US immigration law compliance governs how employers hire and manage foreign workers in the United States, as well as how businesses verify that employees are legally authorized to work.

Employers have obligations under the Immigration and Nationality Act (INA), including the employer sanctions provisions introduced by the Immigration Reform and Control Act (IRCA). These rules require employers to complete Form I-9 for covered employees hired for employment in the United States and prohibit the knowing hire or continued employment of workers who are not authorized to work.

Businesses sponsoring foreign workers also have separate compliance duties under the relevant immigration category. H-1B employers, for example, are subject to Labor Condition Application requirements, wage obligations and rules governing the terms and location of employment. L-1 employers must continue to meet the requirements relating to the qualifying corporate relationship, the employee’s qualifying role and the US business. PERM is a separate Department of Labor labor certification process used for many employment-based permanent residence cases, rather than a visa category.

Failure to comply with US immigration law can result in civil monetary penalties, back wage liability, petition denial or revocation, debarment from certain immigration programs and, where serious or deliberate misconduct is involved, criminal investigation or prosecution. Separate consequences may also arise for individual workers, including loss of immigration status, visa problems or refusal of admission to the United States.

Employers should therefore treat immigration compliance as an ongoing employment and operational issue rather than something that ends once a visa petition has been approved. Form I-9 records, work authorization, petition conditions, employee duties, work locations and visa expiration issues all need to be managed throughout the employment relationship.

Example Scenario

Imagine you are a UK business owner who has secured a long-term contract in Los Angeles worth several million dollars. Delivering the contract requires you and several highly skilled employees to spend significant periods in the United States working closely with the client.

You register a California business entity and open a small serviced office. The client has imposed a demanding deadline, so employees are sent to the United States using ESTA under the Visa Waiver Program without first assessing whether their planned activities amount to permissible business visitor activity or employment.

The employees begin carrying out productive project work for the client. Some are subsequently placed on the US entity’s payroll, but the business has not completed the immigration analysis or Form I-9 process required for employment in the United States.

The exposure can arise in several ways. An employee may be questioned by Customs and Border Protection on a later entry and refused admission because their travel pattern and activities are inconsistent with business visitor status. The employer could face an Immigration and Customs Enforcement Form I-9 inspection if workers have been hired for employment in the United States. A later employment-based petition could also attract scrutiny of the company’s previous immigration practices.

None of those events automatically results in an immediate finding of fraud or an immediate fine. Different agencies exercise different powers and employers normally have procedural rights during enforcement action. However, unauthorized employment, deficient employment eligibility records or false statements made to immigration authorities can expose both the business and individual employees to serious consequences.

The commercial impact can extend beyond the immigration case itself. Employees may become unable to enter or work in the United States, project deadlines may be missed and a client may reconsider its relationship with a business facing immigration compliance problems.

Companies deploying personnel to the United States should therefore establish whether each trip falls within permitted business visitor activity or requires work-authorized status before travel takes place.

Areas of Common Non-Compliance and Penalties

Employer immigration compliance covers several separate legal regimes. Form I-9 requirements, employment-based visa rules, Department of Labor obligations and business visitor restrictions should not be treated as interchangeable.

The consequences also vary according to the violation. A paperwork error on a Form I-9 is different from knowingly employing an unauthorized worker, while an H-1B wage violation is governed by a different enforcement framework again.

Form I-9: Employment Eligibility Verification

Under section 274A of the INA, employers must complete Form I-9 for employees hired for employment in the United States, subject to limited exceptions.

The requirement applies regardless of whether the employee is a US citizen, lawful permanent resident or foreign national with temporary employment authorization. Employers should not assume that Form I-9 is only required for foreign workers.

The employee generally completes Section 1 no later than their first day of employment. The employer generally completes Section 2 within three business days of the employee’s first day of employment.

The employee chooses which acceptable documents to present from the Form I-9 Lists of Acceptable Documents. Employers should not demand a particular document, request more documents than the form requires or impose different documentary requirements because of citizenship, immigration status or national origin.

The employer must examine the documents presented and determine whether they reasonably appear to be genuine and relate to the employee. Examination does not create a general federal requirement to photocopy every employee’s documents.

