I-9 Audits and ICE Worksite Enforcement in Texas: What Employers Must Do in 2026
A single missing signature on a Form I-9 can cost your business thousands of dollars. In 2026, Immigration and Customs Enforcement (ICE) has intensified worksite enforcement across Texas, and the fines for paperwork violations have climbed to levels that can cripple a small or mid-sized company. Whether you run a construction crew in San Antonio, a restaurant in Eagle Pass, or a healthcare practice in San Angelo, understanding your I-9 obligations is no longer optional.
At The Lozano Law Firm, Board-Certified Immigration Attorney Alfredo Lozano helps Texas employers navigate I-9 compliance, prepare for audits, and defend against ICE enforcement actions. With offices in San Antonio, Eagle Pass, and San Angelo, we serve businesses across the state.
What Is the I-9 and Why Does It Matter?
Every employer in the United States must verify the identity and employment eligibility of every person they hire. This verification happens on Form I-9, Employment Eligibility Verification, under INA §274A and 8 CFR §274a.2.
The form has three sections:
- Section 1 must be completed by the employee on or before the first day of work.
- Section 2 must be completed by the employer within three business days of the employee’s start date.
- Section 3 is used for reverification when an employee’s work authorization expires.
Every U.S. employer with at least one employee must comply. There is no small business exemption. This includes sole proprietors, nonprofits, religious organizations, staffing agencies, and household employers.
Texas industries with high rates of foreign-born workers face particular scrutiny. Construction, hospitality, food processing, agriculture, landscaping, and healthcare are among the sectors most frequently targeted for ICE worksite inspections.
What Happens During an ICE I-9 Audit
An ICE audit typically begins with a Notice of Inspection (NOI), a written demand to produce I-9 forms and supporting documentation. Here is the typical sequence:
Step 1: Notice of Inspection. ICE delivers or mails an NOI. You generally have three business days to produce your I-9 forms, though ICE sometimes agrees to a short extension.
Step 2: Document production. You provide all I-9 forms for current employees and retained forms for former employees (three years from the hire date or one year after termination, whichever is later). ICE may also request payroll records, business licenses, and tax documents.
Step 3: Inspection. ICE agents examine every I-9 for technical violations (missing information, late completion, wrong documents) and substantive violations (employing unauthorized workers).
Step 4: Findings. ICE issues one of several outcomes: a compliance letter, a Notice of Technical Failures with a 10-day correction period, a Notice of Suspect Documents, a Notice of Intent to Fine (NIF), or a Warning Notice.
Step 5: Response. If you receive a NIF, you have 30 days to request a hearing before an Administrative Law Judge. This is where legal representation becomes critical.
I-9 Penalties in 2026
Civil penalties have increased substantially. As of 2026:
Paperwork violations: First offense: $281 to $2,789 per I-9. Second offense: $2,789 to $6,972. Third and subsequent: $4,183 to $6,972.
Knowingly hiring unauthorized workers: First offense: $698 to $5,583 per worker. Second offense: $5,583 to $13,956. Third and subsequent: $8,374 to $27,894.
A business with 25 employees and systematic I-9 errors on every form could face first-offense paperwork fines of $7,025 to $69,725. Criminal penalties are also possible in cases of knowing pattern or practice violations.
Common I-9 Mistakes Texas Employers Make
1. Completing Section 2 late. The employer must complete Section 2 within three business days of the employee’s first day of work. Not three days after the employee brings documents. Three days from day one.
2. Asking for specific documents. Employers may not tell an employee which documents to present. The employee chooses from the Lists of Acceptable Documents. Requesting a green card or Social Security card specifically can constitute document abuse.
3. Accepting expired documents for Section 2. With limited exceptions (certain EADs with automatic extensions), employers should not accept expired documents for Section 2.
4. Failing to reverify. When an employee’s work authorization has an expiration date, the employer must reverify by completing Section 3 on or before that date.
5. Not retaining I-9 forms properly. Employers must retain each I-9 for three years from hire or one year after termination, whichever is later.
6. Over-documenting. Requiring more documents than the form calls for can create legal exposure, especially if the practice is applied inconsistently.
