How to Verify Work Eligibility Without Getting Sued for Discrimination

The paperwork that protects you from one federal agency can expose you to another. Here's how to run the I-9 process clean.

Laws, licensing requirements, and deadlines vary by state and change over time. This article is general information, not legal or professional advice. Consult an immigration attorney before acting.

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Document-abuse fines ran from $230 to $2,304 per violation under the 2024 inflation adjustment, while Form I-9 paperwork violations ran from $281 to $2,789.^[4] DHS increased those penalties again in 2025.^[5] That's the trap most established shops walk into: you tighten up your hiring paperwork to avoid one problem and hand yourself a discrimination charge on the way out. The rules that verify a worker's eligibility and the rules that stop you from discriminating are the same rules. If you're running a profitable crew and hiring steadily, this is a compliance exposure worth closing before it costs you a settlement.

Where the Discrimination Actually Happens

It almost never happens at the moment you think it does. It happens when you ask for a specific document. Employers must allow each person to choose which documents to present from the Lists of Acceptable Documents.^[2] The second you say "I need to see your green card" or ask a non-U.S. citizen specifically for a DHS-issued document, you're violating the document-choice rules, even if the worker is authorized and everything checks out.^[2]

Both U.S. citizens and non-citizens can establish identity and work authorization with a driver's license and an unrestricted Social Security card.^[2] That means you cannot look at a hire's accent, name, or how they filled out Section 1 and decide they need to bring more. Applying different document requirements based on national origin, citizenship, or immigration status can be unlawful discrimination.^[2] The paperwork looks identical either way. What matters is whether you demanded a particular document based on the worker's citizenship, immigration status, or national origin.

The Part Most Owners Miss on the New Form

As of August 2026, the current Form I-9 carries a Jan. 20, 2025 edition date and is valid through May 31, 2027.^[6] The fourth checkbox in Section 1 was renamed to "An alien authorized to work," and E-Verify's citizenship status language was updated to match.^[3]^[6] Older editions dated 08/01/23 stay valid until their printed expiration dates, so you do not need to reissue forms that are already complete and current.^[7]

The deadline that catches busy shops is the electronic one. Employers using electronic systems to complete Form I-9 were required to update those systems to reflect the May 31, 2027 expiration date by July 31, 2026.^[6] If you run your onboarding through software and never confirmed that update landed, that's a paperwork gap sitting in your files right now. I-9 paperwork violations run $281 to $2,789 per violation under the 2024 adjustment.^[4] Multiply that across a crew and a missed system update stops being a clerical footnote.

What to Change

Stop asking for specific documents. Hand every new hire the full Lists of Acceptable Documents and let them pick what they present, the same way for everyone, no exceptions based on how someone looks or sounds.^[2] Train whoever runs your onboarding to say "here are your options" and nothing more.

Confirm the version. Make sure the Form I-9 you're using shows the 01/20/25 edition date, and if you completed forms on older 08/01/23 editions, leave them alone rather than reissuing.^[6]^[7] If your onboarding runs through an electronic system, verify it was updated to the May 31, 2027 expiration by the July 31, 2026 deadline.^[6]

Know your clock. If a worker or applicant believes you discriminated in the process, they generally have 180 days to file a charge with the Immigrant and Employee Rights Section.^[1] That means your documentation of a uniform, consistent process is what protects you, so keep it clean and keep it identical across every hire.

Hang onto the paperwork. Keep each Form I-9 for three years after the employee's date of hire or one year after employment ends, whichever is later.^[8]

Bottom Line

Run the exact same verification process, give every person the same document choices, and let each person choose what to present. That one discipline closes both exposures at once: the paperwork fine and the discrimination charge.

Sources

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Workforce & Immigration Compliance