Immigration Compliance Checklist for Companies with 25+ Foreign Nationals

Immigration compliance for employers sponsoring 25 or more foreign nationals has become a high-stakes operational priority. ICE I-9 audit volume in the first half of 2025 ran at roughly ten times the 2024 pace, employer cooperation with USCIS site visits is now mandatory under the H-1B Modernization Rule, and the Department of Labor's Project Firewall initiative has put LCA wage compliance under direct federal investigation. This checklist covers I-9 management, Public Access File requirements, visa status tracking, and audit preparation as they apply to employer compliance in 2026.

I-9 Compliance and E-Verify: The Foundation of Employer Obligations

Every individual hired for employment in the United States requires a completed Form I-9, regardless of citizenship status or company size. For companies managing 25 or more sponsored foreign nationals, I-9 compliance demands structured systems, not ad hoc processes.

Current Form Version and Key Changes

USCIS released a revised Form I-9 with an edition date of 01/20/2025, valid through 05/31/2027. The prior 08/01/2023 editions also remain acceptable through their respective printed expiration dates (07/31/2026 or 05/31/2027, depending on the version). Employers using electronic I-9 systems must update to the 05/31/2027 expiration date by July 31, 2026. The January 2025 revision changed the Section 1 attestation from "a noncitizen authorized to work" back to "an alien authorized to work" and replaced "gender" with "sex" in List B document descriptions. The structural format remains unchanged from the 2023 overhaul: Sections 1 and 2 on a single page, Supplement A for preparers/translators, and Supplement B for reverification and rehires.

Remote Document Examination

The currently authorized alternative document examination procedure (Optional Alternative 1, implemented under 8 CFR 274a.2) is available only to employers enrolled in E-Verify in good standing. Under this procedure, employers may examine I-9 documents by first receiving front-and-back copies from the employee, then conducting a live video interaction in which the employee presents the same documents for verification. The employer must check the "alternative procedure" box on the form, create an E-Verify case, and retain clear copies of all documents. This procedure must be offered consistently to all employees at each site where it is used. Non-E-Verify employers have no remote option and must conduct physical, in-person document examination.

E-Verify Mandates Are Expanding

Nine states now require E-Verify for most or all private employers: Alabama, Arizona, Florida (25+ employees), Georgia (11+), Mississippi, North Carolina (25+), South Carolina, Tennessee (35+), and Utah (150+). At least 13 additional states mandate it for public employers or government contractors, with Ohio's new law bringing the count to 14. Ohio's Workforce Integrity Act took effect March 19, 2026, requiring all nonresidential construction contractors to use E-Verify. Federal contractors with the FAR E-Verify clause must verify employees assigned to covered contracts plus all new hires.

USCIS is also gradually deploying E-Verify+, which combines the I-9 and E-Verify into a single digital workflow where employees complete their Form I-9 on any device and E-Verify case creation happens automatically.

Reverification Requirements

Employers must reverify before an employee's work authorization expires, using Supplement B. Only List A or List C documents may be presented for reverification. U.S. citizens, noncitizen nationals, and lawful permanent residents who presented a Green Card are never reverified. Employees choose which acceptable document to present; specifying or requesting particular documents constitutes a document-abuse violation enforced by DOJ's Immigrant and Employee Rights Section.

Critical 2026 change: A DHS interim final rule published October 30, 2025 (announced October 29) ended automatic EAD extensions for renewal applications filed on or after October 30, 2025. Previously, timely filed renewals received up to 540 days of automatic extension. This change directly affects when reverification is triggered for EAD holders and requires closer monitoring of EAD renewal adjudication timelines.

Retention Rules

Each I-9 must be retained for three years after the hire date or one year after employment ends, whichever is later. Electronic storage systems must include audit trails, integrity controls, indexing, and the ability to reproduce legible paper copies. All I-9s, whether paper or electronic, must be presented within three business days of an inspection request. Storing I-9 forms separately from general personnel files allows for rapid production during audits.

Alma's platform includes built-in compliance tracking for all sponsored employees, including automated deadline alerts and document storage. Learn more about Alma for businesses.

Public Access File and LCA Compliance

Every H-1B, H-1B1, and E-3 petition requires a certified Labor Condition Application filed through the DOL's FLAG system. The employer makes four core attestations under 20 CFR §655.731: it will pay the higher of the actual wage or prevailing wage, employment will not adversely affect U.S. worker conditions, no strike or lockout exists at the worksite, and proper notice has been given.

What Must Be in the Public Access File

Under 20 CFR §655.760, the PAF must be created within one working day of LCA filing, not certification and not petition approval. The PAF must contain the certified LCA, the wage rate to be paid, a full explanation of the actual wage system, prevailing wage documentation, copies of notice provided to workers or their union, and a benefits summary. H-1B-dependent employers must also include lists of entities in the single-employer group, exempt H-1B workers, and recruitment summaries. The PAF must be maintained at the principal U.S. place of business or the worksite, and any member of the public may request access. Retention period: one year beyond the last date any worker is employed under the LCA, or one year from the LCA's withdrawal or expiration if no worker was employed. Payroll records carry a separate three-year retention requirement.

