What is the potential consequence of failing to maintain proper documentation for an employee's I-9 form?

Failing to maintain proper documentation for an employee's I-9 form can lead to penalties from enforcing authorities. The I-9 form is essential for verifying the identity and employment eligibility of individuals hired for employment in the United States. If employers do not maintain these forms correctly, or if they are found to have improper documentation, they may face civil penalties, which can include significant fines depending on the nature and frequency of the violations.

In addition to monetary penalties, there could be other ramifications, such as the possibility of increased scrutiny from immigration enforcement agencies during audits. This underscores the importance of complying with documentation requirements to avoid penalties.

While loss of a business license or increased insurance rates could be potential repercussions in a broad sense, they are not direct consequences specifically tied to I-9 documentation. Therefore, the risk of penalties from enforcing authorities stands out as the most relevant and immediate consequence of failing to maintain proper I-9 documentation.