US immigration compliance law governs how employers hire and manage foreign workers while ensuring that all employees have legal authorization to work. Regulations require businesses to verify employee work eligibility, follow visa sponsorship rules, and maintain accurate records to prevent unauthorized employment.

Employers must comply with the Immigration Reform and Control Act (IRCA), which mandates the completion of Form I-9 for all employees, regardless of citizenship status. The law also regulates visa programs such as H-1B, L-1, and PERM labor certification, requiring businesses to adhere to strict hiring and wage requirements.

Failure to comply with immigration laws can lead to fines, debarment from visa programs, business license revocation, and even criminal charges in severe cases. Immigration authorities conduct worksite audits and unannounced inspections, increasing the risk of enforcement actions against businesses that do not maintain proper documentation.

Employers must ensure that all foreign workers have valid employment authorization, keep records up to date, and respond appropriately to government audits. Conducting internal I-9 audits, training HR teams, and consulting immigration professionals can help businesses avoid violations. Ensuring compliance not only protects a company from legal risks but also strengthens its reputation and workforce stability.

 

Example Scenario

 

Imagine you’re a UK business owner who just won a long-term contract in Los Angeles worth several million dollars, requiring you and your small team of highly skilled employees to move to the US to work closely with the new client.

You register a CA business entity and set up a small serviced office. The client has a strict deadline, so you sent your employees to the US as visitors, without exploring work visa options. You get the employees to the US quickly, making the client happy. The work is going well until one day you receive a knock on the door. It’s a USCIS officer making an unannounced visit, asking you to for copies of work visas and I-9 forms for all employees in the US. You are unable to provide this and are found guilty of fraud and abuse of US immigration law. You have to pay significant fines and send all employees back to the UK immediately. The client does not want to be associated with a company who violates the law, so they end their contract, resulting in the loss of millions of dollars of business for your company.

This unhappy scenario illustrates the result of a failure to follow US immigration law regulations. Companies that employ foreign nationals in the US have always faced potential penalties for non-compliance with US immigration laws, but we are seeing increased worksite enforcement actions, unannounced inspections and substantial fines. Even inadvertent violations can result in costly repercussions.

 

Areas of Common Non-Compliance & Penalties

 

Non-compliance carries significant consequences for the employer and even inadvertent and unintentional violations can result in costly penalties for a business that fails to comply with the detailed requirements.

 

Form I-9: Employment Eligibility Verification

 

Under the Immigration and Nationality Act, Section 274A, employers must have an I-9 Form on file for every employee, whether a US citizen, green card resident or holder of a non-immigrant work permit. Along with the form, there must also be supporting documents to verify the employee’s identity and immigration status.

Examples of non-compliance in US immigration law that carry civil penalties include:

• Knowingly recruiting or hiring an unauthorized alien for employment
• Failing to verify an employee’s identity stated on the 1-9 Form with supporting documents
• Failing to notify the Department of Homeland Security that an employee is ineligible for employment
• Filling out the form incorrectly or omitting information

Effective January 2, 2025, penalties for I-9 violations have increased. Employers can now face fines ranging from $288 to $2,861 per violation. These penalties apply per form, meaning multiple errors can lead to substantial fines.

For knowingly hiring or continuing to employ unauthorized workers, fines range from $590 to $4,722 for a first offense, escalating to $7,082 to $28,309 for third and subsequent offenses. Additionally, employers may face debarment from government contracts and, in cases of a pattern or practice of violations, criminal penalties including imprisonment.

Criminal penalties may also be brought if an employer engages in a practice of recruiting or referring unauthorized aliens for a fee, and in addition to fines this can carry federal prison time. In extreme cases, a company could also lose its business license and permission to operate in the US.

 

Work Visas

 

The H1B visa program has undergone reforms aimed at preventing the displacement of US workers by low-cost foreign labor. Increased site visits target employers with high ratios of H-1B workers, focusing on verifying worksite locations and job duties. Similarly, L-1 visa holders, transferred as executives, managers, or specialists, are subject to scrutiny to prevent misuse.

Violations can include:

• Misrepresenting worksite locations.
• Submitting fraudulent supporting documents.
• Paying wages below the prevailing rate.
• “Benching” workers without pay.
• Employers not actively conducting business in the US (for L-1 visas).

Penalties for such violations can result in fines, debarment from visa programs for up to five years, and, in cases involving fraud, imprisonment. Affected employees may also face visa revocation and deportation.

 

Misuse of Visa Waiver Program for Business or Work

 

The US is strict in preventing misuse of the VWP by employers and workers to circumvent the arduous and expensive work permit process. A citizen of any country that is within the US Visa Waiver program can obtain a three-month business visa which is designed for short term visits rather than actual employment activity in the United States.