An employer may choose to retain copies of documents, subject to consistent practices and applicable rules. Additional copying and retention requirements can apply where an employer uses the DHS-authorized alternative procedure for remote document examination or in certain E-Verify cases.

For qualifying employers enrolled and in good standing in E-Verify, the DHS alternative procedure can permit remote examination of Form I-9 documentation where all applicable requirements are met. Employers that do not qualify for that procedure can still use an authorized representative to carry out the required document examination on their behalf.

Employers must retain Form I-9 for as long as the employee works for the business. After employment ends, the form generally must be retained until the later of three years after the employee’s date of hire or one year after employment ends.

Form I-9 Penalties

Form I-9 failures can produce civil monetary penalties even where the employer did not deliberately employ an unauthorized worker.

For penalties assessed under the current 2025 levels, which continue to apply during 2026 because the federal government did not make the usual 2026 inflation adjustment, substantive and uncorrected technical Form I-9 violations can attract penalties ranging from $288 to $2,861 per relevant individual.

Separate and substantially higher penalties apply where an employer knowingly hires, recruits or refers for a fee an unauthorized worker or knowingly continues to employ an unauthorized worker.

Current penalty ranges are $716 to $5,724 for a first order, $5,724 to $14,308 for a second order and $8,586 to $28,619 for subsequent orders.

The amount imposed in a specific case will depend on the applicable enforcement framework and facts. Employers should not assume that each individual mistake written on one Form I-9 automatically produces a separate maximum-range penalty.

Criminal sanctions can also apply where an employer engages in a pattern or practice of knowingly hiring or continuing to employ unauthorized workers. Fraudulent documents, false statements and other deliberate conduct can create additional exposure under separate federal laws.

Form I-9 Compliance Mistakes

Common problems include failing to complete Form I-9 on time, leaving required fields incomplete, accepting documents that do not satisfy the Lists of Acceptable Documents, missing required reverification and failing to retain forms for the required period.

Over-documentation can also create legal risk. Employers should not request a green card from a lawful permanent resident simply because of their immigration status, demand an Employment Authorization Document from every foreign national or reverify documents where reverification is not required.

There is no general Form I-9 rule requiring an employer to report an employee to DHS whenever the employer believes that the employee may no longer be authorized to work. The employer must, however, comply with the prohibition on knowingly continuing to employ an unauthorized worker. Employers using E-Verify must also follow the separate procedures that apply to E-Verify case results.

Reverification and Expiring Work Authorization

Employers need systems for identifying employees whose temporary employment authorization requires reverification, but the date printed on an immigration document does not always tell the full story.

Certain employment authorization documents can benefit from an automatic extension when the employee has filed an eligible renewal application. Some nonimmigrant categories authorize employment incident to status and different evidence may apply.

US citizens and noncitizen nationals are not subject to employment authorization reverification. Employers also should not reverify an employee merely because a Permanent Resident Card or List B identity document expires.

When reverification is required, employees generally have the right to choose any valid List A or List C document that satisfies the Form I-9 requirements. Employers should not insist that the employee renew or reproduce the same document originally presented.

H-1B Compliance

The H-1B visa carries substantial employer compliance obligations that continue after USCIS approves the petition.

An H-1B employer must generally pay the worker at least the required wage, which is the higher of the applicable prevailing wage or the employer’s actual wage for similarly employed workers with similar experience and qualifications.

Employer-caused nonproductive time can still trigger the H-1B wage obligation. An employer cannot generally stop paying an H-1B employee simply because there is temporarily no project work available. This is commonly referred to as prohibited unpaid benching.

Changes to the employee’s worksite, duties, hours or other terms of employment can create immigration consequences. Depending on the nature of the change, the employer may need to assess whether a new Labor Condition Application, amended petition or other compliance action is required before the change takes effect.

H-1B-dependent employers and employers found to be willful violators can also face additional statutory attestations and restrictions relating to US worker displacement and recruitment. These additional requirements do not apply in the same way to every H-1B employer.

USCIS has express authority to conduct H-1B compliance reviews and site visits. A visit can relate to the petitioner’s own premises or another location where the beneficiary works. Employers should therefore be able to demonstrate that the position, work location, duties and employer-employee relationship are consistent with the approved petition and applicable regulations.

