Tougher penalties for Form I-9 violations are raising the costs of noncompliance for employers at a time most still lack full automation in their verification processes, according to a new report from Symmetry.
The study found, though, that nearly all employers surveyed are open to adopting embedded I-9 automation and explored three different verification strategies to address key challenges.
The I-9 Automation Gap
All U.S. employers must complete Form I-9, Employment Eligibility Verification, to verify the identity and employment authorization of every person they hire.
Yet Symmetry’s survey of 300 HR and compliance professionals found that I-9 processes remain largely “manual, prone to delays and errors, and filled with anxiety about audits,” with 74% of employers lacking full automation.
The company said since most employers are “stuck in the middle”, with systems that are neither entirely manual nor fully automated, they are “spending time and resources maintaining partial systems that can’t deliver speed or accuracy.” The report also revealed that 31% of respondents have experienced an audit or compliance issue.
Steep Penalties
The stakes for errors are high, with the Department of Homeland Security (DHS) having significantly increased penalties for Form I-9 violations, Symmetry said.
Fines range from $288 to $2,861 per form for paperwork violations and $716 to $28,619 for knowingly employing unauthorized workers. E-Verify noncompliance can lead to fines between $973 to $1,942 per employee.
In severe cases, violations can result in criminal charges, loss of government contracts, or even debarment from federal procurement and certain commercial activities.
Key Bottlenecks
The survey identified specific process steps creating the most challenges for employers.
Section 2 in-person reviews emerged as the biggest bottleneck, cited by 46% of respondents, followed by error corrections/resubmissions (41%) and E-Verify submissions (39%).
“With 59% of employers hiring for remote or hybrid roles, Section 2 has become a huge logistical nightmare,” Symmetry CEO Elizabeth Oviedo noted.
The game-changer, she said, was when the DHS introduced an optional alternative in 2023 allowing employers enrolled in E-Verify to conduct I-9 verification through live video interaction instead of in-person document inspection.
“The best technologies we’re seeing are built to directly support this new flexibility,” Oviedo said. “This includes mobile-first geofencing technology for remote or hybrid workers. Geofencing adds that critical audit layer by capturing location metadata, proving the authorized reviewer and the new hire were in the same physical place.”
Strong Demand for Automated Solutions
Symmetry reported that 45% of HR teams still fix I-9 errors at least monthly after onboarding.
These pain points appear to drive strong demand for automation, with 99% of surveyed employers ready to adopt embedded automated tools that deliver fewer errors, faster completion, seamless E-Verify, and mobile-friendly onboarding.
“The market isn’t just ready for this; it’s actively asking for it,” Oviedo said.
Symmetry outlined three ways that HR Tech, payroll, and onboarding platforms can deliver I-9 capabilities: by building an in-house I-9 verification system, buying a ready-made solution, or taking a hybrid approach.
The company explained that building an in-house solution offers maximum control but requires considerable ongoing investment, while buying a proven platform delivers rapid deployment with proven compliance and predictable costs.
A hybrid approach, meanwhile, lowers compliance risk while allowing platforms to maintain unique workflows or branding.
“HR teams know their manual processes are risky, but the biggest barrier has always been the sheer cost and complexity of building a solution in-house,” Oviedo said. “For HR tech platforms, the best way to overcome this is to stop thinking in terms of ‘build vs. buy’ and start thinking in terms of ‘blend.'”
Oviedo also highlighted audit-readiness as a non-negotiable. For her, this means ensuring three capabilities from the outset: a centralized digital storage for every I-9 and supporting document, an immutable audit trail that logs every single action, and an admin dashboard that lets employers instantly pull a clean, complete report for an auditor on demand.
Beyond these, the Symmetry report outlined other essential features employers should consider when evaluating I-9 verification solutions for their platform, including automation, integration, mobile readiness, and enterprise grade compliance.
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