Does your company currently file and store I-9’s electronically or have you thought about it as an option for the future? If so, read on to learn about the new final rule that was published on July 22, 2010. The U.S. Department of Homeland Security (DHS) published a final rule amending an interim final rule on the electronic signature and storage of the Form I-9.

The final rule allows employers to complete, sign, scan and store the Form I-9 electronically as long as certain performance standards in the final rule for the electronic filing system are met.

The final rule makes minor modifications to the interim final rule to clarify that employers:

  1. Must complete a Form I-9 within three business days (not calendar days).
  2. Can use paper, electronic systems or a combination of paper and electronic systems.
  3. Can change electronic storage systems as long as the systems meet the performance requirements of the regulations.
  4. Need not retain audit trails for each time a Form I-9 is viewed electronically. Instead, only when the Form I-9 is created, completed, updated, modified, altered or corrected.
  5. Can provide or transmit a confirmation of a Form I-9 transaction but are not required to do so unless the employee requests a copy.

Employers have also requested guidance on the storage of documents used to verify an employee’s identity and eligibility to work in the United States. DHS clarified that employers may, but are not required to, copy or make an electronic image of a document used to comply. Employers should develop a consistent policy regarding the storage of document copies to avoid discrimination.

Additionally, the form I-9 and verification documentation may be stored in a separate Form I-9 file or as part of an employee’s other employment records. The pages of the Form I-9 containing employer- and employee-entered data need be retained; the other pages do not need to be retained.

The DHS amended the interim final rule to require an employer to provide or transmit a confirmation of the transaction only if an employee requests it. If requested, a receipt when completing an electronic record should be provided within a reasonable period of time, but it need not be provided at the time of the transaction.

Keep in mind that providing the option of electronic preparation and storage does not alter the requirement that the employer physically examine any documentation provided by the employee in the presence of the employee prior to completing the Form I-9. The final rule takes effect August 23, 2010.