In support of this enforcement activity, in May 2010, ICE released the "ICE Guide to Administrative Form I-9 Inspections and Civil Monetary Penalties." That agency field manual provides insight into the administrative procedures and penalty scheme for administrative inspections for the agency’s special agents and forensic auditors. This "fine guideline" only briefly discusses the remedial impact of "auditing" a company's Forms I-9 PRIOR to ICE serving a Notice of Inspection on the company.
There have been countless seminars over the last several years talking about the need for Human Resource professionals to "audit" your company's Forms I-9, and even describing how this auditing should be done. Here is the bad news--companies that audit their own Forms I-9 are not significantly reducing the potential fines, because much of this audit work perpetuates previous errors made by the same person who is now auditing the forms.
In a Seminar on work site enforcement issues, an ICE representative made quite clear that self-audits typically result in a more difficult situations for the employer than if an audit is done by a qualified, experienced, independent auditor, such as an attorney. Examples of massive mistakes made by self auditing after attending a "training session" include: redoing all the Forms I-9 and throwing away the originals, separating copies of documents from Forms I-9 and throwing them away, making changes to Forms I-9 without initialing and dating the Forms, and inserting backdated information in Forms I-9 making them appear to be completed timely. Each one of these "mistakes" in auditing has lead to massive fines by USCIS and even findings of unlawful employment of aliens.
The complicated nature of auditing Forms I-9 was made even more apparent on February 23, 2010, when ICE provided policy guidance concerning the applicability of the Federal Omnibus five-year statute of limitations provision in employer sanctions cases. Therefore, Form I-9 audits require the auditor to make determinations as to the running of the statute of limitations for paperwork violations (from the correction of the I-9’s), timeliness violations (from the second and fourth day of employment) and knowingly hiring or continuing to employ violations (from the termination of the employee). ICE also reiterated its continuing use of the Virtue Memorandum’s interpretation of the 10 day notice paperwork good faith defense.
The bottom line on auditing Forms I-9 is this--Much like completing the world's most complicated one-page form, auditing the Form I-9 is fraught with potential for increasing, rather than decreasing one's potential for fines, and best left to those with substantial experience in the field. A company's best practice is to complete a yearly audit of the Forms I-9 using an immigration attorney with experience in Form I-9 compliance. Any other type of audit will always leave a company wondering whether or not the audit done in-house actually left their employer compliance program in worse condition.