We recently advised a client operating a US subsidiary of a Chinese tech company who faced increased scrutiny during an ICE I-9 inspection. The client was unaware that ICE had expanded what constitutes substantive violations, which now include errors previously considered minor. As a result, the client’s opportunity to correct mistakes post-inspection was significantly limited, exposing them to potential fines.

On March 16, 2026, U.S. Immigration and Customs Enforcement (ICE) updated its Form I-9 Inspection Fact Sheet, expanding the classification of substantive violations. This update marks a shift from the 1997 USCIS Virtue Memorandum guidance, narrowing the scope for employers to fix errors after ICE inspections. Specifically, errors in Section 1 and Section 2 of Form I-9 that were once deemed procedural may now trigger substantive violation findings, increasing employer liability.

From our perspective serving Chinese corporate clients with US operations, this change is critical. Many of our L-1 and EB-1C clients’ US subsidiaries rely on timely and accurate I-9 compliance to maintain workforce eligibility. The expanded violation categories mean that even minor documentation or procedural missteps could lead to enforcement actions, disrupting business operations and immigration benefits.

Attorney Insight
Given this, we recommend two immediate actions: First, employers should conduct a comprehensive internal audit of all Form I-9s, focusing on completeness and accuracy, especially verifying Section 1 employee attestations and Section 2 employer reviews. Second, update training for HR personnel responsible for I-9 completion and retention, emphasizing the new substantive violation definitions outlined by ICE. Employers should also review their document retention policies to ensure compliance with 8 CFR §274a.2(b)(2)(i) and related regulations.

In practice, we have seen cases where employers failed to re-verify expiring work authorization documents timely, which ICE now treats as a substantive violation rather than a procedural one. One client’s US entity had to pay a penalty exceeding $4,000 due to this oversight—a cost that could have been avoided with updated compliance protocols.

Attorney Insight
While this ICE update does not directly affect visa adjudications such as L-1 or EB-1C petitions, from our experience, enforcement actions can indirectly impact the stability of a US operation’s workforce and thus the overall immigration strategy. Maintaining impeccable I-9 compliance protects not only current employees but also supports long-term visa and green card processes.

We also note that the reduced availability of corrective measures means that proactive compliance is more important than ever. Waiting for an ICE inspection to identify issues will no longer provide a meaningful opportunity to fix them. Employers should therefore integrate I-9 audits into regular HR workflows and document these efforts for potential future inquiries.

To summarize, for Chinese enterprises managing US subsidiaries under L-1 or EB-1C categories, ICE’s expanded I-9 inspection standards require immediate attention. We advise scheduling an internal compliance review this month and retraining your HR team on the updated ICE guidelines. This approach will minimize risks and safeguard your US operations’ personnel eligibility.

Data Sources

[1] U.S. Immigration and Customs Enforcement (ICE), ice.gov [2] Code of Federal Regulations, 8 CFR §274a [3] USCIS Policy Manual, 8 CFR 214.2(h)