On June 27, 2025, the Department of Homeland Security (DHS) published an interim final rule that compresses the civil penalty timeline under the Immigration and Nationality Act. Although the text focuses on fines against non-citizens, the new procedure may reshape the enforcement framework that U.S. employers encounter whenever Immigration and Customs Enforcement (ICE) reviews Form I-9 records, H-1B program files, or other immigration-related activities. Coupled with the higher penalty amounts that took effect earlier this year, the rule may increase both the speed and the financial consequences of non-compliance. 

Overview of DHS’ June 27 Interim Rule

• The interim final rule is effective immediately; public comments are due by July 28, 2025.
• Appeals of civil fines now go to a DHS supervisory officer, rather than the Department of Justice’s Board of Immigration Appeals, shortening the contest process.
• ICE can transfer unpaid penalties to the Department of the Treasury sooner, accelerating collection.
• The rule applies to fines arising under INA sections 240B(d), 274D, 275(b), and related provisions, but its streamlined procedures suggest a broader enforcement posture that may reach employers through I-9 and worksite audits.

Current Civil Penalty Amounts for Employers

The dollar amounts below were adjusted for inflation on Jan. 2, 2025, and remain in force under the procedures introduced on June 27.

• Knowingly hiring or continuing to employ an unauthorized worker: $716 to $28,619 per individual, depending on prior violations.
• Form I-9 paperwork errors: $288 to $2,861 per form.
• Document fraud violations (first offense): $590 to $4,730; subsequent offenses up to $11,823.
• Prohibited fee-shifting or indemnity bonds: $2,861 per occurrence.

These amounts apply to penalties assessed after Jan. 2, 2025, for conduct that occurred on or after Nov. 2, 2015.

June 27 Rule’s Potential Implications for HR and Compliance Teams

• Faster enforcement: ICE will now issue, serve, and collect fine on an accelerated timetable, reducing the opportunity to negotiate or cure deficiencies before money is due.
• Lower appeal threshold: Internal DHS review replaces the multi-layer process previously available, giving employers fewer procedural safeguards and less time to respond to investigations.
• Heightened deterrence: The combination of larger fines and swifter collection indicates DHS intends civil penalties to play a more prominent role in worksite enforcement.

Considerations for U.S. Employers

There are several proactive measures U.S. employers may consider to prepare themselves in the event of a government audit. These include:

• Run an internal I-9 and E-Verify audit
  • Verify that all active and terminated employee files are complete and accurate.
  • Work with outside counsel to correct deficient forms and put in place an “audit ready” response protocol. 
• Check H-1B and PERM records
  • Confirm public access files, LCAs, and wage data reflect the prevailing-wage schedule that began July 1, 2025.
  • Confirm no immigration costs have been passed to employees in violation of fee-shifting rules.
• Refresh document-fraud training
  • Train recruiters and hiring managers to recognize counterfeit or altered identity documents.
• Update notice-of-fine response protocol
  • Designate a point person in legal or HR to manage ICE correspondence; the shorter contest window may require triage. 
• Revisit vendor and staffing contracts
  • Add clauses requiring third-party contractors to certify adherence to Form I-9 and work-authorization rules and to indemnify the company for violations.

Takeaways

• The June 27, 2025, interim final rule allows ICE to impose and collect civil penalties more quickly than before.
• Maximum fines now reach nearly $29,000 per unauthorized worker and almost $3,000 per deficient I-9 form.
• Employers should shore up compliance programs, audit existing files, and establish rapid-response procedures for potential future enforcement actions.