As of August 11, 2026, the Department of Homeland Security (DHS) has expanded the E-Verify Status Change Report to include additional categories of Employment Authorization Documents (EADs) that DHS later invalidates. The expansion affects EADs issued to asylum applicants, adjustment-of-status applicants, and Temporary Protected Status (TPS) beneficiaries and applicants.
At the same time, U.S. Immigration and Customs Enforcement (ICE) has expanded the list of Form I-9 deficiencies classified as substantive violations. These violations may result in civil penalties without the standard opportunity to correct the forms after an inspection begins.
Employers should review their E-Verify procedures, Form I-9 processes, electronic systems, and internal audit protocols immediately.
Important: This article provides general information as of September 22, 2026. It does not constitute legal advice for a specific employer, employee, Form I-9, or E-Verify case.
DHS Expanded the E-Verify Status Change Report
The DHS and E-Verify bulletin issued August 11, 2026 states that the Status Change Report now includes invalidated Form I-766 EADs in the following categories:
- C08: Asylum applicant with a pending Form I-589.
- C09: Adjustment-of-status applicant with a pending Form I-485.
- A12: Individual granted TPS.
- C19: TPS applicant.
- C11: Parolee EADs, which were already included before the expansion.
DHS may invalidate C08 and C09 EADs after the underlying Form I-589 or Form I-485 is withdrawn, approved, or denied. DHS may invalidate A12 and C19 EADs after the applicable TPS designation is terminated under the required procedures.
An employee may still possess a physical EAD that appears unexpired. DHS does not necessarily retrieve or collect the previously issued card after invalidation. The Status Change Report therefore provides information that may not be apparent from the document’s face.
DHS updates the report approximately every two weeks as new information becomes available.
What E-Verify Employers Must Do
E-Verify employers must review each Status Change Report as part of their established compliance process. When a current employee appears on the report, the employer must:
- Meet with the employee regarding the reported status change.
- Reverify the employee’s Form I-9 using Supplement B.
- Allow the employee to choose which acceptable documentation to present.
- Accept an unexpired List A or List C document establishing current employment authorization.
- Avoid reverifying identity documents, including List B documents.
- Avoid creating a new E-Verify case for the same employment relationship.
The employer may not require the employee to present the same document used previously. The employer also may not demand a specific document, request additional documentation, or reject documentation that reasonably appears genuine and relates to the employee.
The E-Verify guidance on revoked or invalidated EADs should be reviewed before HR staff begin responding to a report.
A Status Change Report does not authorize automatic termination. Employers must follow the Form I-9 reverification process and apply it consistently. Selective action based on national origin, citizenship, immigration status, or perceived ethnicity may violate the anti-discrimination provisions of the Immigration and Nationality Act.
Non-E-Verify Employers Do Not Receive These Reports
Employers that do not participate in E-Verify do not receive Status Change Reports. This distinction is important for employers operating in states or industries where E-Verify participation is not generally mandatory.
However, non-E-Verify employers remain responsible for completing, correcting, retaining, and producing Forms I-9. They must also reverify employment authorization when required by the Form I-9 rules. The absence of a Status Change Report does not eliminate the employer’s underlying compliance obligations.
Employers should not enroll in E-Verify solely to obtain Status Change Reports without first evaluating the program’s requirements, operational effects, and legal obligations.
ICE Expanded the List of Substantive Form I-9 Violations
ICE’s Form I-9 Inspection Fact Sheet, updated August 31, 2026, identifies a broader range of substantive violations. A substantive violation may support a fine without the 10-business-day correction period available for certain technical or procedural failures.
Newly identified or specifically emphasized substantive violations include:
Section 1 Violations
- Completing and retaining the Spanish-language Form I-9 outside Puerto Rico. The Spanish-language version may be officially completed and retained only in Puerto Rico.
- Missing the employee’s date of birth.
- Missing the Alien Registration Number or USCIS Number when the employee checks the lawful permanent resident box.
- Missing the Alien Registration Number, USCIS Number, Form I-94 Admission Number, or applicable foreign passport information when the employee checks the employment-authorized status box.
- Missing the employee’s signature or signature date.
- Failing to enter the expiration date of temporary employment authorization in Section 1 when required.
A new hire with asylum or refugee status may enter “N/A” in the applicable employment authorization expiration field when permitted by the Form I-9 instructions.
Section 2 Violations
- Missing the document title.
- Missing the issuing authority.
- Missing the document number.
- Missing the document expiration date, when applicable.
- Missing the employer representative’s job title.
- Missing the employee’s first day of employment or date of hire.
- Missing the employer representative’s signature or signature date.
- Failing to verify a replacement document within 90 days after the employee presents a valid receipt for a lost, stolen, or damaged document.
- Failing to record required replacement document information.
Retaining a copy of the employee’s documents does not replace the obligation to complete the required Form I-9 fields.
