When you hire a new employee in the U.S., you’re not just bringing someone onto your team—you’re also taking on a legal responsibility to verify that person is 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 make up the backbone of U.S. work authorization rules, including the requirement that every new hire complete a Form I-9.
What the INA and IRCA require
The INA, originally passed in 1952, is the foundation of modern U.S. immigration law. The IRCA, passed in 1986, amended the INA to specifically address unauthorized employment. Under these laws:
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Employers must verify the identity and work authorization of all new employees.
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Form I-9 must be completed within three business days of hire.
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Employees can present a valid document from List A (identity and work authorization, like a passport) or a combination of documents from List B and C (such as a driver’s license + Social Security card).
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Employers must keep I-9s for three years after the hire date or one year after the employee leaves—whichever is later.
Some employers may also be required (by state law, federal contracts, or choice) to use E-Verify, an online system that checks employee information against federal databases.
Why this matters
Hiring someone who isn’t authorized to work—or failing to complete I-9s properly—can trigger serious fines and penalties. At the same time, employers must avoid discrimination by applying I-9 rules consistently and not demanding more documents than the law requires.
Common mistakes employers make
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Accepting expired documents (not allowed)
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Forgetting to reverify work authorization when temporary documents expire
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Storing I-9s incorrectly (mixing them in with personnel files instead of keeping them separate)
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Failing to provide I-9 forms for remote hires within the required timeframe
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Treating workers differently based on citizenship status or national origin (a violation of anti-discrimination rules)
Penalties for violations
Employers that don’t comply can face:
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Paperwork fines for incomplete or incorrect I-9s
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Civil fines ranging from hundreds to thousands of dollars per violation
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Criminal penalties for knowingly hiring unauthorized workers
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Loss of government contracts for serious or repeated violations
How to stay compliant
- Train HR staff and hiring managers on I-9 rules.
- Use a consistent process for all new hires.
- Keep I-9 forms and supporting documents stored securely and separately.
- Audit your I-9 files regularly to catch and correct errors.
- Track expiration dates for temporary work authorization.
How Kubera HR Solutions can help
At Kubera HR Solutions, we help employers audit I-9 forms, train staff, and set up compliance systems so you never have to worry about falling short on work authorization rules. With our guidance, you can avoid costly fines while building a hiring process that’s consistent, fair, and fully compliant with federal law.