Mergers, Acquisitions, & Restructuring: Your 2025 Blueprint for I-9 Compliance Risk & Readiness

When Business Deals Meet Compliance Deadlines

Mergers, acquisitions, and restructuring (M&A/R) bring more than just changes to ownership or organizational charts—they also create complex compliance challenges. Among the most critical, yet often underestimated, is managing Form I-9 obligations. Aligning different verification processes, auditing inherited records, and meeting retention rules can directly affect deal value and post-close stability. In 2025’s heightened enforcement environment, getting it right is non-negotiable.

The Hidden Liabilities Lurking in Acquisitions

When companies acquire another business, they inherit not only employees but also the employment verification records—and liabilities—of the acquired entity. This can include: 

• Retention obligations that carry over: You must keep inherited I-9s for at least three years after the employee’s hire date or one year after employment ends, whichever is later (ICE Form I-9 Inspection).
• Incomplete or outdated I-9 forms: Missing information, missing signatures, or use of retired editions.
• Missed reverifications: Especially for employees with expiring work authorization.
• Inconsistent E-Verify usage: Gaps in enrollment or case management across locations.
• Improper storage practices: Records stored in unsecured systems, inaccessible formats, or scattered locations.

With substantive violations costing up to $28,619 per form after DHS’s 2025 penalty adjustment, even a single inherited flaw can create significant financial and operational risk.

FTC/DOJ data shows 1,805 reportable transactions in FY 2023 (HSR Annual Report FY2023), meaning thousands of deals face these risks every year. Without a proactive plan, I-9 missteps can lead to costly fines, delayed integrations, and reputational damage.

Aligning Two Employers’ I-9 and E-Verify Programs in a Merger

Mergers bring the unique challenge of integrating two complete sets of I-9 records and often, different compliance cultures. Key priorities include:

• Reconciling E-Verify accounts: Ensure each hiring site is mapped correctly and eliminate duplicate or inactive accounts.
• Policy harmonization: Standardize remote verification processes, document acceptance rules, and audit protocols across the combined workforce.
• Retention synchronization: Unify retention schedules to ensure no records are discarded prematurely or kept beyond legal requirements (USCIS Handbook for Employers M-274).
• Cross-training HR teams: Ensure both legacy HR groups understand the unified process before integration to avoid inconsistent practices.

Compliance When the Company Restructures Without a Sale

Business restructuring—such as spinning off divisions, changing EINs, consolidating departments, or closing worksites—can shift I-9 responsibilities without transferring ownership. Common pitfalls include:

• Losing custodianship: When teams move or departments merge, access to I-9 files can be disrupted.
• Missed reverifications: Employees with expiring work authorizations can be overlooked during internal reorganizations.
• Addressing name or EIN changes: If an EIN changes, employers may need to treat existing staff as new hires for I-9 purposes (USCIS M&A Guidance).
• Onboarding consistency: Divisions with different onboarding platforms or procedures should be aligned to a single standard to prevent discrimination risks (DOJ IER Guidance).

How to Protect Deal Value Through I-9 Planning

Across mergers, acquisitions, and restructurings, the same fundamentals apply:

1. Pre-event audit — Sample records for errors, outdated forms, and lapses in E-Verify compliance.
2. Risk allocation — Define responsibility for compliance gaps in contracts or internal plans.
3. Integration planning — Decide on record retention versus re-completion and apply it consistently.
4. Centralized storage — Use secure systems that can produce complete I-9s within three business days of an ICE notice.

Clear I-9: Your M&A/R Compliance Command Center

Clear I-9 is built to simplify compliance in complex, multi-entity environments—making it ideal for M&A and restructuring events.

• One platform for all entities: Consolidates legacy systems into a single, secure repository with role-based access.
• Built-in E-Verify integration: Standardizes case creation and closure across all hiring sites.
• Audit-ready tools: Automated error detection, retention calculators, and time-stamped audit trails to satisfy ICE inspection timelines.
• Bulk remediation: Clean inherited files quickly with guided corrections and documentation tracking.
• Change management support: Includes policy templates, manager training, and onboarding guidance for newly combined teams.

Keep Your Deal Moving and Your Records Clean

M&A transactions and corporate restructurings demand more than just legal and financial due diligence—they require a clear, consistent approach to I-9 compliance. With audits on the rise, penalties increasing, and multi-state requirements in play, ignoring I-9 obligations can turn a promising deal into a costly liability. Clear I-9 centralizes and streamlines every aspect of I-9 and E-Verify compliance, helping organizations protect deal value, speed integration, and stay audit-ready from day one.

Let HRlogics handle your compliance so you can focus on realizing the full value of your deal. 

Schedule a Clear I-9 demo today and streamline your next transaction from day one.

ompliance complexity into clarity.