Immigration Compliance Checklist for Series B Companies

For Series B companies scaling from 50 to 200+ employees, immigration compliance is an operational risk that demands the same rigor as SOC 2 or financial reporting. With ICE worksite audit volume surging, the Department of Labor exercising dormant statutory authority through its first proactive H-1B enforcement program, and USCIS FDNS site visits at elevated levels, companies sponsoring H-1B, L-1, TN, and other work visas face a fundamentally different enforcement environment than even two years ago. This guide covers every major compliance area, with specific penalties, deadlines, and 2025/2026 regulatory changes.

I-9 and E-Verify Compliance: The Foundation Every Hire Touches

Every employee hired in the United States must have a completed Form I-9, regardless of citizenship status. The current edition is dated 01/20/25 and expires 05/31/2027. A terminology update took effect on April 3, 2025: the phrase "A noncitizen authorized to work" reverted to "An alien authorized to work" across both the I-9 and E-Verify, reflecting statutory language preferences under the current administration.

Timing Requirements and Common Mistakes

Section 1 must be completed no later than the employee's first day of employment (but may be completed any time after accepting the job offer). Section 2, where the employer examines identity and work authorization documents, must be completed within three business days of the start date. The most common errors that USCIS auditors identify are missing or blank fields, failure to complete Section 2 on time, accepting expired documents, and specifying which documents employees must present. That last error is notable: telling a new hire to "bring your passport" constitutes document discrimination and can trigger DOJ enforcement separately from any I-9 penalty.

Common I-9 compliance gaps at scaling startups:

Timing failures: Rapid onboarding of engineering cohorts where Section 2 is completed a week late rather than within three business days. Remote workers: Failing to use E-Verify's alternative procedure for remote document examination, or not examining documents at all. Reverification errors: Requesting new documents from employees whose work authorization has not expired, or reverifying documents that do not require it (such as U.S. passports). Retention gaps: Disposing of I-9 forms too early or storing them inside personnel files where they cannot be produced quickly during an audit.

Remote I-9 Verification and E-Verify

Remote document examination is now permanently available, but only for employers enrolled in E-Verify in good standing. Qualifying employers examine document copies transmitted electronically, conduct a live video interaction where the employee presents the same documents, and retain clear front-and-back copies. For distributed-first startups hiring across states, E-Verify enrollment may be worth considering even where it remains voluntary.

E-Verify is federally mandatory only for federal contractors, but multiple states require it for private employers of varying sizes, including Alabama, Arizona, Florida (25+ employees), Georgia (11+ employees), Mississippi, North Carolina (25+ employees), South Carolina, Tennessee (35+ employees), and Utah (more than 150 employees). A single employee in a mandatory state triggers compliance obligations for that hiring site.

Retention Rules

Employers must retain each I-9 for three years from the date of hire or one year after termination, whichever is later, per USCIS retention guidance. Storing I-9 forms separately from personnel files enables rapid production during an audit. Electronic storage is permitted but requires integrity controls and audit trails.

2026 Penalty Amounts

All penalty figures below reflect the January 2025 inflation adjustment per DHS civil monetary penalty regulations (8 CFR § 274a.10), which remains current through 2026:

• Paperwork violations (substantive or uncorrected technical errors): $288 to $2,861 per form
• Knowingly hiring unauthorized workers: $716 to $5,724 (first offense), $5,724 to $14,308 (second offense), $8,586 to $28,619 (third and subsequent offenses)
• Document fraud: $590 to $4,730 (first offense), $4,730 to $11,823 (subsequent offenses)

For a 150-person company with even a 10% I-9 error rate, minimum paperwork exposure alone reaches $4,320. If any unauthorized workers are identified, exposure increases by thousands per individual, plus potential criminal penalties for pattern-or-practice violations.

H-1B LCA Obligations and the Public Access File

Every H-1B petition rests on a certified Labor Condition Application filed through DOL's FLAG system. The LCA contains four employer attestations: the worker will be paid the required wage, working conditions will not adversely affect U.S. workers, no strike or lockout exists in the occupation, and proper notice has been provided. The DOL can audit compliance at any time, and the penalties for violations are severe.

Prevailing Wage and H-1B Dependency

Prevailing wages are set at four levels corresponding roughly to the 17th, 34th, 50th, and 67th percentiles of wages for the occupation in the geographic area, determined through DOL's prevailing wage program. (Note: DOL published a Notice of Proposed Rulemaking on March 27, 2026 that would raise these percentiles significantly; the comment period closes May 26, 2026, and the current levels remain in effect until a final rule is published.) Employers must pay whichever is higher: the prevailing wage or the actual wage paid to similarly situated workers. Employers must also continue paying the required wage during employer-caused nonproductive periods. "Benching" an H-1B worker without pay is among the most commonly enforced violations.

