For nonprofit organizations, mission comes first. But even the most purpose-driven workplaces aren’t exempt from federal employment laws. One area that often flies under the radar—until it’s too late—is Form I-9 compliance.
Regardless of your size—whether you’re a well-established nonprofit or a small, grassroots team—every U.S. employer is legally required to complete and retain Form I-9, Employment Eligibility Verification, for each employee. In today’s environment of regulatory uncertainty and increased enforcement, keeping your Form I-9 records accurate, complete, and readily accessible isn’t just good practice—it’s critical.
With the rise in worksite audits and enforcement actions by agencies like ICE, nonprofits must take a proactive approach to ensure their Form I-9 files are fully compliant and audit-ready.
What is Form I-9?
Form I-9 is used to verify the identity and employment authorization of individuals hired for work in the U.S. Employers must ensure this form is completed correctly and on time:
- Section 1 must be filled out by the employee no later than their first day of work.
- Section 2 must be completed by the employer within three business days of the hire date, using acceptable documents as outlined by the U.S. Citizenship and Immigration Services (USCIS).
Common Pitfall: Where and How You Store Form I-9s
One of the most common mistakes nonprofits make? Storing Form I-9s in individual personnel files.
To stay compliant, Form I-9s should be stored separately—either in a dedicated physical folder or in a secure electronic system. This makes it easy to produce all forms quickly in the event of an audit by the U.S. Immigration and Customs Enforcement, Department of Homeland Security, the Department of Labor, or the Department of Justice. Having to dig through multiple employee files under pressure can lead to missing forms, errors, and unnecessary stress. Failure to comply with Form I-9 requirements can result in civil fines or criminal penalties. There are three categories that can trigger a Form I-9 audit: complaints from individuals, data analysis, and government resources.
What About Long-Standing Employees?
Newer nonprofits may already have onboarding systems in place, but if your organization has been around for a while, now is the time to make sure every employee on payroll has a properly completed Form I-9 on file. Do you have the most up-to-date version of the form? Documentation may be needed to account for using an outdated Form I-9.
There’s no substitute for doing a thorough internal review. Are all forms present and properly filled out? Are you retaining them for the right amount of time—three years after hire or one year after the end of employment, whichever is later? Are corrections, if any, made properly with initials and dates?
Avoiding Compliance Risks
The Immigration Reform and Control Act of 1986 made employment eligibility verification a legal requirement for all employers. Penalties for noncompliance can be steep—even for nonprofits. Fines can result from missing forms, late completion, using the wrong version of the form, or discriminatory practices during the verification process.
Also keep in mind:
- You may use E-Verify, an optional federal system that cross-checks information with government databases.
- You may assign an authorized representative to complete Section 2—but you, as the employer, are still legally responsible.
Final Thoughts
Compliance is critical. Form I-9 should be a routine part of every onboarding process, and every organization should have a plan to regularly review and update its records. Being prepared now can save your organization time, stress, and potential penalties down the road.
If you’re unsure about your nonprofit’s Form I-9 compliance status, reach out to us at Han Group. We are here to help.
