Pay BillIn Summary:
Construction companies are facing increased scrutiny as ICE intensifies Form I-9 enforcement, with expanded penalties for documentation errors, shorter response times for inspections, and AI-powered compliance reviews. Conducting an internal I-9 audit, updating onboarding procedures, and strengthening compliance processes can help contractors reduce risk, avoid costly fines, and keep projects moving without disruption.
Written by Kate Fluker, CPA, CCIFP®, BMSS Senior Manager
If you run a construction company, your workforce is your business. You depend on crews showing up, projects moving forward, and jobsites staying productive. But right now, a compliance issue that many contractors have quietly ignored for years is becoming impossible to overlook: Form I-9.
Immigration and Customs Enforcement (ICE) has dramatically intensified its workplace enforcement efforts, and construction is one of the industries squarely in its crosshairs. For firms that haven’t taken a hard look at their I-9 documentation, the window to get ahead of this is closing fast.
What’s Changed?
ICE has expanded the list of I-9 errors it classifies as “substantive violations,” meaning mistakes that once triggered a grace period for correction can now result in immediate fines. Missing an employee’s date of birth, failing to date Section 1 or Section 2, omitting the employer representative’s title, or leaving document information incomplete are no longer viewed as minor administrative oversights. Each one is a potential penalty.
Back in 2025, ICE hired 10,000 new agents and shifted from routine audits to unannounced worksite visits. When employers receive a Notice of Inspection, they now have as little as three business days to produce their I-9 documentation. ICE is also deploying AI-powered analytics to detect discrepancies across both paper and electronic I-9 systems, making even small clerical errors harder to hide.
The financial consequences are real. Substantive I-9 violations can range from $288 to $2,861 per form. Knowingly employing an unauthorized worker carries fines from $716 to $28,619 per worker. For a construction firm with 50 employees and widespread documentation errors, potential penalties can reach well into the tens of thousands of dollars overnight.
Why Construction Companies Face Elevated Risk
“Construction is one of the industries that tends to have higher I-9 error rates,” says Kate Fluker, Senior Manager at BMSS Advisors. “High turnover, seasonal hires, subcontractor relationships, and fast-paced onboarding all create situations where I-9 documentation gets overlooked or completed incorrectly. In an environment where ICE is actively looking for violations, that’s a significant liability.”
The nature of construction work compounds the problem. Crews are often onboarded quickly to meet project deadlines, documentation review happens in the field rather than in an HR office, and firms frequently rely on subcontractors whose compliance practices may not meet federal standards. None of that excuses a missing or incorrect I-9, and ICE isn’t making exceptions for the pace of the industry.
In addition, a new version of Form I-9 was released in January 2025. While older versions remain valid through 2026, switching to the updated form now ensures your process reflects current requirements and reduces the risk of using outdated instructions or document descriptions.
What You Should Do Right Now
“The best thing a construction company can do today is conduct an internal I-9 audit before ICE shows up to do it for them,” Fluker says. ” The cost of finding and fixing any issues internally is a fraction of what the fines would be.”
A thorough internal audit should verify that every employee has a properly completed I-9 on file, that all required fields are filled out with original signatures, and that any expired work authorization has been reverified before it lapsed. When an error is found, it should be corrected using proper procedures: draw a line through the incorrect information, enter the correct information, and initial and date the change. White-out is never acceptable and is an immediate red flag during an inspection.
Beyond the audit, construction firms should designate a trained person responsible for I-9 compliance, standardize onboarding procedures so every new hire completes the form correctly and on time, and have a response plan in place in the event of an ICE visit.
Don’t Wait for an Inspection to Find Out Where You Stand
I-9 compliance has always been a legal requirement. What has changed is the likelihood that non-compliance will be discovered and the severity of the consequences when it is. For construction companies operating on tight margins, a five- or six-figure penalty is not an abstract risk. It is a real threat to your bottom line.
BMSS works with construction firms across the Southeast to navigate complex compliance requirements and protect their operations. If you have questions about your I-9 process or want help conducting an internal audit, reach out to our team today. Contact one of our professionals today by calling (833) CPA-BMSS.