H-1B dependency status is especially relevant for Series B companies. A company with 25 or fewer full-time equivalent employees becomes H-1B dependent if it employs at least 8 H-1B workers. At 26 to 50 employees, the threshold is at least 13. At 51 or more, it triggers at 15% of the total workforce. Dependent employers face additional obligations around non-displacement of U.S. workers and good-faith recruitment.

LCA Posting and the Public Access File

The LCA posting requirement mandates notice to U.S. workers at the place of employment for a total of 10 days, starting on or within 30 days before the LCA is filed with DOL. Electronic posting on an intranet accessible to affected workers satisfies this requirement.

The Public Access File (PAF) is where compliance most often breaks down. Per DOL recordkeeping requirements, the PAF must be created and available for public inspection within one working day of filing the LCA. It must contain: the certified LCA, the worker's actual rate of pay, a description of the actual wage system, the prevailing wage rate and its source, evidence that notice was posted, and a summary of benefits offered to U.S. and H-1B workers. Any member of the public can request access, and the employer must allow inspection. PAFs must be retained for one year after the last date any H-1B worker is employed under that LCA; or, if no H-1B workers were employed under the LCA, one year from the date the LCA expired or was withdrawn.

Project Firewall: DOL's Proactive Enforcement Program

The most significant H-1B enforcement development in over a decade launched on September 19, 2025, when DOL announced Project Firewall. For the first time, the Secretary of Labor is exercising dormant statutory authority (granted under the H-1B Visa Reform Act of 2004) to personally initiate investigations based on reasonable cause, moving beyond the historically complaint-driven model. By late 2025, DOL reported 175+ active H-1B investigations under this program.

Project Firewall operates through interagency coordination between DOL, DOJ, EEOC, and USCIS. A single complaint or red flag can trigger a company-wide investigation. LCA violation penalties reach up to $67,367 per violation for willful offenses involving displacement of U.S. workers (with lower caps applying to general willful and non-willful violations). Back wages in enforcement actions frequently reach six or seven figures.

Alma's business immigration platform automates LCA tracking, PAF generation, and compliance monitoring for every H-1B case. Bi-weekly status calls with a lead attorney and built-in deadline alerts help ensure nothing falls through the cracks as teams scale.

Green Card Sponsorship Planning at Scale

The PERM labor certification process, the mandatory first step for most EB-2 and EB-3 employer-sponsored green cards, takes far longer than most founders expect. As of early 2026, DOL's average PERM processing time is approximately 503 calendar days (roughly 16 months). When factoring in three to six months for the prevailing wage determination, two to three months for mandatory recruitment, and five to twenty-two months for the I-140 immigrant petition depending on category (or approximately 15 business days with premium processing for most categories, or 45 business days for EB-1C and EB-2 NIW, at an additional $2,965 fee as of March 1, 2026), the typical timeline from initiation to I-140 approval is roughly 2 to 3 years for straightforward cases, closer to 2 years when premium I-140 processing is used.

When a visa number is immediately available, I-140 and I-485 (adjustment of status) may be filed concurrently, enabling EAD and advance parole benefits along with AC21 job portability.

The PERM Recruitment Process

Recruitment requirements are extensive. All positions require a State Workforce Agency job order (30 days minimum), two Sunday newspaper advertisements, and a notice of filing posted at the worksite for 10 consecutive business days. Professional positions requiring a bachelor's degree or higher need three additional recruitment methods from a prescribed list of ten options, including job fairs, employer websites, professional organizations, and trade publications. Mandatory recruitment steps must occur within 30 to 180 days before filing (though one additional professional recruitment step may fall within 30 days), followed by a mandatory 30-day quiet period. All PERM costs must be borne by the employer.

DOL targets integrity checks on roughly 30% of PERM applications, though actual audit rates vary by fiscal year and filing characteristics. Audits or further review by DOL can add another 6 to 12 months to the timeline. Complete documentation of the entire recruitment process, including evidence that no qualified U.S. workers were available, is important to surviving an audit.

The H-1B Clock Problem

H-1B status is limited to six years. However, two provisions under AC21 enable extensions beyond this cap. Under AC21 § 106(a), one-year H-1B extensions are available when a PERM application or I-140 petition has been pending for 365 or more days without a final decision. Under AC21 § 104(c), three-year extensions are available when an I-140 is approved but no immigrant visa number is available due to per-country backlogs. These provisions create a firm planning horizon: the PERM process generally needs to begin early enough in the H-1B period to ensure that a filing is on record at least 365 days before the six-year limit.

Visa Bulletin Backlogs and Alternative Pathways

The visa bulletin backlog determines when an approved I-140 actually leads to a green card. For India-born employees, who represent a large share of tech workers, EB-2 Final Action priority dates have advanced to approximately mid-2014 as of the April 2026 visa bulletin, representing approximately an 11-to-12-year backlog (subject to retrogression). China-born employees face four-to-five-year waits. Most other countries are fully current as of April 2026, though the State Department has indicated retrogression may occur later in the fiscal year.