Supplement A and Supplement B Violations
ICE also identifies the following deficiencies as substantive:
- Incomplete preparer or translator information in Supplement A, including the complete name, address, signature, or date.
- Missing the date of rehire in Supplement B.
- Missing required List A or List C document information in Supplement B.
- Failing to complete required reverification entries by the applicable deadline.
- Failing to record required document information for a replacement document in Supplement B.
- Failing to print, sign, or date the employer’s certification in the reverification or rehire section.
Remote Verification and Electronic I-9 Violations
Employers using the DHS-authorized alternative procedure for remote document examination must satisfy all applicable requirements. Substantive violations include:
- Failing to check the alternative procedure box in Section 2 when remote verification is used.
- Failing to check the alternative procedure box in Supplement B when remote verification is used for reverification or rehire.
- Claiming to use the alternative procedure without being an active E-Verify employer or otherwise properly registered in an authorized DHS program.
- Failing to comply with electronic Form I-9 standards involving audit trails, electronic signatures, retention, security, document integrity, accessibility, or reproduction.
Remote onboarding software, video calls, and document-upload tools do not independently authorize remote Form I-9 verification. Employers must confirm that their process satisfies current DHS requirements.
2026 Form I-9 Fine Exposure
For 2026, the applicable civil penalty range for substantive Form I-9 paperwork violations is approximately $288 to $2,861 per Form I-9. The range applies separately to each affected form and may create substantial exposure when the same process error affects a large workforce.
Penalties for knowingly hiring or continuing to employ an unauthorized worker are approximately $716 to $5,724 per individual for a first offense. Higher ranges apply to second and subsequent offenses.
ICE considers statutory factors when determining the final amount, including:
- Employer size.
- Good-faith compliance efforts.
- Seriousness of the violation.
- Whether unauthorized workers are involved.
- The employer’s prior violation history.
Fine levels are expected to rise in 2027 because the applicable civil penalties are subject to inflation adjustments. Employers should not assume that current minimum amounts will remain unchanged.
Industries With Elevated Operational Risk
The changes are particularly significant for industries with large, mobile, seasonal, or decentralized workforces, including:
- Hospitality: Hotels, restaurants, resorts, and food-service employers may onboard large numbers of workers through multiple locations.
- Construction: Contractors and subcontractors may use remote onboarding, authorized representatives, and project-based workforces.
- Agriculture: Seasonal hiring and agricultural recruiters require consistent Form I-9 procedures across changing worksites.
- Home health care: Employers often manage dispersed employees and use electronic onboarding systems.
- Nursing homes and long-term care: Staffing shortages and frequent hiring increase the risk of incomplete forms, late reverification, and inconsistent procedures.
Employers in these industries should verify that corporate HR policies are implemented consistently at each location and by each authorized representative.
Which Employers Must Act and By When?
All employers covered by Form I-9 requirements should act now. The timing differs according to the employer’s E-Verify participation and the type of compliance issue involved.
Immediately
Every employer should review Form I-9 procedures, train staff, and evaluate its electronic system. Employers should confirm that they use the current Form I-9 and the English-language version outside Puerto Rico.
Approximately Every Two Weeks
E-Verify employers should review each newly issued Status Change Report on a fixed internal schedule. The employer should document:
- The date the report was reviewed.
- The employees identified.
- The date of employee meetings.
- The documents presented for reverification.
- The completion of Supplement B.
- Any legal or HR escalation.
Within the Form I-9 Deadlines
Employers must complete Section 2 within three business days of the employee’s first day of employment. Employers must complete required reverification no later than the date temporary employment authorization expires. Replacement documents must be verified within 90 days when the employee presents a qualifying receipt.
Before an ICE Inspection
Employers should conduct periodic internal audits before receiving a Notice of Inspection. After ICE serves a Notice of Inspection, the employer generally receives at least three business days to produce the requested Forms I-9. Technical or procedural errors may receive at least 10 business days for correction, but substantive violations do not receive the same correction opportunity.
Recommended Compliance Measures
Employers should take the following steps:
- Conduct a documented internal Form I-9 audit.
- Review Status Change Reports on a fixed schedule.
- Train HR personnel, managers, authorized representatives, and preparers.
- Confirm E-Verify enrollment remains active before using the alternative procedure.
- Verify that the alternative procedure box is checked when applicable.
- Review electronic I-9 audit trails, signature controls, retention, security, and document reproduction.
- Establish a consistent process for responding to invalidated EADs.
- Preserve records showing how errors were identified and corrected.
- Avoid backdating, erasing, using correction fluid, or improperly rewriting Forms I-9.
- Prepare an organized response plan for a potential Notice of Inspection.
Blasingame Law LLC assists employers and HR teams with business immigration and workforce compliance solutions, Form I-9 internal audits, E-Verify compliance, remote verification procedures, electronic I-9 system reviews, and ICE inspection preparation.
Contact Blasingame Law LLC or schedule a consultation to obtain legal guidance before a compliance error becomes a penalty.