E-Verify in Texas
As of 2026, Texas does not require E-Verify for all private employers. It is required for Texas state agencies, state contractors, and federal contractors subject to the FAR E-Verify clause. Many employers use it voluntarily as an additional compliance measure, but E-Verify does not replace the I-9. You must still complete the form regardless of E-Verify participation.
How to Prepare Before an Audit
The best time to fix your I-9 compliance is before ICE contacts you. These steps can dramatically reduce your exposure.
Conduct an internal I-9 audit. Pull every current employee’s I-9 form and review it line by line for completeness and accuracy. Check that Section 2 was completed within the three-day window, that acceptable documents were properly recorded, and that reverification was handled on time for employees with expiring work authorization. Correct technical errors using USCIS guidance: draw a single line through the incorrect information, write the correct information nearby, and initial and date the correction. Do not use white-out or erase anything.
Establish a written I-9 policy. Document your company’s procedures for completing, storing, and reverifying I-9 forms. Identify who is responsible for I-9 completion at each office or job site, and make sure those individuals receive training at least annually. A written policy also demonstrates good faith in the event of an audit, which can reduce fine amounts.
Set up reverification tracking. Calendar every work authorization expiration date for employees with time-limited authorization. Build in a 90-day advance reminder so you have time to complete Section 3 before the expiration date arrives. Missing a reverification deadline is one of the most preventable violations.
Store I-9 forms separately from personnel files. This is recommended but not required. The advantage is practical: if ICE requests your I-9 forms, you can produce them without also handing over confidential employee information that is not subject to inspection.
Consult an immigration attorney. An experienced employer compliance attorney can conduct a privileged internal audit, identify vulnerabilities the business may not recognize on its own, and build a corrective action plan before enforcement arrives. Attorney-client privilege protects the findings of a legal audit in a way that a self-conducted review does not.
Texas-Specific Considerations
Border region employers in Eagle Pass and the Rio Grande Valley face heightened ICE scrutiny due to proximity to the border and cross-border commerce complexities.
Agriculture and ranching across West Texas and the San Angelo region rely on seasonal and foreign-born labor. H-2B seasonal worker compliance and I-9 procedures are especially important for these employers.
Construction and hospitality in San Antonio employ a significant percentage of foreign-born workers and are historically targeted for large-scale worksite operations.
Military contractors near JBSA, Goodfellow AFB, and Laughlin AFB may have federal contract E-Verify requirements beyond standard Texas obligations.
Frequently Asked Questions
How much are I-9 fines for a first offense in 2026?
Paperwork violations range from $281 to $2,789 per form. Knowing-hire violations range from $698 to $5,583 per unauthorized worker. The exact amount depends on the seriousness of the violation, business size, good faith compliance efforts, and violation history.
What triggers an ICE I-9 audit?
Audits can be triggered by anonymous tips, employee complaints, leads from other investigations, industry-targeted enforcement initiatives, or random selection. Texas employers in construction, hospitality, agriculture, and food processing are statistically more likely to be audited.
Can my employees be deported during an I-9 audit?
An I-9 audit is a civil, paper-based review of employer records, not a workplace raid. However, if the audit reveals specific employees without work authorization, those individuals may be referred for immigration enforcement.
Can I correct I-9 errors before an audit?
Yes. USCIS allows corrections using a specific process: draw a single line through incorrect information, enter the correct information, and initial and date the correction. An immigration attorney can guide you through this before errors become violations.
Protect Your Business Today
I-9 compliance is not something you can afford to put off. The penalties are real, enforcement is increasing, and the mistakes that lead to fines are often simple errors a proactive review could have caught.
Board-Certified Immigration Attorney Alfredo Lozano holds Board Certification in Immigration and Nationality Law from the Texas Board of Legal Specialization, a credential held by fewer than 5% of Texas immigration attorneys. From internal audits to ICE inspection defense, The Lozano Law Firm helps Texas employers get their I-9 programs right.
Schedule your I-9 compliance review today. Contact our San Antonio, Eagle Pass, or San Angelo office to get started.
