I-9 Documentation: What Small Business Employers Must Verify for Every Hire
I-9 documents prove identity and work authorization. Learn which documents to accept (List A, B, C), the 3-day deadline, and how to avoid common mistakes.
I-9 Documentation
Which documents to accept, the 3-day deadline, and how to verify work authorization without making costly mistakes
The first time I hired an employee, I had no idea what I-9 documentation meant. The employee showed up on Day 1, I handed them a stack of paperwork, and when we got to Form I-9, I asked for a passport. She did not have one. I did not know what else to accept. I told her to bring something tomorrow. That was two mistakes in one sentence: I specified a document (illegal) and I missed the deadline for her to choose her own documents from the acceptable list.
Form I-9 is required for every employee hired in the United States, regardless of company size, citizenship status, or position. There is no minimum employee count. A sole proprietor hiring their first employee must complete it. A 50-person company hiring their 51st must complete it. The form itself takes 10 minutes, but the rules around which documents to accept, the 3-business-day deadline, what you can and cannot say, and how long to keep the forms are where most small business owners make expensive mistakes.
This guide covers exactly what I-9 documentation means, which documents are acceptable (List A, B, and C), how to complete Section 2 as the employer, the 3-day deadline, retention rules, reverification, and the penalties for getting it wrong. I built FirstHR to automate the document collection and e-signature workflow that I-9 compliance requires, including preboarding Section 1 completion, task workflow reminders for the 3-day deadline, and secure document storage with retention tracking.
What Is I-9 Documentation?
I-9 documentation refers to the documents that verify an employee's identity and authorization to work in the United States. The verification is done through Form I-9 (Employment Eligibility Verification), which every employer must complete for every employee hired after November 6, 1986.
Two critical rules to understand immediately. First, the employee chooses which documents to present. The employer cannot request specific documents, cannot require more documents than the form requires, and cannot reject documents that reasonably appear to be genuine. Second, the employer must examine original documents (not photocopies), but the employer is not required to be a document fraud expert. If the document reasonably appears genuine and relates to the person presenting it, the employer must accept it.
Who Must Complete Form I-9
| Who | Required? | Notes |
|---|---|---|
| Every employee hired after November 6, 1986 | Yes | No exceptions based on company size, industry, or employee citizenship status. US citizens and noncitizens alike must complete I-9. |
| Independent contractors (1099) | No | I-9 is only for employees. If the worker is a true independent contractor, the hiring entity does not complete I-9. But misclassification creates I-9 liability retroactively. |
| Temporary or seasonal employees | Yes | Duration of employment does not affect the I-9 requirement. A one-day temp hire requires I-9. |
| Minors (under 18) | Yes | Same requirements. A parent or legal guardian may complete Section 1 on behalf of a minor or individual with a disability. |
| Remote employees | Yes | The employer must examine original documents. For remote employees, an authorized representative can examine documents on the employer's behalf. The employer remains responsible for compliance. |
| Rehired employees | Depends | If the employee is rehired within 3 years of the original I-9 completion and the I-9 is still valid, the employer can use Section 3 (Reverification and Rehire) instead of completing a new form. |
The employee vs contractor guide covers classification rules. If you misclassify an employee as a contractor and skip the I-9, you face both misclassification penalties and I-9 penalties when the error is discovered.
Section 1 vs Section 2: Who Does What
| Section | Completed By | When | What It Covers |
|---|---|---|---|
| Section 1: Employee Information and Attestation | The employee | On or before the first day of work for pay (can be completed during preboarding) | Employee's full legal name, address, date of birth, Social Security number (optional unless employer uses E-Verify), and attestation of citizenship/immigration status. Employee signs under penalty of perjury. |
| Section 2: Employer Review and Verification | The employer (or authorized representative) | Within 3 business days of the employee's first day of work for pay | Employer examines original documents from List A, or List B + List C. Records document title, issuing authority, document number, and expiration date. Employer signs certifying that documents appear genuine and relate to the employee. |
| Section 3: Reverification and Rehire | The employer | When work authorization expires, or when an employee is rehired within 3 years | Records new document information for reverification. Can also be used to record a legal name change. |
List A: Documents That Prove Both Identity and Work Authorization
If the employee presents a List A document, no other document is needed. One List A document satisfies both the identity and work authorization requirements. The USCIS Acceptable Documents page provides images of each document.
