Under federal law (8 CFR 274a.2), employers must retain each employee's completed Form I-9 for the entire duration of their employment. Once an employee separates from the company, the employer must keep the I-9 on file for the later of three years after the date of hire or one year after employment ends. This is known as the "retention rule" and applies to all employers regardless of size or industry.
The calculation compares two dates: (1) Three years after the employee's first day of work, and (2) One year after the employee's last day of employment. Whichever date comes later is the earliest date you can safely destroy the Form I-9. For employees who worked less than two years, the 3-year rule will always apply. For employees who worked more than two years, the 1-year-after-termination rule typically results in the later date.
Destroying a Form I-9 before the retention period expires is a violation of federal law. During an I-9 audit or ICE inspection, employers must produce all Forms I-9 within three business days. Missing forms — whether lost, destroyed, or never completed — are treated as substantive violations. Penalties for I-9 paperwork violations range from $288 to $2,861 per form for first-time offenders, with repeat violations reaching up to $28,619 per form.
You must keep a current employee's Form I-9 on file for the entire duration of their employment. You may never destroy the I-9 of an active employee, regardless of how long ago they were hired.
Yes. USCIS allows employers to store Forms I-9 on paper, microfilm, microfiche, or electronically. Electronic storage systems must include controls for integrity, accuracy, and reliability, plus a complete audit trail of any changes. Regardless of format, you must be able to present forms within three business days of an inspection request.
The federal retention rule (3 years after hire or 1 year after termination, whichever is later) applies nationwide. Some states may have additional recordkeeping requirements for employment documents generally, but the I-9 retention period is set by federal regulation. Consult your compliance team if you operate in states with stricter document retention laws.