For exceptional employees, the EB-2 National Interest Waiver bypasses PERM entirely, removing 15 to 24 months from the process. The EB-1A extraordinary ability category is another pathway for top-tier talent. Screening every foreign national hire for the optimal green card pathway at onboarding can significantly improve retention outcomes.

Budget planning: Alma's PERM flat fee is $8,000, with the I-140 at $4,000 for EB-2 or EB-3. USCIS government filing fees (currently $715 base plus $600 Asylum Program Fee for employers with more than 25 FTE employees, per USCIS Fee Schedule G-1055) and premium processing fees are additional. At scale (20+ filings per year), total green card sponsorship costs can range from $200,000 to $500,000 annually.

2025/2026 Regulatory Changes That Affect Your Compliance Program

H-1B Modernization Rule (Effective January 17, 2025)

The H-1B Modernization Final Rule codified FDNS site visit authority and made cooperation mandatory. It clarified specialty occupation definitions, required direct relationships between degree fields and job duties, and formalized deference to prior petition approvals. A revised Form I-129 is required for all petitions filed on or after this date.

Wage-Weighted H-1B Lottery (FY 2027)

Beginning with the FY 2027 registration period (March 2026), DHS implemented a wage-weighted selection process. Level IV wage positions receive four entries in the lottery, Level III gets three, Level II gets two, and Level I gets one. Since the majority of historical H-1B petitions were filed at Levels I and II, most employers face reduced selection odds.

$100,000 H-1B Proclamation Fee

A $100,000 supplemental fee applies to new H-1B petitions where the beneficiary needs to enter the U.S. It generally does not apply to extensions, amendments, or change-of-status requests for individuals already in the country, provided the beneficiary maintains valid nonimmigrant status throughout adjudication. The proclamation is set to expire September 21, 2026, unless extended. Multiple legal challenges are pending.

Elimination of Automatic EAD Extensions (October 30, 2025)

DHS removed the automatic 540-day EAD extension for multiple categories, including H-4 spouses and adjustment-of-status applicants, among others. (STEM OPT applicants retain a separate 180-day auto-extension under different authority.) Once an EAD expires, the holder must stop working until a new card is issued. Careful tracking of expiration dates and early renewal filing are important to avoiding gaps in work authorization.

FDNS Site Visits: What Happens at Your Office

USCIS Fraud Detection and National Security (FDNS) site visits have increased sharply under the Modernization Rule. Visits are unannounced, typically last 30 to 60 minutes, and can occur at the employer's office, third-party client sites, or remote work locations listed on petitions.

The FDNS officer presents credentials and requests to speak with an employer representative, the H-1B employee's supervisor, and the beneficiary separately. The officer inspects the physical workspace, may photograph the premises, and requests documentation including the PAF, LCA, payroll records, W-2s, and organizational charts. Officers ask the H-1B employee to describe their job duties, salary, supervisor, and current projects, then cross-reference answers against the petition. Discrepancies between what was filed and what the officer observes can trigger further investigation, potential petition revocation, and referral to ICE.

Typical preparation includes: designating a trained point of contact at each office, briefing all H-1B employees on what to expect, training front-desk staff to recognize government visitors, and keeping all documentation centrally organized and accessible on short notice.

Why Choose Alma for Business Immigration Compliance?

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

Traditional law firms often treat compliance as an afterthought, buried in billable-hour email chains and scattered spreadsheets. Alma's modern immigration platform was built for scaling companies that need compliance infrastructure, not just case-by-case legal work.

Platform-level compliance tracking: Alma's system automatically tracks I-9 deadlines, LCA posting periods, PAF creation requirements, EAD expiration dates, and H-1B amendment triggers when employees change work locations or job duties. Real-time dashboards give HR leaders and founders visibility into every open case, upcoming deadline, and compliance risk across their entire foreign national population.

Transparent, flat-fee pricing: H-1B filings start at $3,500 for cap or cap-exempt petitions, with extensions and amendments at $3,000. PERM labor certifications are $8,000. No hourly billing surprises, and RFE responses are included in the base fee.

Dedicated attorney access: Every client receives a dedicated attorney (not rotating associates) with direct communication and response times within 4 to 6 hours on business days. Bi-weekly status calls with a lead attorney and immigration manager are included at no extra cost.

Industry-high approval rate: Alma maintains an industry-high approval rate across all visa categories, backed by rigorous case preparation, attorney-led strategy, and a platform designed to catch issues before filing.

Scalable infrastructure: From startup to growth to enterprise, Alma's platform scales with your team. Volume discounts are available for companies managing larger foreign national populations, and preferred rates apply for portfolio companies of Y Combinator, Techstars, Pear VC, and other partners.

Learn more about Alma and how it supports compliant immigration programs at scale.