The Form I-9 process has many layers, each important for achieving compliance. Most employers focus on accurately completing the form. However, what happens after populating it is also critical. Securely storing I-9 forms is imperative, mainly because you may need to retrieve them for a future audit.
Does that mean you must retain every I-9 your business has ever handled? What happens when an employee leaves the company? The guidelines the federal government provides via the USCIS are clear and straightforward. Let’s review them.
Companies must store the Form I-9 record for all employees. There are no exceptions to this retention rule. You must complete the form with the employee’s contributions within three days of the individual’s official hire date. You should also record that hiring date on the I-9, as it will be essential for calculating retention rates if and when the employee separates from your business.
Explore the USCIS Handbook for Employers M-274 for more information about secure storage and how to retain I-9 forms for existing employees.
When an employee leaves your business, you cannot immediately discard their I-9 form. The government may still request an audit of your records. Violations for improper I-9 completion can still occur even if an employee has left your service.
The government’s basic rule is this: you must retain records for three years after the date of hire or one year after the end of employment—whichever period is longer. Let’s simplify that:
Several government agencies can initiate federal I-9 audits against companies suspected of violating the law. A properly completed and maintained employee Form I-9 is evidence of your due diligence and compliance. If you dispose of an employee’s record too soon, you could be caught empty-handed during an audit.
You could face disciplinary action without any evidence that you completed the form as required. This action can include hefty monetary fines for each uncovered violation.
To avoid the headaches and financial pressure that can accompany federal I-9 audits, you should ensure you have a system set up to retain records appropriately. It is the responsibility of the employer to have a Form I-9 ready for inspection within days after a formal request.
To recap, you must always retain I-9 forms for those currently employed in your business. If someone has worked for you for less than two years, keep the form from their hiring date for three years. If they worked for over two years, keep the form for one year after their last day. These simple rules tell you everything you need to know about retaining I-9s.
Remember to periodically review your I-9 files to determine which forms no longer merit retention. Securely dispose of those records, either by physical destruction or through permanent electronic deletion. With such procedures in place, you can manage an efficient system for storing Form I-9 records. Audit your procedures and ensure your HR team understands retention and removal requirements today.