“We’ve had three or four dozen I-9 audits in the last few weeks alone,” Cotney shared. “This isn’t isolated. We’re seeing contractors coast-to-coast getting notices of inspection.”

These “notices of inspection,” or NOIs, are formal demands from the Department of Homeland Security (DHS) or ICE requiring companies to produce all of their I-9 forms within three business days. Once submitted, auditors review the documents for accuracy, completeness, and compliance — and even minor mistakes can lead to costly fines.

Receiving a NOI can be intimidating, but Cotney stresses that the initial response is critical.

Stay calm and respectful.

“It sounds obvious, but we’ve seen confrontational scenarios,” he said. “Always designate one point of contact to interact with DHS or ICE.”

Contractors are not required to answer questions from DHS or ICE without an attorney present. Cotney recommends a simple script.

“You can always say, ‘We’re happy to cooperate, but our attorney advised us not to discuss anything until they’re present.’ It keeps you protected.”

• Use the three-day window wisely.
• Once the NOI is issued, you may still identify problems and make corrections. However, anything updated after the notice can be used as evidence in potential penalties.
• Never falsify documents, backdate entries, or use correction fluid. Instead, strike through errors, initial them, and attach a memo explaining the correction.
• Contractors shouldn’t wait for a NOI to get their house in order.

Cotney recommends:

• Conducting internal I-9 audits at least annually
• Training HR staff and supervisors on how to respond to an ICE visit
• Reviewing common errors, such as missing I-9s, incomplete fields, or incorrect verification documents

An unexpected audit following an ICE raid on a jobsite is not uncommon. “A raid often signals that there may be deeper issues,” Cotney explained. “Then DHS conducts a full audit and sometimes even looks into your subcontractors.”

I-9 violations can be extremely expensive. Civil penalties for errors can exceed $700 per violation, and repeat offenses or knowingly hiring unauthorized workers may lead to criminal liability.

“This isn’t something contractors can take lightly,” Cotney emphasized. “Work with counsel to mitigate your risk.”

With the holidays approaching, Cotney also shared some timely business advice.

One of the most overlooked relationships in construction is the one with a supplier’s credit manager.

“Contractors typically know their salesperson, but it’s the credit manager who controls the purse strings,” Cotney said. “In tough times, that relationship becomes invaluable for negotiating payment plans or credit terms.”