
Example:
If an employee is hired on July 1, 2020, and leaves the company on July 1, 2022:
- Three years from hire date: July 1, 2023
- One year from termination date: July 1, 2023
Result: You must retain the I-9 until July 1, 2023.
Failing to retain I-9s for the required duration can result in hefty fines during an audit by Immigration and Customs Enforcement (ICE).
Do I-9 Forms Need to Be Updated?
Generally, I-9 forms do not need to be updated once completed correctly—unless specific situations arise that require reverification or rehiring.
1. Reverification
When an employee’s work authorization has an expiration date (such as in the case of a visa holder), employers must reverify their work authorization before the document expires. This is done using Section 3 of the original I-9 form.
Important: U.S. citizens and lawful permanent residents do not need reverification since their work authorization never expires.
To know more about what documents are needed for i9, do read our in-depth blog.
2. Rehire
If an employee is rehired within 3 years of the original hire date, you can either:
- Use the original I-9 and complete Section 3 with the rehire date, or
- Complete a new I-9 form altogether.
3. Name Changes
You are not required to update an I-9 form when an employee changes their name. However, maintaining current employee records is considered a best practice. You may note the change for internal tracking, but it’s not mandatory under federal law.
Best Practices for I-9 Compliance
- Store securely: Keep I-9 forms separate from personnel files in a secure location—either electronically or in hard copy.
- Create a tickler system: Track expiration dates of documents for timely reverification.
- Purge old I-9s: Regularly review and dispose of I-9 forms past their retention period to avoid liability during audits.
- Prepare for audits: ICE can inspect I-9 records with just three days’ notice, so always be ready.
Explore our Payroll and Accounting Webinars to stay informed on all aspects of HR compliance, employee documentation, and best practices for managing your workforce legally and efficiently.
Penalties for Non-Compliance
Employers who fail to properly complete, retain, or reverify I-9 forms may face significant penalties for i-9 violation, including:
- Fines per violation (ranging from $272 to $2,701 per form error in 2025)
- Criminal charges for knowingly hiring unauthorized workers
- Loss of business licenses in some states
These penalties can add up quickly, making proper I-9 handling a vital compliance responsibility for HR and payroll departments.
To know more about fixing I-9 form mistakes, do read our in-depth blog.
Final Thoughts
Managing Form I-9 compliance isn’t just about filling out paperwork, it’s about protecting your organization from regulatory fines, audits, and potential legal issues. By understanding how long to keep I-9 forms and when they need to be updated, employers can stay ahead of compliance risks and demonstrate due diligence in hiring practices.