Failure to cooperate with a USCIS compliance review can itself have immigration consequences and may support adverse action on a petition.

L-1 Compliance

L-1 visa compliance is governed by different requirements from the H-1B category.

An L-1 case depends on a qualifying relationship between the foreign and US entities, qualifying employment abroad and qualifying US employment as an executive, manager or employee with specialized knowledge.

Employers must continue to meet the requirements supporting the petition. Changes to the corporate structure, ownership, employee’s duties or business operations can affect continued eligibility.

A lack of established US operations is not automatically an L-1 violation. The L-1 rules expressly provide for qualifying new-office petitions where a foreign business is establishing a new operation in the United States.

New-office cases are subject to additional requirements and are initially approved for a limited period. The business must then demonstrate that the US operation has developed sufficiently to support the qualifying L-1 role when seeking an extension.

Consequences of Work Visa Non-Compliance

Employment-based visa violations can include material discrepancies between the petition and the employee’s actual work, failure to comply with required wage obligations, prohibited unpaid benching, false documentation, undisclosed material worksite changes and failure to maintain the conditions supporting the approved immigration category.

Consequences depend on the particular statute and program. They can include back wages, civil monetary penalties, petition denial or revocation and temporary debarment from immigration programs.

Debarment periods vary according to the immigration program, the nature of the violation and the applicable statutory provisions. H-1B sanctions, for example, vary according to the type and seriousness of the violation.

Misuse of the Visa Waiver Program for Business or Work

The Visa Waiver Program can be highly useful for legitimate temporary business travel, but it does not give foreign employees permission to work in the United States.

Eligible citizens or nationals of participating countries can seek admission to the United States under the Visa Waiver Program for business or tourism for up to 90 days without first obtaining a visa. Travelers normally require approved Electronic System for Travel Authorization, or ESTA, authorization before travel.

ESTA is a travel authorization. It is not a visa and it is not a work permit.

Business visitors using the Visa Waiver Program can generally undertake the same type of permissible business activities contemplated for B-1 visitors. Examples include consulting with business associates, attending conferences or business meetings, negotiating contracts and undertaking certain forms of short-term training.

The line between permissible business activity and unauthorized employment depends on what the traveler will actually do in the United States. Calling a trip a meeting, project visit or business trip does not determine its immigration classification.

A visitor generally cannot use B-1 or Visa Waiver Program admission to enter the US labor market or carry out ordinary productive employment that would require work-authorized status.

Some narrowly defined activities can qualify for B-1 treatment even though they involve more than meetings. Examples under State Department guidance can include certain installation, servicing, repair or training activities connected with equipment purchased from overseas, but only where the specific requirements for the exception are met.

Businesses should therefore assess the actual proposed activities, contractual arrangements, source of remuneration and purpose of the trip rather than relying on job titles or the short duration of the visit.

Frequent Business Travel and Border Scrutiny

Frequent travel to the United States is not automatically unlawful. A pattern of lengthy or repeated business visits can, however, prompt Customs and Border Protection to examine whether the traveler is genuinely seeking temporary admission for permitted business activity or is effectively working or living in the United States.

Entry under the Visa Waiver Program is not entry on a business visa. References to employees making repeated trips on “business visas” should therefore distinguish between travelers using B-1 visas and travelers seeking visa-free admission under the Visa Waiver Program.

Where a traveler is found to be seeking unauthorized employment, consequences can include refusal of admission and later difficulties obtaining ESTA authorization or a visa. More serious consequences can arise where false statements or material misrepresentations have been made to immigration officers.

Employers should not assume that previous successful entries establish that the same activities are lawful. Each application for admission is determined by CBP and a past admission does not guarantee a future admission.

ICE Form I-9 Inspections

ICE has authority to inspect employer Form I-9 records as part of worksite enforcement.

A standard Form I-9 inspection normally begins with service of a Notice of Inspection. Employers are generally entitled to at least three business days before they are required to produce the requested Forms I-9.