LCA Posting Requirements

Notice must be provided on or within 30 days before the LCA filing date. If no union exists, the employer posts in at least two conspicuous locations at the worksite for a total of 10 days, or posts electronically via intranet, email to each affected employee, or electronic bulletin board for a total of 10 days. The notice must include the number of H-1B workers sought, occupational classification, wages, employment period, worksite locations, and a statement directing complaints to the Wage and Hour Division.

Worksite Changes and Remote Work

A move outside the Metropolitan Statistical Area requires a new LCA and an amended H-1B petition filed before the worker begins at the new location. Moves within the same MSA require only notice posting at the new site. The short-term placement exception (20 CFR §655.735) allows placement outside the LCA area for up to 30 workdays in a 12-month period, extendable to 60 workdays if the worker maintains an office at the original worksite, spends substantial time there, and maintains a U.S. residence in that area. The employer must pay the required wage and cover all lodging, travel, meal, and incidental costs.

Remote work adds complexity: if an H-1B worker regularly works from home in a different MSA, the home constitutes a worksite requiring its own LCA with the local prevailing wage.

Prevailing Wage and the Wage-Weighted Lottery

Prevailing wage levels use DOL's Occupational Employment and Wage Statistics data across four tiers: Level 1 (entry, approximately 17th percentile), Level 2 (qualified, approximately 34th), Level 3 (experienced, approximately 50th), and Level 4 (fully competent, approximately 67th). Updated OES data for the July 2025 to June 2026 wage year was published on July 1, 2025. Effective February 27, 2026 for FY 2027 registrations, DHS replaced the random H-1B cap lottery with a wage-level-weighted selection system: Level 4 positions receive 4 entries in the selection pool, Level 3 gets 3, Level 2 gets 2, and Level 1 gets 1, with selection occurring randomly from the weighted pool. USCIS will compare registration information against LCA and petition data, and discrepancies may trigger RFEs, denials, or revocations.

Alma offers transparent per-visa pricing for all H-1B filings, including cap registrations ($500), new cap/cap-exempt petitions ($3,500), extensions ($3,000), and amendments ($3,000). RFE responses are included in the base fee.

Visa Status Tracking and Expiration Management

For companies sponsoring 25 or more foreign nationals, manual spreadsheet tracking is no longer sufficient. The number of critical dates per employee, combined with recent regulatory changes to grace periods and EAD extensions, demands automated systems integrated with HRIS platforms.

Critical Dates to Track Per Employee

For each sponsored worker, the following dates are important to monitor: I-94 expiration dates (the single most important date, as it controls authorized stay regardless of visa stamp validity), I-797 petition validity periods, EAD expirations, LCA validity periods, PERM filing dates (for AC21 extensions beyond the H-1B six-year limit), I-140 filing and approval dates, and I-9 reverification deadlines. Many employers file extension petitions at least six months before expiration as a common risk-mitigation practice.

H-1B Six-Year Limit, Extensions, and Recapture

H-1B status is capped at six years of authorized admission under INA §214(g)(4), though time spent physically outside the U.S. during an approved petition can be "recaptured" under 8 CFR §214.2(h)(13)(iii)(C). Time in L-1 status counts against this limit. Two pathways extend H-1B status beyond six years under the American Competitiveness in the Twenty-First Century Act: AC21 §106(a) grants one-year extensions when 365 days have passed since PERM or I-140 filing, and AC21 §104(c), as implemented by 8 CFR §214.2(h)(13)(iii)(E), grants extensions in up to three-year increments when an approved I-140 exists but an immigrant visa is unavailable due to per-country backlogs.

The 60-Day Grace Period and 240-Day Extension Rule

Under 8 CFR §214.1(l)(2), workers in E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1, and TN status receive up to 60 days (or the remainder of their I-94, whichever is shorter) after employment ends to change status, find a new sponsor, or depart. However, starting in mid-2025, reports confirmed that USCIS has begun issuing Notices to Appear to H-1B holders during the grace period, particularly after employer petition withdrawals. Some employers have responded by timing H-1B withdrawal notifications to allow departing workers to file transfer petitions or change-of-status applications promptly after separation.

The 240-day extension rule (8 CFR §274a.12(b)(20)) permits continued employment with the same employer for up to 240 days beyond the I-94 expiration when the employer timely files an I-129 extension petition before the I-94 expires. If USCIS denies the extension, work authorization terminates immediately.

Consequences of Status Lapses

Unlawful presence begins the day after an I-94 expires without a timely filed extension. Accumulating more than 180 days but less than one year of unlawful presence, then voluntarily departing before removal proceedings begin, triggers a three-year inadmissibility bar upon seeking readmission; one year or more of unlawful presence triggers a ten-year bar upon departure or removal. Employer liability attaches under INA §274A for knowingly employing unauthorized workers, and "knowing" includes constructive knowledge, meaning facts the employer reasonably could have known, such as an expired EAD tracked in its own systems.

