Why is it important for employers to retain I-9 forms properly?

Retaining I-9 forms properly is essential for employers primarily to maintain compliance with federal regulations and to avoid penalties from audits. The I-9 form is a crucial document used to verify the identity and employment authorization of individuals hired for employment in the U.S. Employers are required by law to complete and maintain these forms for all employees, as failure to do so can lead to serious consequences, including fines and other penalties from immigration authorities.

Having proper documentation helps employers demonstrate their adherence to the legal requirements under the Immigration Reform and Control Act (IRCA). During audits, if an employer cannot provide the I-9 forms for inspection, it raises red flags and may result in sanctions. Therefore, proper retention not only safeguards the company against potential legal issues but also reinforces their commitment to following employment laws.

The other options, while related to employee rights and workplace integrity, do not directly address the critical compliance aspect of I-9 retention that is so crucial for employers. Maintaining employee productivity records, for example, does not have a bearing on I-9 compliance and does not fulfill the primary purpose of retaining these forms.