| Document | Common For | Notes |
|---|---|---|
| US Passport or US Passport Card | US citizens and nationals | Most commonly presented List A document. Must be unexpired. |
| Permanent Resident Card (Green Card, Form I-551) | Lawful permanent residents | Must be unexpired. Do not reverify when card expires (permanent residents have ongoing work authorization). |
| Employment Authorization Document (EAD, Form I-766) | Work-authorized noncitizens (asylum, DACA, TPS, H-4 EAD, etc.) | Must be unexpired. Must reverify when it expires. |
| Foreign passport with Form I-94 (Arrival/Departure Record) | Noncitizens with temporary work authorization | Must have a specific endorsement or be accompanied by I-94 showing work-authorized status. |
| Passport from Federated States of Micronesia (FSM) or Republic of Marshall Islands (RMI) with I-94 | Citizens of FSM or RMI | Specific Compact of Free Association provision. |
| Foreign passport with Form I-551 stamp or MRIV | Permanent residents awaiting card issuance | Temporary evidence of permanent residence. |
List B: Documents That Prove Identity Only
If the employee does not present a List A document, they must present one List B document (identity) plus one List C document (work authorization).
| Document | Notes |
|---|---|
| Driver's license or state-issued ID card with photograph | Most commonly presented List B document. Must be issued by a state or outlying territory. Must be unexpired. |
| ID card issued by federal, state, or local government with photograph | Includes military ID (for dependents), government employee ID, city ID cards |
| School ID card with photograph | For employees under 18 who do not have a driver's license |
| Voter registration card | Must include name; does not need photograph in all cases |
| US military card or draft record | Active duty, reserve, or retired military identification |
| Military dependent's ID card | Issued to spouses and children of military members |
| US Coast Guard Merchant Mariner Document (MMD) | For maritime workers |
| Native American tribal document | Official tribal identification |
| Canadian driver's license or ID card (for Canadian citizens employed in the US) | Specific provision for Canadian workers |
List C: Documents That Prove Work Authorization Only
| Document | Notes |
|---|---|
| Social Security card (unrestricted, no employment restrictions printed on card) | Most commonly presented List C document. Cards marked 'NOT VALID FOR EMPLOYMENT' or 'VALID FOR WORK ONLY WITH DHS AUTHORIZATION' are not acceptable as List C documents. |
| Birth certificate (US) | Issued by a state, county, municipality, or outlying territory. Hospital birth certificates are not acceptable. |
| US Citizen ID Card (Form I-197) | Older document, rarely presented |
| Identification Card for Use of Resident Citizen in the United States (Form I-179) | Older document, rarely presented |
| Employment Authorization Document issued by DHS | If not used as a List A document, certain EADs can serve as List C documents |
The USCIS Handbook for Employers (M-274) provides detailed guidance on each document including images and acceptable variations. When in doubt about a specific document, the M-274 is the definitive reference.
The 3-Business-Day Rule
The employer must complete Section 2 of Form I-9 (examining documents and signing the employer certification) within 3 business days of the employee's first day of work for pay. The first day of work is Day 1, not Day 0.
| First Day of Work | Deadline to Complete Section 2 | What Happens If Missed |
|---|---|---|
| Monday | End of business Wednesday | I-9 violation: $288-$2,861 penalty per form |
| Wednesday | End of business Friday | Same penalty range |
| Thursday | End of business Monday (next business day after weekend) | Weekends and holidays do not count as business days |
| Employee works 3 days then quits | Still must have been completed by Day 3 | Even if the employee leaves, the I-9 must be completed for the days they worked |
Employer Responsibilities When Examining Documents
What You Cannot Do (Anti-Discrimination Rules)
| Prohibited Action | Why It Is Illegal | What to Do Instead |
|---|---|---|
| Request specific documents (e.g., 'bring your passport') | Document abuse: the employee chooses which documents to present. Specifying documents discriminates based on citizenship or national origin. | Provide the Lists of Acceptable Documents to the employee and let them choose. |
| Require more documents than the form requires | Over-documentation: requiring extra proof from some employees suggests discrimination. | Accept one List A document, or one List B + one List C. Nothing more. |
| Reject documents that reasonably appear genuine | Unfair documentary practices under INA Section 274B. | If the document looks real and relates to the person, accept it. You are not an immigration officer. |
| Treat employees differently based on appearance, accent, or name | National origin or citizenship status discrimination. | Apply the same I-9 process to every employee. Same timeline, same document acceptance standard, same examination procedure. |
| Reverify US citizens or permanent residents when their documents expire | US citizens and permanent residents have ongoing work authorization. Reverifying them is unnecessary and potentially discriminatory. | Only reverify when work authorization has an expiration date (List A documents with expiration, EADs, temporary work visas). |
| Use I-9 to screen applicants before hire | Form I-9 is completed after the employment offer is accepted, not during the application or interview process. | Complete I-9 on or after the first day of work (Section 1 can be done at preboarding after offer acceptance). |
The anti-discrimination rules are enforced by the Immigrant and Employee Rights Section (IER) of the Department of Justice, not by USCIS. Penalties for document abuse and unfair documentary practices are separate from and in addition to I-9 form violations. The disparate treatment guide covers the broader framework for preventing differential treatment of employees based on protected characteristics.
