The Basics
- Following a massive workforce expansion in late 2025, ICE has pivoted to a “zero-tolerance” policy where clerical I-9 errors — once considered minor technicalities — now trigger immediate, substantive fines ranging from $288 to $2,861 per form.
- Manufacturers in automotive, aerospace, and plastics industries are primary targets due to high-volume hiring demands and automation gaps that often lead to catastrophic cumulative penalties and joint-employer liability.
- To safeguard against disruptive unannounced inspections and catastrophic liabilities, today’s manufacturers should prioritize conducting internal audits, establishing clear ownership of the I-9 process, and training staff to properly respond to a Notice of Inspection or warrant.
ICE Audits and I-9 Enforcement: What Manufacturers Need to Know
Verifying employment eligibility has been a mandatory practice for all U.S. employers since the Immigration Reform and Control Act of 1986 (IRCA).
But in the last year, some longstanding standards and processes related to Form I-9 compliance and enforcement have tightened significantly, presenting increased challenges and risks for manufacturers.
Take, for example, a recent case involving a Michigan-based manufacturer with a workforce of just 50 employees. An unanticipated visit from Immigration and Customs Enforcement revealed several inaccuracies and missing information on I-9 forms.
Though it was clear there was no malice or malintent involved — the company simply lacked the proper processes and did not fully understand the new, stricter requirements of I-9 compliance — the visit resulted in fines totaling over $45,000.
If your manufacturing business faced an unannounced visit from Immigration and Customs Enforcement (ICE) tomorrow, would you pass the audit, or would you face a similar fate?
Here’s what you need to know about recent changes in ICE enforcement and I-9 compliance and, more importantly, how to protect your manufacturing business from running afoul.
From Technicality to Liability: The Cost of Non-compliance
Since the passing of the One Big Beautiful Bill, ICE has massively increased its efforts to ensure compliance with immigration and employment regulations. In late 2025, it expanded its workforce by over 120% in less than four months, swiftly ramping up worksite inspection and enforcement efforts across the nation.
Industries such as plastics, automotive, and aerospace manufacturing, where large-scale workforces are present, are prime targets for the agency’s intensified efforts.
In tandem with its escalated manpower, the agency has also changed its approach to many I-9 errors. Rather than offering grace periods or warnings for correcting I-9 errors historically deemed “technical,” nearly a dozen are now considered substantive violations and can result in immediate financial penalties.
Fines for these violations aren’t minimal, either. They currently range from $288 to $2,861 per form — not per organization. And if ICE determines that an employer knowingly hired unauthorized workers, repeat violations can escalate penalties to over $28,000 per employee. For manufacturers onboarding large numbers of floor workers, these fines can quickly become catastrophic.
I-9 Essentials: Where Manufacturers Often Make Mistakes
All employers must pay particular attention to recent changes in compliance standards. ICE is scrutinizing the exact timing of form completion and the physical verification of identity documents.
Manufacturers should pay particular attention to these critical areas on the Form I-9:
- Section 1 Timing: Employees must complete Section 1 on or before their first day of employment. Late completions are an immediate red flag.
- Section 2 Verification: Employers must physically examine the employee’s documents and complete Section 2 within three business days of the employee’s start date.
- Missing Signatures and Dates: Omitted signatures or incorrect dating formats on either section are classified as substantive errors and carry heavy fines.
- Reverification (Section 3): Failing to track and update expiring work authorization documents is a common and costly oversight.
Understand Your Risks
Manufacturing environments face distinct challenges that make I-9 compliance particularly complex. Three areas manufacturers should pay special attention to are:
- High-Volume Hiring: If your plant onboards large numbers of employees quickly to meet production demands, the probability of human error in documentation is greatly increased.
- Automation and Compliance Gaps: While you may use software to optimize your supply chain or ERP systems, automated HR systems that are not explicitly designed for ICE compliance may overlook critical verification steps, leading to unintentional violations.
- Supply Chain Vulnerabilities: Non-compliance among vendors, staffing agencies, or contractors operating within your facilities can expose your business to joint-employer liability and additional risks.
What to Do When ICE Shows Up
Preparation matters most because the absolute worst time to figure out your compliance strategy is when ICE is knocking on your door. Most ICE enforcement actually starts with paperwork, not a physical raid. Employers are required to produce I-9 documentation within three business days of receiving a Notice of Inspection.
If agents arrive at your facility, your response must be calm and structured. Remember that most workplaces are private property, and ICE cannot enter non-public areas or access records without a valid judicial warrant. An administrative warrant is not sufficient.
If ICE arrives, follow these critical steps:
- Greet them professionally.
- Ask for identification and document exactly whom you are speaking with.
- Request to see the warrant. Verify that it is a judicial warrant.
- Escalate immediately to HR leadership and your legal counsel.
Just as importantly, know what not to do:
- Do not volunteer information.
- Do not answer questions about specific employees.
- Do not grant access without proper authorization.
This is not about being uncooperative. It is about following the law while protecting your organization, securing your operations, and defending your employees. With over 4,300 ICE-related arrests in Michigan between early 2025 and 2026, this enforcement activity is far from hypothetical.
How to Build a Safer, More Streamlined I-9 Compliance Process
A relatively small investment of time today can prevent a devastating financial impact tomorrow. To streamline your compliance and protect operational efficiency, start by conducting a comprehensive I-9 audit — either internally or through a third party to ensure corrections are legally sound. This process requires designating clear ownership within your organization; compliance is too high a risk to leave in a “gray area,” so one person must be held accountable for the integrity of your records.
Simultaneously, evaluate your current workflows to ensure you are using the most current Form I-9 and instructions. It is critical to verify that your electronic systems meet ICE standards and that any remote verification practices are consistently documented to reduce the potential for human error.
Beyond the paperwork, institutional readiness depends on the people managing your daily operations. You must train your entire team — from HR personnel and shift managers to front-desk staff — to ensure they can complete forms accurately and interact professionally with agents. This training should culminate in a documented ICE response protocol.
By establishing a clear plan that details exactly who to contact and how to handle an unannounced visit, you move your organization from a reactive, vulnerable state to a proactive and secure one.
Do not wait for a Notice of Inspection to find out if your records are compliant. Move from reactive to proactive. Schedule a compliance review from Rehmann HR Solutions.
Frequently Asked Questions
Q. We use a staffing agency for our production line. Are we responsible if their workers have I-9 violations?
A: Potentially. While the staffing agency is the “employer of record,” you can be held liable under the legal theory of joint employment if you exercise significant control over those workers (e.g., setting their specific shifts, providing direct supervision, or handling disciplinary actions). If ICE finds that you had “constructive knowledge” — meaning you should have known the agency wasn’t compliant because of suspiciously low rates or lack of paperwork — you could face “knowing hire” penalties of up to $28,000 per worker.
Q. How should we handle reverification for floor workers with expiring work permits?
A: Employers must complete Supplement B (formerly Section 3) on or before the date the employee’s current authorization expires. A common mistake in high-volume plants is failing to track these dates. If a worker’s permit expires on a Tuesday and you don’t reverify them until Friday, that three-day gap is a “continuing to employ” violation, which carries much higher fines than simple paperwork errors.
Q. What is a “Day One Compliance” rule, and why should manufacturers implement one?
A: The Day One Compliance rule sets a standard that no employee is allowed on the production floor until Section 1 is signed and Section 2 is scheduled. Implementing and abiding by this rule is a great way to prevent the paperwork lag that often leads to insurmountable fines during surprise inspections.