The three-business-day period should not be confused with a rule that applies to every immigration site visit or law enforcement action. USCIS petition-compliance site visits operate separately from ICE Form I-9 inspections. Investigations involving warrants or other law enforcement powers can also follow different procedures.

After reviewing the records, ICE may identify technical or procedural failures, substantive violations or potential knowing employment of unauthorized workers. The agency can issue notices depending on its findings, including a Notice of Suspect Documents or Notice of Intent to Fine.

Employers have procedural rights and enforcement normally involves a process rather than an immediate finding of guilt at the worksite.

USCIS Worksite Visits

USCIS also conducts administrative site visits and other compliance review activity in connection with employment-based petitions.

A USCIS site visit is not the same process as an ICE Form I-9 inspection. USCIS officers may seek to verify information contained in a petition, including whether the employer exists and operates at the stated location, whether the beneficiary works there and whether the employee’s duties and working arrangements match the representations made to USCIS.

USCIS site visits can be unannounced. Employers should therefore have a protocol for reception staff, HR personnel and managers so that an officer is directed to an appropriate company representative without unnecessary delay.

Staff should not guess at answers or provide inaccurate information. Where a question cannot be answered reliably, it is better to identify the person who can provide the requested information.

Material discrepancies identified during a site visit can result in further USCIS action, including a request for evidence, notice of intent to deny or notice of intent to revoke, depending on the stage of the case and the facts involved.

Preparing for an Immigration Compliance Inspection

Employers should maintain an immigration compliance response plan before an inspection or site visit occurs.

Form I-9 records should be stored so they can be identified and produced within the required period. Immigration petition records should also be maintained in a way that allows the business to confirm the employee’s approved role, work location and petition validity.

Internal Form I-9 audits can identify deficiencies before they become enforcement problems, but corrections must be made transparently and in accordance with Form I-9 rules.

An employer should never backdate a Form I-9 or alter a record to make it appear that an action was taken earlier than it actually was. Corrections should make clear what was changed, when the correction was made and who made it where required.

Receiving a Notice of Inspection should trigger immediate review by the appropriate internal team and, where appropriate, immigration counsel. The employer should establish the deadline, preserve relevant records and identify whether any defects can lawfully be corrected.

ICE can provide an additional opportunity to correct certain identified technical or procedural failures during the inspection process. That procedure does not allow an employer to disguise substantive violations or reconstruct records inaccurately.

Immigration Compliance and Discrimination

Employers can breach immigration law not only by failing to verify employment authorization but also by applying the verification rules unlawfully.

The INA prohibits certain forms of citizenship status discrimination, national origin discrimination and unfair documentary practices.

During Form I-9 completion, an employee generally chooses which acceptable documents to present. An employer should not ask a lawful permanent resident specifically for a green card, require a foreign national to provide a DHS-issued document when other acceptable evidence has been provided or demand additional documents because an employee appears foreign.

The same principle applies during reverification. Employers should follow the Form I-9 rules and allow employees to choose acceptable evidence rather than requiring a particular replacement immigration document.

Immigration compliance procedures should therefore be designed around both employment authorization requirements and anti-discrimination obligations.

Practical Employer Compliance

Companies employing foreign nationals in the United States should maintain a coordinated immigration compliance system covering Form I-9, immigration status and petition requirements.

HR teams should know which employees require Form I-9 reverification and which do not. Records should distinguish between visa expiration dates, I-94 expiration dates, petition validity, Employment Authorization Document validity and Form I-9 reverification dates because those dates do not always have the same legal effect.

A visa stamp is principally a travel document used to seek admission. Its expiration does not, by itself, determine how long an employee may remain or work in the United States after admission.

Employers sponsoring workers should also monitor whether the employee’s actual job remains consistent with the immigration filing. Promotions, restructuring, reductions in hours, moves to new worksites, remote working arrangements, mergers and acquisitions can all require immigration review depending on the visa category and facts.

Foreign businesses sending employees to the United States for brief assignments should review travel plans before departure. The short duration of a visit does not make productive work permissible under B-1 or the Visa Waiver Program.

Regular training for HR, mobility teams, managers and reception staff can reduce risk where responsibility for immigration compliance is spread across different parts of the business.

