Immigration Compliance Checklist for Tech Companies

Immigration compliance for tech companies has become one of the highest-stakes operational priorities in 2026. Federal agencies including ICE, USCIS, DOL, and the DOJ are coordinating enforcement at unprecedented levels, with worksite audits surging tenfold, new H-1B fees exceeding $100,000 per petition in some cases, and I-9 penalties reaching up to $28,619 per knowing-hire violation. Whether a company sponsors H-1B, L-1, O-1, TN, or EB-2/EB-3 workers, this guide covers the compliance areas relevant to tech employers in 2026.

I-9 Compliance: The Foundation Every Tech Company Must Get Right

Form I-9 verification is required for every employee hired in the United States, regardless of citizenship status. In 2026, this area carries the highest volume of enforcement actions and some of the largest fines.

Current Form I-9 Requirements

The latest Form I-9 (edition date January 20, 2025) includes minor terminology updates. Employers using the August 1, 2023 edition may continue using it until its printed expiration date (either 07/31/2026 or 05/31/2027, depending on the version). Section 1 must be completed on or before the employee's first day of work. Section 2 must be completed within three business days of the start date. Employers cannot specify which documents an employee presents; the employee chooses from the list of acceptable documents.

Remote I-9 verification became a permanent option through the DHS final rule published July 25, 2023, but it is only available to employers enrolled in E-Verify in good standing. The process requires examining document copies via a live video interaction, checking the "Alternative Procedure" box on the form, and retaining clear copies of all documents. Employers not enrolled in E-Verify who conduct remote verification are in direct violation.

E-Verify and State Requirements

E-Verify is mandatory for all federal contractors with FAR E-Verify clauses. It is also required by a growing number of states, including Alabama, Arizona, Florida (25+ employees), Georgia (11+ employees), Mississippi, South Carolina, and Tennessee (35+ employees), among others. At least 13 states advanced new E-Verify legislation in 2025. The E-Verify Status Change Report feature, launched on June 20, 2025, flags employees whose Employment Authorization Documents have been revoked after initial verification, turning I-9 compliance into an ongoing obligation.

Penalty Exposure and Enforcement Trends

As of the most recent DHS inflation adjustment (January 2, 2025), I-9 paperwork violations carry fines of $288 to $2,861 per form. Knowingly hiring unauthorized workers triggers fines of $716 to $28,619 per worker depending on offense history. ICE uses a five-factor test (business size, good faith, seriousness, unauthorized workers involved, and prior violations) to set fines within those ranges.

On March 16, 2026, ICE updated its Form I-9 Inspection guidance to reclassify several previously "technical" errors, including missing dates of birth and use of the Spanish I-9 outside Puerto Rico, as substantive violations with no correction window. What was previously a warning is now an immediate fine.

ICE issued roughly 230 Notices of Inspection across all of 2024. The 2025 pace ran at least ten times higher. During Trump's first term, ICE issued over 5,200 NOIs in a single fiscal year (FY2018), and current enforcement is tracking to match or exceed that level. In April 2025, ICE assessed a $6.2 million I-9 fine against CCS Denver, Inc., a Colorado janitorial company, for a 100% substantive violation rate and at least 87 unauthorized workers.

Document retention follows the "later of" rule: retain each I-9 for the later of three years after hire or one year after termination. I-9 forms are typically stored separately from personnel files. Electronic storage is permitted but requires a complete audit trail. Forms must be producible within three business days of an inspection request.

H-1B Compliance: Wages, Worksites, and Public Access Files

For tech companies sponsoring H-1B workers, compliance extends well beyond petition filing. The Labor Condition Application, wage obligations, and public file requirements create ongoing duties for the entire duration of each H-1B worker's employment.

LCA Posting and Public Access File Obligations

Every H-1B petition requires a certified LCA filed with the DOL. Under 20 CFR § 655.734, employers post notice of the LCA at two conspicuous locations at each worksite for 10 days, starting on or within 30 days before filing with DOL. Electronic posting on an intranet satisfies this requirement.