How Long to Keep I-9 Forms
The retention formula: keep the I-9 for 3 years after the date of hire or 1 year after the date of termination, whichever is later.
| Hire Date | Termination Date | 3 Years from Hire | 1 Year from Termination | Keep Until (Later Date) |
|---|---|---|---|---|
| Jan 1, 2023 | Dec 31, 2024 | Jan 1, 2026 | Dec 31, 2025 | Jan 1, 2026 |
| Jun 15, 2022 | Jun 15, 2027 | Jun 15, 2025 | Jun 15, 2028 | Jun 15, 2028 |
| Mar 1, 2024 | Still employed | Mar 1, 2027 | N/A (still employed) | At least Mar 1, 2027 (recalculate when they leave) |
| Jan 1, 2020 | Feb 1, 2021 | Jan 1, 2023 | Feb 1, 2022 | Jan 1, 2023 (can destroy after this date) |
ICE can request I-9 forms for all current employees with 3 business days notice. If you cannot produce a form, it is treated as a violation. The employee records retention guide covers how I-9 retention fits into your broader recordkeeping obligations.
When to Reverify (Section 3)
| Situation | Reverification Required? | What to Do |
|---|---|---|
| Employee's Employment Authorization Document (EAD) expires | Yes | Complete Section 3 with the new document information before the expiration date. Do not let the employee continue working without valid authorization. |
| Employee's work visa (H-1B, L-1, etc.) expires | Yes | Complete Section 3 with updated authorization. If the employee has a timely-filed extension, they may continue working under the 240-day rule. |
| Employee's permanent resident card (green card) expires | No | Permanent residents have ongoing work authorization. The card expiration does not affect work authorization. Do not reverify. |
| US citizen's passport expires | No | US citizens have permanent work authorization. Never reverify a US citizen. |
| Employee legally changes their name | Not required, but recommended | You may update Section 3 with the new name. Not a legal requirement, but helps maintain accurate records. |
| Employee is rehired within 3 years of original I-9 | Not a new I-9, but complete Section 3 | If the original I-9 is still valid and retained, complete Section 3 for the rehire instead of a new form. |
Penalties for I-9 Violations
| Violation Type | First Offense | Second Offense | Third+ Offense |
|---|---|---|---|
| Substantive or uncorrected technical violations (per form) | $288 - $2,861 | $288 - $2,861 | $288 - $2,861 |
| Knowingly hiring an unauthorized worker | $698 - $5,579 | $5,579 - $11,162 | $8,369 - $27,894 |
| Continuing to employ a known unauthorized worker | $698 - $5,579 | $5,579 - $11,162 | $8,369 - $27,894 |
| Document fraud (using fraudulent documents) | Criminal penalties | Criminal penalties | Criminal penalties |
| Unfair documentary practices / document abuse | $196 - $1,966 per individual | Additional penalties | Additional penalties |
The penalty amounts are adjusted annually for inflation. The figures above reflect current enforcement levels. Penalties are assessed per form, meaning a company with 20 I-9 violations could face $5,760 to $57,220 in fines from form errors alone. The E-Verify program is an additional verification step that some states require; it does not reduce I-9 penalties but may demonstrate good-faith compliance. The HR rules and regulations guide covers how I-9 fits into the broader federal compliance framework.
Common I-9 Mistakes at Small Businesses
| Mistake | Why It Happens | The Fix |
|---|---|---|
| Telling the employee which documents to bring | Owner wants to be helpful: 'just bring your passport' | Provide the Lists of Acceptable Documents. Say: 'bring original documents from this list.' Let them choose. |
| Missing the 3-business-day deadline | Day 1 is hectic, paperwork gets pushed to 'next week' | Complete Section 1 during preboarding. Examine documents on Day 1. Set a calendar reminder for the deadline. |
| Accepting a driver's license as the only document | Owner does not understand the List A / List B+C structure | Driver's license = List B (identity only). Must also accept a List C document (Social Security card, birth certificate). |
| Not completing the form at all for short-term employees | Owner assumes temps or part-timers do not need I-9 | Every employee needs I-9 regardless of hours, duration, or employment type. |
| Storing I-9 forms in the employee's general personnel file | Owner keeps all documents together for convenience | Store I-9 forms separately. They contain immigration status information that managers should not access. |
| Reverifying US citizens when their passport expires | Owner does not understand the reverification rules | Never reverify US citizens or permanent residents. Only reverify when temporary work authorization expires. |
| Making photocopies only for foreign-born employees | Owner wants 'extra documentation' for noncitizen employees | Either photocopy documents for all employees or for none. Selective copying is discrimination. |
| Backdating I-9 forms discovered during self-audit | Owner finds missing I-9 forms and tries to fill them in with the original hire date | Complete the form with today's date and note 'completed during self-audit.' Backdating is fraud. |
Frequently Asked Questions
What is I-9 documentation?