ICE Audits and FDNS Site Visits: Preparation Checklist

The enforcement environment in 2025 and 2026 represents one of the most aggressive periods for workplace immigration compliance in recent U.S. history. Companies with 25+ foreign nationals may benefit from treating audit readiness as a standing operational requirement.

ICE I-9 Audit Preparation

When ICE serves a Notice of Inspection, employers typically receive three business days to produce all I-9 forms for current employees and recently terminated workers still within the retention period. ICE may also request payroll records, tax records, employee lists, and business licenses. The April 2025 ICE-IRS memorandum of understanding authorizes ICE to request taxpayer address information for persons subject to final removal orders or federal criminal investigation, though the agreement's scope and legality remain under active federal litigation across multiple federal courts.

Employer checklist for ICE audit readiness:

• Comprehensive internal I-9 audits are generally conducted at least annually, correcting errors in good faith without backdating or altering original entries
• I-9 files are typically maintained separately from personnel files in a centralized, indexed system accessible within three business days
• A designated compliance officer with a written inspection-response protocol identifying legal counsel contacts and chain-of-communication procedures
• HR staff trained on completing I-9 forms correctly and avoiding common errors: missing signatures, incorrect dates, wrong document combinations, and failure to reverify on time
• All I-9 forms using the current edition, with electronic systems meeting DHS retention and security requirements

FDNS Site Visit Preparation

The H-1B Modernization Rule codified FDNS authority to conduct visits at any location where an H-1B employee works, has worked, or will work, including third-party client sites and, under the rule's broad scope, home offices for remote workers. Employer cooperation is mandatory, and refusal can directly result in petition denial or revocation. Visits are mostly unannounced, last 30 to 120 minutes, and involve verification that the employer exists, the employee is working at the stated location performing described duties at the stated salary, and work conditions match the LCA.

Employer checklist for FDNS site visits:

• A trained primary contact, ideally an HR manager, designated to handle unannounced visits
• Every H-1B employee briefed so they can accurately describe their job title, daily duties, salary, work location, and supervisor
• Readily accessible Public Access Files at the worksite or principal place of business
• A secure file per H-1B worker with the approved I-129 petition, certified LCA, posting proof, 12 to 24 months of payroll records, job description matching the petition, and employee credentials
• Third-party clients notified that FDNS may visit their premises
• Documentation of every question asked and answer given during the visit, with immigration counsel contacted immediately

Alma provides dedicated immigration support for growth-stage and enterprise companies, including compliance tracking, bi-weekly status calls with lead attorneys, and white-glove migration from existing vendors. Explore business solutions.

Penalties: What Noncompliance Costs

I-9 civil penalties (effective January 2, 2025 per Federal Register 2024-31204) range from $288 to $2,861 per form for paperwork violations. Knowingly hiring or continuing to employ unauthorized workers carries fines of $716 to $5,724 per worker for a first offense, $5,724 to $14,308 for a second offense, and $8,586 to $28,619 for third and subsequent offenses. Criminal penalties for pattern-or-practice violations include fines up to $3,000 per worker and up to six months' imprisonment.

LCA violation penalties (effective January 15, 2025 per Federal Register 2024-31602) reach up to $2,364 per violation under 20 CFR §655.810(b)(1), $9,624 per violation for willful failures or misrepresentation under §655.810(b)(2), and $67,367 per violation for willful violations involving displacement under §655.810(b)(3). DOL can additionally order full back-pay and debarment from the H-1B program for at least one year (non-willful violations), at least two years (willful violations), or at least three years (willful violations involving displacement).

For a company with 50 improperly completed I-9 forms, paperwork fines alone could total $14,400 to $143,050 before any knowing-hire penalties apply.

Why Choose Alma for Immigration Compliance

See how companies manage immigration at scale with Alma's case studies.

Traditional law firms charge hourly rates that make compliance unpredictable, and many lack the technology to provide real-time case visibility across a portfolio of 25 or more sponsored workers. Alma's immigration platform combines experienced attorneys with purpose-built software to give HR teams and company leadership the control they need.

Industry-high approval rate: Alma maintains an industry-high approval rate across all visa categories, reflecting the rigor of its attorney-led preparation process and built-in compliance workflows.

Platform-level visibility: Alma's platform provides cost projections and real-time dashboards factoring in legal fees, USCIS fees, and premium processing. Compliance tracking, deadline alerts, and document storage are built into every case.

Transparent pricing: Alma offers flat per-visa fees across all major visa categories, from H-1B ($3,500 cap/cap-exempt) and O-1 ($8,000 new) to L-1 ($6,000 initial/new office) and employment-based green cards ($10,000 for EB-1A, EB-1B, EB-1C, EB-2 NIW). RFE responses, administrative charges, and software access are included in the case fee.

Dedicated attorney access: Every case is assigned to a dedicated attorney, not rotating associates. Alma attorneys respond within 4 to 6 hours on business days, and Growth and Enterprise clients receive bi-weekly status calls with a lead attorney and immigration manager.

Volume support: Companies managing larger foreign national populations receive volume discounts, and Alma offers 50/50 payment plans for businesses that prefer flexibility.

Get started with Alma to discuss your company's immigration compliance needs.