Need Assistance?

Employers using foreign workers in the United States should review their procedures for Form I-9 completion, reverification, document retention, work visa compliance and business visitor travel.

Employment-based categories such as H-1B, L-1, E-2 and O-1 each carry their own eligibility and compliance requirements. Employers should also assess material changes to a sponsored worker’s duties, location or employment arrangements before implementing them.

Worksite enforcement can involve different federal agencies with different powers. A company response plan should distinguish between an ICE Form I-9 inspection, a USCIS petition-compliance visit and a broader law enforcement investigation.

To discuss US immigration law compliance for your organization, contact our US attorneys.

Immigration Compliance FAQs

What is immigration law compliance for employers?

US immigration law compliance requires employers to comply with employment eligibility verification rules and, where applicable, the conditions attached to immigration sponsorship. It includes Form I-9 completion and retention, lawful reverification, monitoring employment authorization and complying with the requirements of sponsored visa categories.

What is Form I-9 and why is it important?

Form I-9 is used to verify the identity and employment authorization of employees hired for employment in the United States. Covered employers must complete and retain the form even where the employee is a US citizen or lawful permanent resident.

Does an employer have to copy an employee’s Form I-9 documents?

There is no general federal rule requiring every employer to retain copies of all documents presented for Form I-9. Employers may generally choose to make copies, but additional requirements apply in certain E-Verify situations and where an eligible employer uses the DHS alternative procedure for remote document examination.

What are the penalties for Form I-9 violations?

Current civil penalties for substantive and uncorrected technical Form I-9 violations can range from $288 to $2,861 per relevant individual. Higher penalties apply to knowingly hiring or continuing to employ unauthorized workers, with the range increasing for repeat violations.

What should an employer do if it receives an I-9 audit notice?

An employer receiving a Notice of Inspection should identify the response deadline, preserve the requested records and review the forms before production. Corrections should only be made in accordance with Form I-9 rules and should not be backdated or presented as though they had been made earlier.

Does ICE have to give an employer three days’ notice?

A standard ICE Form I-9 inspection normally provides at least three business days to produce the requested forms. That requirement should not be assumed to apply to every immigration enforcement action, USCIS site visit or law enforcement investigation.

Can an employer fire a worker whose work authorization expires?

An employer cannot knowingly continue to employ a person who is no longer authorized to work. Employers should first establish whether work authorization has actually expired because automatic extensions and other immigration rules can extend employment authorization beyond the date printed on a document.

Are employers responsible for verifying independent contractors’ work authorization?

Form I-9 generally applies to employees rather than bona fide independent contractors. Federal law nevertheless prohibits a person or entity from using a contract, subcontract or exchange to obtain the labor of an unauthorized worker while knowing that the worker is unauthorized. Worker classification should also reflect the actual relationship rather than being used to avoid Form I-9 obligations.

Do remote employees need to complete Form I-9?

Yes. Remote employees hired for employment in the United States are still subject to Form I-9 requirements. Employers can use an authorized representative to carry out document examination. Qualifying employers enrolled and in good standing in E-Verify may also use the DHS alternative procedure for remote document examination where all requirements are satisfied.

Does an expired green card mean an employee must be reverified?

No. Lawful permanent residents have ongoing employment authorization and an employer should not reverify employment authorization simply because a Permanent Resident Card expires.

Does an expired US visa mean an employee can no longer work?

Not necessarily. A visa stamp is primarily used to seek admission to the United States. An employee’s ability to remain and work after admission will depend on their immigration status, I-94 record, approved petition or other employment authorization rather than simply the expiration date printed on the visa.

Can employees work in the United States using ESTA?

ESTA does not provide employment authorization. Eligible travelers may use the Visa Waiver Program for permitted temporary business activities for up to 90 days, but ordinary productive employment in the United States is not permitted.

How can employers improve immigration compliance?

Employers should conduct periodic Form I-9 audits, train HR and mobility staff, maintain reliable immigration records and review material employment changes before they take effect. Businesses should separately monitor Form I-9 reverification, I-94 validity, petition validity and employment authorization rather than treating every immigration deadline as a visa expiration date.

Glossary