A practical update for Texas employers on recent changes to worksite enforcement.
If your business employs workers in Texas, especially in construction, hospitality, food processing, agriculture, warehousing, or other labor-intensive industries, the risks tied to Form I-9 compliance have increased substantially. ICE recently changed how it handles I-9 audits, and the financial consequences for employers are now much steeper.
Here’s what changed and what employers should be doing now.
The Main Change
On March 16, 2026, ICE updated its Form I-9 inspection guidance. The biggest shift is that several paperwork mistakes previously treated as “technical” violations, errors employers could correct during an audit without penalties, are now classified as substantive violations.
That change carries two immediate consequences:
- Penalties can apply right away.
Substantive violations may trigger penalties ranging from roughly $288 to $2,861 per form. If an audit uncovers issues across dozens of I-9s, the numbers escalate quickly. - The cure period no longer applies to those errors.
In the past, ICE often issued a Notice of Technical or Procedural Failures and gave employers about ten business days to correct mistakes. Reclassified substantive violations generally do not receive that opportunity.
At the same time, federal enforcement resources have expanded. ICE staffing has increased, additional funding has been allocated for enforcement activity, and employers across the country are seeing more Notices of Inspection.
Why Texas Employers Should Pay Attention
Many of the industries receiving heightened scrutiny are central to the Texas economy. At the same time, a large number of businesses still rely on outdated I-9 practices: paper files stored inconsistently, weak reverification tracking, decentralized onboarding procedures, or supervisors completing Section 2 without training.
Under the updated framework, those routine administrative issues can create substantive violations.
Five Steps Employers Should Take This Quarter
1. Conduct a self-audit through counsel.
An attorney-directed I-9 audit helps identify correctable problems before an inspection occurs. It also documents a good-faith compliance effort, which may help reduce penalties if violations are later found.
2. Centralize the I-9 process.
Different practices across managers or locations create inconsistency, and inconsistency creates exposure. Standardizing responsibility and procedures reduces avoidable errors.
3. Improve reverification tracking.
As DHS shortens validity periods for certain work authorization documents, missed reverifications are becoming a larger source of liability. Employers need a reliable tracking system, not just calendar reminders.
4. Create a Notice of Inspection response plan.
Once an NOI arrives, employers generally have three business days to produce records. That is rarely enough time to build a response process from scratch. Decide in advance who handles communications, where records are stored, and when counsel gets involved.
5. Train managers on the basics.
Many I-9 mistakes happen during onboarding by supervisors trying to move quickly. Brief training on document review rules and anti-discrimination requirements can prevent many common violations.
The Bottom Line
I-9 compliance used to receive relatively little attention at many companies. That approach carries far more risk today. Audits are increasing, penalties are higher, and employers have less flexibility to correct mistakes after an inspection begins.
If you’d like a confidential review of your I-9 process before an audit occurs, I’m happy to discuss it.
This post is for general informational purposes only and is not legal advice. Employers should consult counsel about their specific circumstances.
