For construction companies, managing employment authorization compliance isn't just another paperwork task – it's a critical business function that can impact your ability to operate and grow. With 7 million workers in the construction industry – roughly 5% of America's total workforce – contractors face unique challenges when documenting employment eligibility.  

The stakes are high: as of January 2025, penalties for Form I-9 violations now range from $281 to $2,789 per form. Employers knowingly hiring unauthorized workers face even steeper consequences, with fines reaching $27,894 per violation for repeat offenders.
With increased enforcement, these fines can quickly escalate to hundreds of thousands of dollars, not to mention the costs of potential project delays from workforce disruptions.

This guide breaks down exactly what construction companies need to know about managing work authorization in 2025, with specific strategies designed for managing compliance across multiple job sites, handling seasonal workforce fluctuations, and integrating verification processes with your existing back-office systems.

Form I-9 Basics for Construction Companies

What Is Form I-9?

Form I-9, Employment Eligibility Verification, is a federally-mandated document required for every employee hired in the United States. The form verifies both identity and employment authorization.

For construction companies, what makes I-9 compliance particularly challenging is the combination of:

• Distributed workforces across multiple job sites
• Seasonal hiring patterns
• High turnover rates
• Complex subcontractor relationships
• Varied state and municipal requirements for public works projects

Key Deadlines

Companies must adhere to strict timelines:

• Section 1: Must be completed by the employee on or before their first day of work
• Section 2: Must be completed by the employer within 3 business days of the employee's first day
• Reverification: Must be completed before work authorization expires
• Retention: Forms must be kept for 3 years after hire date or 1 year after termination, whichever is later

Cost of Non-Compliance

The financial impact of I-9 violations in construction can be severe:

• Fines ranging from $281 to $2,789 per individual violation
• Project delays due to workforce disruptions
• Potential debarment from government contracts
• Reputational damage that can affect bidding opportunities
  

What’s most costly for contractors isn't just the fines – it's the operational disruption. When a significant portion of your workforce is suddenly unavailable, project timelines suffer, client relationships deteriorate, and profitability plummets.

Unique I-9 Challenges in Construction

Managing Compliance Across Multiple Job Sites

Unlike companies in industries where employees work at a single location, construction companies face the challenge of distributed workforces:

• Field supervisors often handle hiring at remote sites without proper training
• Paper documents travel between job sites and corporate offices, increasing the risk of being lost
• Consistency in verification processes varies between different project managers
• Remote locations may have limited connectivity for digital verification systems
  

Implementing a mobile-friendly verification system that allows for secure document collection at job sites while maintaining centralized oversight can help contractors overcome these challenges.

Handling State-Specific E-Verify Requirements

Construction companies operating across multiple states face a complex patchwork of E-Verify mandates:

• As of 2025, 22 states have implemented E-Verify requirements with varying scopes and penalties
• Some states (Alabama, Arizona, Florida, Georgia, Mississippi) require E-Verify for nearly all employers
• Other states (Pennsylvania, Indiana, Texas) target requirements specifically at construction companies and government contractors
• Several states impose stricter verification requirements for public works projects than for private construction
• Penalties for non-compliance range from business license suspension to debarment from government contracts

For multi-state construction operations, maintaining a consolidated compliance tracking system that accounts for each state's specific requirements is essential.

Handling Seasonal Workforce Fluctuations

Construction's seasonal nature creates specific compliance challenges:

• High volume of simultaneous hires during peak seasons stresses verification systems
• Rehiring former employees requires proper tracking of existing documentation
• Temporary workers may have documentation with varying expiration dates
• End-of-season layoffs complicate records retention
  

The most effective approach is to develop separate workflows for new hires versus rehires, combined with automated calendar tracking for employment authorization expiration dates.

High Turnover Management

The construction industry's turnover rate (approximately 21.4% annually) creates substantial documentation challenges:

• Tracking proper retention periods for short-term employees
• Maintaining accurate separation records
• Managing incomplete I-9s from employees who quit shortly after hiring
• Preparing for potential audits of former employee documentation

Creating a standardized separation protocol that includes I-9 retention status in termination checklists helps maintain compliance even with frequent workforce changes.

Special Considerations for Union Requirements and Compliance

For union contractors, additional complexities exist:

• Coordinating with union halls that may pre-screen workers
• Understanding the division of verification responsibilities
• Managing documentation for workers dispatched to a job on short notice
• Ensuring compliance with both union agreements and federal requirements

Establishing clear protocols with union representatives about document collection responsibilities and developing expedited verification procedures for rush dispatches helps maintain compliance without delaying critical projects.

Building an Effective I-9 Compliance Process

Standardized Onboarding Workflow

A construction-specific I-9 process should include:

1. Pre-hire preparation: Clear instructions and document requirements sent before employees report to work
2. First-day processing: Designated staff at each job site trained to ensure employees properly complete Section 1 themselves
3. Centralized verification: Qualified HR personnel review all documentation and complete Section 2 within the 3-day window
4. Digital storage: Secure, searchable records that travel with the employee between projects
5. Expiration tracking: Automated alerts for documentation requiring reverification

Technology Solutions for Construction I-9 Management

Selecting the right I-9 verification technology is critical for construction companies to manage compliance across distributed workforces. Look for platforms offering:

• E-Verify integration: Direct API integration that simplifies the verification process and maintains compliance with state-specific requirements
• Construction-specific features: User roles with different access levels, project-based organization, and batch processing for seasonal hiring spikes
• Enhanced security and compliance: Document authentication tools, automatic form updates when regulations change, and comprehensive audit trails
• Integration capabilities: Connections to existing field time tracking, project management, accounting platforms, and certified payroll systems

The right technology transforms I-9 compliance from a burden into a streamlined process, supporting your workforce and reducing risks.

How Miter's Work Authorization Solution Simplifies Compliance

Miter’s all-in-one work authorization platform delivers a construction-focused solution that integrates E-Verify and streamlines I-9 compliance. With Miter, your company can:

• Facilitate digital  I-9 completion: Generate E-Verify cases from digital I-9s that are completed via Miter onboarding checklists, minimizing errors and ensuring timely submissions
• Centralize job site compliance: Standardize verification processes across distributed workforces
• Handle seasonal hiring: Process high-volume onboarding efficiently with onboarding checklists, automated reminders, and admin task assignment
• Integrate with systems: Miter allows you to manage your team members alongside payroll, project management, and accounting solutions for streamlined job costing and Certified Payroll
• Track compliance: Monitor employment authorization statuses directly in the Miter dashboard, and store employee documents and records for future auditing

By combining powerful technology with construction-specific functionality, Miter reduces administrative overhead, strengthens compliance, and frees your team to focus on building.

Conclusion

For construction companies, employment authorization compliance represents both significant risk and opportunity. Those who develop robust, construction-specific verification processes gain competitive advantages through:

• Reduced operational disruptions from workforce eligibility issues
• Enhanced ability to bid on government and compliance-sensitive projects
• Improved workforce planning capabilities
• Lower risk of costly penalties and legal challenges
• Stronger overall operational discipline
  

The most successful contractors recognize that employment verification isn't just an HR function – it's a crucial operational process that supports project delivery and business growth.