Virtually every business in the United States faces requirements for completing and maintaining Form I-9. This form is unique because companies do not file this information with any regulatory body or government agency. Instead, the employer is responsible for maintaining accurate records. You must furnish them upon request by an enforcing agency, which may occur for several reasons.
What are some of the best practices for I-9 retention? One of the most important things is how long you must keep I-9 records on file. Discarding these forms too early could make achieving compliance during a federal audit impossible, leading to fines and other problems. Keeping forms for too long can be a risk to the security of personnel data and an unnecessary recordkeeping burden.
The key facts to understand are the retention rules for active employees and those who no longer work for you. Here’s a quick breakdown of what you need to know based on current guidance from the United States Citizenship and Immigration Services (USCIS) about Form I-9 retention.
The Rules on Retention for Active Employees
The company must have a complete form I-9 for employment eligibility verification for all employees currently working for the business and actively on payroll, with no exceptions. You must keep these documents on hand throughout the individual’s entire employment period. However, once an employee leaves your business, a timer starts on how long you must maintain the records. You must maintain records for ex-employees even if they only worked for you for a limited period.
Understanding Retention After Employee Separation
The USCIS defines two criteria for record retention based on the duration an employee worked for a company, which is essential to understand. According to the government, you must use whichever method would provide the latest possible start date for retention requirements.
The general rule for retention is that you must maintain records for whichever date is later: three years from the start of someone’s employment or one year after their job role ended.
The first category involves employees who worked for your business for two years or less. The USCIS expects you to keep these forms for three years. Use the “First Day of Employment” field to calculate the end date of your retention requirement.
The individuals you employ for two years or more fall into the second category. You should keep their I-9s on file for one year after they leave your employment. Remember that all active employees must have forms on file; you cannot discontinue maintaining them while they remain on your payroll.
What if You Rehire Someone During the Retention Period?
Employees rehired within three years of their original I-9 completion have the option to complete the I-9 Supplement B, Reverification and Rehire. Carefully follow USCIS guidelines for completing the Supplement B block, as you must confirm that the individual is still eligible for employment in the United States.
If you wish, you can complete a new I-9 form. Using Supplement B is not necessarily required for rehires. Completing a new form may be less complicated and provide more peace of mind concerning compliance, especially when the current valid edition of the I-9 changes. Rehiring restarts the clock on retention.
Acceptable Methods of Retention According to USCIS
The USCIS states that several acceptable methods for retaining Form I-9 exist. Select the method that best aligns with your business needs and current capabilities. It is also wise to evaluate storage methods based on reliability and accessibility. Should you ever need to produce documents for a federal audit, your records should be easy to reach. Acceptable options include maintaining paper I-9 files, microfiche/microfilm, and electronic storage using computers.
The Handbook for Employers has additional information on best practices for paper I-9s and extensive guidelines on acceptable microfilm arrangements. When using an electronic system, comprehensive security is paramount to protect sensitive data such as individual Social Security numbers.
Destroying Documents at the End of the Retention Period
When an employee departs the company, HR should consider attaching a note to the individual’s I-9 file with a calculated end date for retention purposes. Periodically purging I-9s beyond their retention period is advisable. Doing so helps reduce administrative burdens, frees up space, and eliminates the risks of a data breach that could access historical data. Along with periodic self-audits to ensure compliance with the rules, an occasional check to see if you can remove any old files is a good practice.
Follow best practices for document destruction when removing I-9 documents from your files. Shredding physical paper documents, for example, is one way to destroy the information securely. When removing I-9s from electronic systems, ensure the data undergoes permanent deletion. Beware of copies that may exist in backups, and take extra care to remove this information entirely.
Validate Your Retention Procedures Today
On the surface, retention requirements for the I-9 form might seem complex. However, by following the simple guidelines published by the USCIS online, you can better understand your obligations. Third-party support can also contribute to simplifying retention requirements through better technology. Automation can support removing records securely when retention requirements expire. Likewise, technology can help make safe retention simpler for long-term employees.
Review your current approach to Form I-9 retention requirements. Confirm that you comply with these guidelines or make changes to ensure you have all the proper paperwork. For more information about I-9 guidelines and mandates, refer to the Handbook for Employers, M-274.
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About Michael Klazema The author
Michael Klazema is the lead author and editor for Dallas-based backgroundchecks.com with a focus on human resource and employment screening developments