This is an attractive and useful option for conferences, meetings, project development, marketing or sales visits to the United States, but some companies have relied on the business visa for “stealth” employee work assignments. This practice may have been successful in the past, but now business visitors will be under greater scrutiny, especially if they have entered the US on multiple business visas in the recent past.

Consistent overuse of business visas could result in employees being barred entry at the border, or even restrictions on business activity for the company.

 

Worksite Visits

 

One very real possibility for any employer with foreign nationals on their payroll is a work site visit or inspection to verify employee documentation and immigration status. In some cases, immigration authorities will give a business three days notice prior to an inspection, but surprise, unannounced worksite visits are being stepped up to verify all employees I-9 information, as well as supporting documents for H1B and L-1work visas.

A worksite visit by ICE is far from a formality, and any business that employs foreign workers should have an audit plan in place to prepare for unexpected visits. Completed and signed I-9 forms should be on file and easily accessible, as well as copies of supporting documents. Conducting a self-audit is also recommended, to identify any problems with an I-9 or employee’s documents prior to an inspection.

If the site visit is unannounced, the business still has three days to supply the forms and documents if needed. Key management and legal staff should be contacted before any forms or documents are given to ICE, and savvy companies will have some protocol in place to handle the site visit. HR and support staff need to be trained to handle a surprise visit from ICE.

 

Need assistance?

 

If your company employs foreign workers in the United States for brief periods of time for long-term transfers it is advised to carefully review your internal process for completing and verifying I-9 Forms and preparing for unexpected site visits. All employment-based visas (H-1B, L-1, E-2, O-1, etc.) should all be applied for and used in strict accordance with US immigration law, to avoid penalties, fines and potential red flags for your business in the United States. To discuss immigration compliance for your organisation, contact our US attorneys.

Immigration compliance FAQs

What is immigration law compliance for employers?

Immigration law compliance ensures that employers only hire individuals who are legally authorized to work. It includes verifying employee work authorization, maintaining required records, and following visa sponsorship rules.

 

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

Form I-9 is used to verify the identity and employment authorization of every new hire. Employers must complete and retain this form for all employees to avoid fines and penalties for hiring unauthorized workers.

 

What are the penalties for I-9 violations?

Fines for I-9 violations range from a few hundred to thousands of dollars per violation. Employers who knowingly hire unauthorized workers may face higher penalties, criminal charges, and debarment from federal contracts.

 

How often do immigration authorities conduct worksite audits?

Immigration and Customs Enforcement (ICE) and other agencies conduct audits and unannounced inspections regularly, especially for companies employing foreign workers under visa programs like H-1B and L-1.

 

What should an employer do if they receive an I-9 audit notice?

Employers should review their I-9 forms, consult legal counsel, and respond promptly. Missing or incorrect forms should be corrected before submitting documents to the authorities.

 

Can an employer fire a worker whose work authorization expires?

Employers cannot continue to employ someone whose work authorization has expired. However, they must follow proper termination procedures to avoid discrimination claims.

 

Are employers responsible for verifying independent contractors’ work authorization?

Form I-9 is only required for employees, not independent contractors. However, knowingly contracting unauthorized workers can still lead to legal penalties.

 

What are the most common compliance mistakes employers make?

Common mistakes include missing or incomplete I-9 forms, failing to update expiring work authorizations, not maintaining copies of required documents, and failing to conduct regular internal audits.

 

Do remote employees need to complete Form I-9?

Remote employees must still complete Form I-9. Employers can designate an authorized representative to verify identity and work authorization in person.

 

How can employers ensure compliance with immigration laws?

Employers should conduct regular internal audits, train HR staff on I-9 procedures, track visa expirations, and stay updated on changes to immigration laws to avoid legal issues.

 

Glossary

 

 

Term	Definition
Form I-9	A document required for all employees to verify identity and work authorization in the United States.
E-Verify	An online system that allows employers to confirm employee work authorization by checking government databases.
ICE Audit	A review conducted by Immigration and Customs Enforcement to ensure employers comply with work authorization laws.
H-1B Visa	A temporary work visa for skilled foreign professionals in specialty occupations.
L-1 Visa	A visa for intra-company transfers, allowing multinational companies to send employees to US offices.
Worksite Compliance	The requirement for employers to maintain proper documentation and adhere to immigration laws for all employees.
Unauthorized Employment	Hiring or continuing to employ an individual who does not have valid work authorization.
Debarment	A penalty that prevents an employer from participating in visa programs or receiving government contracts due to violations.
Visa Sponsorship	The process in which an employer files an immigration petition to hire a foreign worker on a visa.
Penalties for Non-Compliance	Fines, criminal charges, or other legal actions against employers who violate immigration laws.