I-9 documentation refers to the documents that an employee presents to their employer to prove their identity and authorization to work in the United States. Every employer must verify these documents by completing Section 2 of Form I-9 (Employment Eligibility Verification) within 3 business days of the employee's first day of work. Acceptable documents are divided into three lists: List A documents prove both identity and work authorization (e.g., US passport, permanent resident card), List B documents prove identity only (e.g., driver's license), and List C documents prove work authorization only (e.g., Social Security card). The employee presents either one List A document or one List B document plus one List C document.
What are the 3 acceptable types of I-9 documents?
I-9 documents are organized into three lists. List A documents establish both identity and employment authorization (US passport, permanent resident card, foreign passport with I-94, employment authorization document). List B documents establish identity only (driver's license, state-issued ID card, school ID with photograph, voter registration card, US military card). List C documents establish employment authorization only (unrestricted Social Security card, birth certificate, US citizen ID card, employment authorization document issued by DHS). The employee chooses which documents to present. The employer cannot specify which documents to accept.
Is a driver's license enough for I-9?
No. A driver's license alone is not sufficient for I-9 verification. A driver's license is a List B document, which proves identity only. The employee must also present a List C document (such as an unrestricted Social Security card or birth certificate) to prove work authorization. Alternatively, the employee can present a single List A document (such as a US passport) that proves both identity and work authorization, in which case no driver's license is needed.
How long does an employer have to complete Form I-9?
The employer must complete Section 2 of Form I-9 within 3 business days of the employee's first day of work for pay. The first day of work is day 1, and the employer has until the end of business day 3 to examine documents and complete Section 2. For example, if an employee starts work on Monday, the employer must complete Section 2 by the end of business on Wednesday. The employee may complete Section 1 before their first day of work (during preboarding), but this is not required.
Can an employer tell an employee which I-9 documents to bring?
No. The employer cannot specify or request particular documents. The employee chooses which acceptable documents to present from the Lists of Acceptable Documents. Requiring specific documents (for example, demanding a passport or green card) is a form of national origin or citizenship status discrimination under the Immigration and Nationality Act, even if the employer's intent is not discriminatory. The employer can provide the employee with the Lists of Acceptable Documents so they know what is accepted, but the choice belongs to the employee.
What happens if an employee cannot provide I-9 documents within 3 days?
If an employee cannot present acceptable documents within 3 business days, the employee must present a receipt for a replacement document (lost, stolen, or damaged). The receipt is valid for 90 days, during which the employee must present the actual document. If the employee presents a receipt, the employer notes the receipt in Section 2 and updates it when the actual document is presented. If the employee cannot present any document or receipt within 3 business days, the employer should not continue to employ the individual, as this creates I-9 non-compliance.
How long must an employer keep I-9 forms?
Employers must retain Form I-9 for 3 years after the date of hire or 1 year after the date of termination, whichever is later. For example, if an employee was hired on January 1, 2023 and terminated on June 1, 2025, the retention calculation is: 3 years from hire = January 1, 2026, and 1 year from termination = June 1, 2026. The employer must keep the form until June 1, 2026 (the later date). Forms can be stored on paper, microfilm, microfiche, or electronically.
What are the penalties for I-9 violations?
Penalties for I-9 violations range from $288 to $2,861 per form for substantive or uncorrected technical violations (first offense). For second offenses, penalties range from $288 to $2,861. For three or more offenses, penalties range from $288 to $2,861. For knowingly hiring or continuing to employ unauthorized workers, penalties range from $698 to $5,579 (first offense), $5,579 to $11,162 (second offense), and $8,369 to $27,894 (third offense). Criminal penalties are possible for pattern or practice violations. ICE conducts I-9 audits with 3 business days notice, and the employer must produce all I-9 forms for current employees.
Does E-Verify replace Form I-9?
No. E-Verify is an additional step, not a replacement for Form I-9. Employers who use E-Verify must still complete Form I-9 for every employee. E-Verify is an electronic system that compares information from the employee's Form I-9 to government records to confirm employment authorization. E-Verify is mandatory for federal contractors and in some states (Arizona, Mississippi, Alabama, South Carolina, and others require it for some or all employers). For most private employers, E-Verify is voluntary at the federal level.
Can I-9 documents be expired?
For List A documents: most must be unexpired at the time of presentation, but an expired US passport can be accepted as a List B identity document (not as a List A document). For List B documents: the document generally must be unexpired, but some documents without expiration dates (such as certain Native American tribal documents) are acceptable. For List C documents: an unrestricted Social Security card and birth certificate have no expiration date and are always acceptable. Employment Authorization Documents (EADs) must be unexpired. When in doubt, refer to the USCIS Handbook for Employers (M-274) for the specific document.