The Public Access File (PAF) must be created on the same day the LCA is filed and must contain the certified LCA, documentation of the worker's wage rate, the actual wage system explanation, the prevailing wage source, evidence of employee notification, and a benefits summary. Any member of the public can request access to the PAF. Under 20 CFR § 655.810, civil monetary penalties for H-1B violations range from $2,364 per violation (Tier 1) up to $67,367 per violation (Tier 3, covering willful displacement of U.S. workers), as adjusted for inflation. The PAF must be retained for one year beyond the last date any H-1B worker is employed under that LCA.

Prevailing Wage Compliance

Prevailing wages are set at four OES-based levels: Level I at approximately the 17th percentile, Level II at the 34th, Level III at the 50th, and Level IV at the 67th. Employers pay the higher of the prevailing wage or the actual wage paid to similarly situated workers. A proposed DOL rule published March 27, 2026 (FR Doc. 2026-06017) would anchor Level I at the 34th percentile and Level IV at the 88th percentile, representing an estimated $14,000 average annual increase per certified wage. The 60-day comment period closes May 26, 2026, and this proposal is not yet finalized.

Back-pay liability accrues for every day a wage gap persists, even if the underpayment was unintentional. Employers typically audit H-1B workers' wages against the applicable prevailing wage for their MSA and occupation code at least annually.

Worksite Changes and Amendments

Under the Matter of Simeio Solutions decision and USCIS guidance, an amended H-1B petition is filed whenever an employee moves to a worksite outside the MSA covered by the existing petition. The short-term placement exception under 20 CFR § 655.735 allows up to 30 workdays without a new LCA. The regulation extends this to 60 workdays only when all three conditions are met simultaneously: (1) the worker maintains an office or workstation at the permanent worksite, (2) the worker spends a substantial amount of time at the permanent worksite in a one-year period, and (3) the worker's U.S. residence is located near the permanent worksite.

The H-1B Modernization Rule (effective January 17, 2025) eliminated the itinerary requirement for third-party placements but confirmed that worksite changes requiring a new LCA still constitute material changes requiring amended petitions.

Three Major H-1B Reforms That Affect Employers in 2026

The H-1B Modernization Rule (effective January 17, 2025) revised the specialty occupation definition, codified deference for prior approvals, extended cap-gap protections for F-1 students through April 1, allowed entrepreneurs with a controlling interest to self-petition, and made cooperation with USCIS site visits mandatory.

The $100,000 Presidential Proclamation fee (effective September 21, 2025) applies to new H-1B petitions for beneficiaries outside the U.S. who do not hold a valid H-1B visa. It generally does not apply to extensions, amendments, or transfers for individuals already in valid H-1B status within the United States, though exceptions exist if USCIS determines the beneficiary is ineligible for in-country adjudication or if the petition requests consular notification. The fee expires September 21, 2026 unless extended and faces ongoing legal challenges.

The wage-weighted H-1B lottery (effective February 27, 2026) replaces random selection. Level I positions receive one lottery entry, Level II two, Level III three, and Level IV four. DHS projects a 48% reduction in Level I selections and a 107% increase in Level IV selections. This was applied for the first time during the FY2027 registration in March 2026.

USCIS Site Visits: What Employers and Employees Can Expect

USCIS's Fraud Detection and National Security Directorate (FDNS) conducts site visits under two programs: the random-selection ASVVP (since 2009) and the data-driven TSVVP (since 2017). The H-1B Modernization Rule makes cooperation with these visits mandatory. Refusal can result in denial or revocation of any H-1B petition tied to the worksite.

Visits are typically unannounced and last 30 to 90 minutes. Officers verify the business exists, confirm the H-1B employee is physically at the worksite performing the duties described in the petition, review wage records and LCA compliance, and interview the H-1B worker, their supervisor, and HR contacts. FDNS can visit employer offices, third-party client sites, and remote workers' home offices.

What triggers a visit: Random selection, frequent location changes without amended petitions, petition discrepancies, anonymous tips, pending petitions, and high-volume filing patterns all increase the likelihood of a site visit.

