I-9 Compliance Under the Microscope: What Recent Fines and Lawsuits Mean for Employers and How to Mitigate Them

I-9 compliance risks are rising fast—from multimillion-dollar ICE fines to costly data breaches. Learn how employers can stay audit-ready and avoid preventable mistakes with Tracker I-9 and expert support from Mitratech.

Eli Schafernak May 19, 2025

Recent headlines have sent a clear message: I-9 compliance risks are no longer a back-office task to revisit “when there’s time.” With multimillion-dollar fines and high-profile lawsuits making waves this spring, employers should consider themselves on notice.

Two stories in particular stand out:

In April 2025, ICE fined three Colorado-based companies a combined $8 million for employing unauthorized workers following an I-9 audit.
Shortly after, a $650,000 class-action settlement was reached over a February 2024 cyberattack involving I-9 data, highlighting the legal and financial risks of failing to secure employee information.

These cases are not isolated. They’re part of a broader pattern: a return to aggressive worksite enforcement and a tightening of data privacy expectations. I-9 audits are among the most accessible and frequently used tools in this regulatory push.

ICE Is Stepping Up: I-9 Compliance Risks in Action

In the Colorado cases, ICE discovered dozens of unauthorized workers employed across cleaning and property management firms. The largest fine—$6.1 million—was levied against CCS Denver Inc. for employing at least 87 unauthorized workers. These weren’t accidental oversights; they were determined through comprehensive audits that reviewed I-9 forms for accuracy and legitimacy.

ICE didn’t mince words in its statement:

“The employment of unauthorized workers undermines the integrity of our immigration system and puts law-abiding employers at a disadvantage.”

This should be a wake-up call for HR teams, legal departments, and business leaders. I-9 audits don’t just impact businesses knowingly skirting the rules. Many companies face fines due to simple, preventable errors—like incomplete forms, outdated processes, or failure to reverify work authorization—making I-9 compliance risks more serious and widespread than ever.

The Other Threat: Data Breaches

Beyond audits, companies also face growing exposure from the data security side of I-9 compliance risks. The February 2024 cyberattack that led to the $650K lawsuit affected thousands of workers and highlighted a vulnerability that many companies overlook: the sensitive personal data collected during onboarding.

I-9s contain names, addresses, Social Security numbers, IDs, and work eligibility documents. If you’re still storing these on spreadsheets, shared drives, or outdated systems, you could be one breach away from a costly legal battle.

How Mitratech Keeps You Out of I-9 compliance risks

With fines and audits ramping up, I-9 compliance isn’t something to push down the to-do list. Tracker I-9 from Mitratech helps you fix what’s broken, stay ahead of the rules, and avoid becoming the next headline. Here’s how:

1. Clean Up Your I-9s

Don’t wait for ICE to spot mistakes. Tracker I-9 automatically checks your forms for errors—like missing signatures or wrong dates—and helps you fix them fast. Cleaning up forms early is one of the easiest ways to reduce I-9 compliance risks before they become legal problems. Need hands-on help? Our I-9 Resolve Pro service brings in real experts to review forms, correct issues, and get you audit-ready.

2. Ditch the Paper

Paper forms are a lawsuit waiting to happen. We make it easy to convert old I-9s into secure digital records—so they’re organized, protected, and easy to find when the audit notice comes.

3. Bring in the Experts

Our team includes top-ranked immigration pros with one stat we’re proud of: 20+ years and zero client fines. They’ve seen it all—including the most common I-9 compliance risks—and are ready to step in if you’re audited or need help handling forms the right way.

4. Be Ready for an Audit—Anytime

ICE gives you just 3 business days to respond to an audit. Tracker I-9 keeps all your records in one place, searchable and shareable in minutes—not days. And for remote hires? We make in-person ID checks simple with a nationwide network of I-9 Centers and mobile officers.

5. Keep Up Without Lifting a Finger

I-9 rules change often—and missing a small update can cost you big. Tracker I-9 keeps everything up to date in the background so your team doesn’t have to chase policy changes or worry about missing something. It’s one of the simplest ways to stay protected from evolving I-9 compliance risks without overloading your HR team.

Eliminate I-9 Compliance Risks Without the Hassle

With enforcement actions rising and I-9 compliance risks broadening, now is the time to revisit your I-9 strategy. Companies that get ahead of the curve will not only avoid fines—they’ll also strengthen trust with their workforce and demonstrate integrity in their hiring practices.

Don’t wait until you’re facing fines or lawsuits.
Talk to us today about how Tracker I-9 and I-9 Resolve Pro can help keep your workforce compliant, your records secure, and your business audit-ready.

Eli Schafernak

As the Jr. Content Marketer for Mitratech, I create and optimize content for HR Compliance (HRC). Whether I’m crafting blogs, writing award submissions, or leveraging SEO to enhance past content performance, I’m your go-to writer.

With a strong background in content marketing, I got my start managing social media campaigns for Run Forever Sports, where I handled everything from writing and photography to athlete partnerships and webpage optimization. Later, during my internship at ProLiant, an HR and payroll company, I wrote two eBooks, optimized landing pages, and crafted press releases.

I hold a Bachelor of Science in Marketing from DePaul University, where I earned Dean’s List recognition. Passionate about content that tells a story and engages, I bring creativity and strategy to every project.

Let’s connect and create impactful HR content together!