When you hire someone in the U.S., it’s not just about finding the right skills—it’s also about making sure they’re legally authorized to work. That responsibility comes from two major federal laws: the Immigration and Nationality Act (INA) and the Immigration Reform and Control Act (IRCA). Together, they set the ground rules for work eligibility verification and prevent discrimination in hiring.
A quick history
The INA was first passed in 1952 and is the foundation of modern U.S. immigration law. It covers visas, green cards, citizenship, and work authorization. The IRCA, passed in 1986, amended the INA to specifically target the issue of unauthorized employment—making it illegal for employers to knowingly hire people who aren’t authorized to work in the U.S.
What employers must do
The IRCA requires every employer to verify the identity and work eligibility of anyone they hire. That’s where the Form I-9 comes in.
- Form I-9: Must be completed for every new employee—citizen or noncitizen—within the first three business days of work.
- Acceptable documents: Employees can present either one document that proves both identity and work eligibility (like a U.S. passport) or a combination (like a driver’s license + Social Security card).
- Retention: Employers must keep I-9s for three years after the hire date or one year after employment ends—whichever is later.
- E-Verify: In many states and industries, employers also use E-Verify, an online system that checks eligibility against federal databases.
Anti-discrimination rules
While employers must verify eligibility, the IRCA also makes it illegal to discriminate based on citizenship or national origin. That means:
- You can’t require more documents than the I-9 rules allow.
- You can’t prefer citizens over authorized noncitizens unless required by law, regulation, or government contract.
- You can’t retaliate against workers who assert their rights under these laws.
Penalties for noncompliance
Getting this wrong can be expensive. Employers may face:
- Civil fines for paperwork errors or knowingly hiring unauthorized workers
- Criminal penalties for patterns of intentional violations
- Debarment from government contracts for serious violations
Fines can range from a few hundred dollars per mistake to tens of thousands, especially if a company is caught knowingly hiring unauthorized workers.
Common mistakes employers make
- Accepting expired documents for the I-9.
- Treating I-9s as a one-time paperwork task instead of keeping them up to date.
- Applying rules inconsistently across workers, which can trigger discrimination claims.
- Failing to reverify work authorization when temporary documents expire.
- Over-documenting (asking for more than required), which can be as risky as under-documenting.
How to stay compliant
- Train HR and hiring managers – Everyone handling I-9s should know the rules.
- Use a checklist – Keep the process consistent across all hires.
- Audit your I-9 files – Regular internal audits can catch errors before the government does.
- Know your state rules – Some states require E-Verify for all or certain employers.
- Separate I-9 files from personnel files – Makes audits and reviews cleaner.
How Kubera HR Solutions can help
At Kubera HR Solutions, we help businesses audit their I-9s and hiring practices to make sure every worker is properly documented—and that you’re not accidentally crossing into discrimination territory. From training to full compliance reviews, our team helps employers protect themselves from costly fines and lawsuits.