Common preparation steps:

• Front desk and security staff are typically trained to identify FDNS officers and immediately contact HR and immigration counsel
• Petition files are kept organized and accessible at each worksite, with copies of the I-797 approval notice, LCA, and job description
• Each H-1B employee's actual duties match the petition description; if responsibilities have evolved, an amended petition may be needed
• All H-1B worker locations are tracked in real time, especially for remote and hybrid arrangements

See Alma's H-1B visa guide for a complete overview of employer and employee obligations throughout the H-1B lifecycle.

Remote Work Compliance for Sponsored Employees

Remote and hybrid work arrangements create specific immigration compliance risks that many tech companies underestimate. The H-1B Modernization Rule formally recognizes telework within the U.S. but does not exempt location changes from LCA requirements.

Same MSA moves: When an H-1B worker relocates their home office within the same MSA, no new LCA or amended petition is needed. However, the existing LCA must still be posted at the new home office for 10 days per 20 CFR § 655.734, and the PAF is updated accordingly.

Cross-MSA moves: When the move crosses MSA boundaries, a new LCA and amended H-1B petition are required before the employee begins working at the new location. Prevailing wage differences between geographies can be substantial. For example, a Level 4 Software Engineer moving from Dallas to San Francisco could face a wage gap exceeding $50,000 per year, creating immediate back-pay exposure.

International remote work: H-1B status requires physical presence and work in the U.S. at locations listed on the LCA. There is no provision for amending an H-1B to authorize work from a foreign country. Extended overseas remote work risks visa cancellation and inadmissibility findings upon re-entry.

Employee responsibilities: Employees on sponsored visas are generally expected to notify their employer and immigration counsel before changing their work location, even for temporary arrangements. Failing to do so can jeopardize both the employee's immigration status and the employer's compliance record.

Export Controls and Hiring Foreign Nationals

Tech companies working with controlled technology face a parallel compliance obligation under U.S. export control regulations. A "deemed export" under 15 CFR § 734.13 occurs when controlled technology or source code is released to a foreign person within the United States. Under the EAR, the release is treated as an export to the person's most recent country of citizenship or permanent residency.

Export controls do not prohibit hiring foreign nationals. They regulate technology access, not employment. When an H-1B, L-1, or O-1 worker needs access to controlled technology, the employer classifies the technology, identifies the employee's country of citizenship or permanent residency, and determines whether a deemed export license is required before granting access.

On Form I-129, employers complete an export control attestation certifying either that no license is required or that one will be obtained. Companies handling controlled technology typically implement a Technology Control Plan covering physical security, information security, personnel screening, and training.

Restricting job postings to "U.S. citizens only" based on export control concerns, absent a specific statutory exception, has resulted in DOJ penalties against employers for conflating export compliance with hiring restrictions in violation of anti-discrimination law.

Mergers, Acquisitions, and Corporate Changes

Tech companies frequently undergo corporate transactions that directly affect sponsored employees' immigration status. Under INA § 214(c)(10), an amended H-1B petition is not required when a new entity succeeds to the interests and obligations of the original petitioner and the terms of employment remain the same.

To qualify as a successor-in-interest, the acquiring company expressly assumes all LCA liabilities, places a notarized assumption memorandum in each affected H-1B worker's PAF before the closing date, and ensures no material change to job duties, wages, or location. If these conditions cannot be met, new change-of-employer petitions are required.

For I-9 compliance, employers choosing to adopt a predecessor's existing I-9 forms also inherit liability for any errors in those forms. Pre-close I-9 audits are standard practice given that a significant share of paper I-9 forms contain at least one error.

For employees with approved I-140s and pending I-485 applications for 180+ days, AC21 portability provides flexibility to transfer to the successor employer in the same or similar occupational classification.

Anti-Discrimination Compliance

The DOJ's Immigrant and Employee Rights Section (IER) enforces INA § 274B, which prohibits citizenship status discrimination, national origin discrimination, unfair documentary practices (document abuse), and retaliation. This area has seen aggressive enforcement against tech companies.

Key prohibitions under INA § 274B:

• Specifying which I-9 documents an employee must present is prohibited. The employee chooses from the list of acceptable documents.
• Requesting more documents than required, or rejecting valid documents, based on an employee's citizenship or national origin is prohibited.
• Photocopying practices for I-9 documents, if used, must be applied uniformly to all employees regardless of citizenship or national origin.
• Preferring visa holders over U.S. workers in hiring, or structuring job postings to exclude U.S. workers, is prohibited.

Recent enforcement includes a February 2026 DOJ settlement involving Elegant Enterprise-Wide Solutions Inc. over AI-generated job advertisements that restricted positions to visa holders, a $200,000 penalty against TekisHub Consulting Services for discrimination against U.S. workers (December 2025), a $47,000 civil penalty and $18,000 in back pay against Tekshapers Inc. for citizenship status discrimination in recruitment (December 2025), and a jury verdict against Cognizant Technology Solutions in Franchitti v. Cognizant (March 2026) awarding $8.4 million for retaliation against an employee who raised concerns about discriminatory hiring practices. A separate pattern-or-practice discrimination class action, Palmer v. Cognizant (October 2024), remains pending on damages.

Penalties for anti-discrimination violations under INA § 274B are subject to annual inflation adjustments under the Federal Civil Penalties Inflation Adjustment Act. As of the most recent adjustment, first-offense penalties start at several hundred dollars per individual and escalate to over $16,000 per individual for entities with two or more prior final orders, plus potential back pay, reinstatement, and monitoring requirements.

Termination and Layoff Obligations for Sponsored Workers

When terminating an H-1B employee, three steps are generally required to end wage obligations:

• Notify the employee in writing of the termination
• Notify USCIS by sending a letter to the approving service center referencing the I-797 receipt number
• Offer reasonable return transportation to the employee's last country of foreign residence

Failure to complete all three steps means the employer remains liable for the full LCA wage through the remaining H-1B validity period. DOL administrative case law has held employers liable for months of back wages where termination notification to USCIS was delayed, consistent with the principle established in Amtel Group of Fla., Inc. v. Yongmahapakorn (DOL ARB No. 04-087, 2006).

The 60-day grace period under 8 C.F.R. § 214.1(l)(2) allows terminated H-1B workers to remain in valid status (up to 60 consecutive days or until the end of the authorized validity period, whichever is shorter) to transfer to a new employer, change status, or prepare departure. This grace period is discretionary and available only once per authorized validity period.

Benching, or failing to pay H-1B workers during nonproductive periods at the employer's direction, is strictly prohibited. Employers pay the required wage for all nonproductive time caused by company decisions, including gaps between client projects. Under 20 CFR § 655.810, willful wage violations carry penalties up to $9,624 per violation (Tier 2, as adjusted for inflation), plus back wages and potential debarment from the H-1B program for one to five years.

Why Choose Alma for Corporate Immigration Compliance?

See how tech companies manage immigration with Alma's business immigration platform, including case studies from startups and growth-stage companies.

Managing immigration compliance across I-9, H-1B, LCA, export controls, and anti-discrimination obligations requires constant attention and coordination. Alma's tech-enabled immigration platform helps employers stay ahead of these requirements.

Compliance tracking built into the platform: Alma provides automated alerts for visa expirations and filing deadlines, LCA management tools, and audit-ready exportable compliance logs. The platform integrates with 60+ HRIS and ATS systems including Workday, BambooHR, ADP, Greenhouse, and Lever, keeping immigration data synchronized with broader HR operations.

Flat-rate, transparent pricing: Alma charges per-visa flat fees (H-1B cap: $3,500; H-1B extension: $3,000; O-1 new: $8,000; PERM: $8,000) with RFE responses included at no additional cost. USCIS filing fees and third-party costs such as education evaluations or translation services are billed separately.

Dedicated attorneys: Every case is handled by a dedicated attorney with direct communication and 24/7 portal visibility into case progress. Alma maintains an industry-high approval rate across visa categories.

Scalable for growth: Alma serves companies from startup (0 to 25 foreign nationals) to enterprise (250+) with role-based access controls, real-time analytics dashboards, and spend forecasting.

Get started with Alma to discuss immigration compliance needs with an experienced attorney.