Updates to Minnesota Paid Family Medical Leave, New Changes to Form I-9 Substantive Violations, and E-Verify Updates

Martin is a Shareholder and Francis is a Senior Attorney at Peters & Kappenman, P.A., a firm representing employers in a full range of employment law issues and litigation in Minneapolis, Minnesota.

Updates to Minnesota Paid Family Medical Leave

Minnesota Department of Economic and Employment Development (DEED) has updated their website with the mandatory poster for Minnesota Paid Leave. You can download it here: Minnesota Paid Leave. The poster needs to be displayed by January 1, 2026. Please note that you must provide notice to employees by December 1, 2025. We are awaiting final guidance from DEED concerning this notice and the associated language to be incorporated into employee handbooks. Updates will be communicated as soon as the guidance is issued.

I-9 Substantive Violations

Homeland Security Investigations released a memo titled, “Classification of Form I-9 Substantive Violations and Technical and Procedural Failures” earlier in 2025. Through this memo, the Executive Associate Director announced they were superseding the Virtue Memorandum (1997). The key takeaways are as follows:

First, the Virtue Memo defined a substantive violation as a failure to properly prepare, complete or present the Form I-9. The 2025 memo now defines a substantive violation as follows:

HSI defines a “substantive violation” as 1) any failure to properly complete, prepare or present a Form I-9 that could potentially lead to the hiring or continued employment if an alien who is unauthorized to work in the United States, 2) the prevention of the discovery of such an alien; 3) or substantially interfering with the effectiveness or efficiency of enforcing the employment verification system.

(emphasis in original).

The exhaustive list of substantive violations, as listed in the 2025 Memo Appendix A. Please take notice of the following violations that are now considered to be substantive violations:

• Knowingly hire, or to have knowingly recruited or referred for a free, an unauthorized alien.
• Knowingly continue to employ an unauthorized alien.
• Failure to comply with retention requirements.
• Failure to prepare the Form I-9.
• Failure to present the Form I01.
• Failure to timely prepare Section 1 and/or Section 2.
• Completion of the Spanish version outside authorized area (Puerto Rico).
• Failed to meet the standards for the electronic completion, retention, documentation, security, reproduction, electronic signature(s) for the employee, and electronic signature(s) for the employer, recruiter, or referrer for a fee, or representative, as set forth in 8 C.F.R. Section 274a.2(e), (f), (g), (h), and (i); and the HSI memorandum with subject line, “Guidance on the Collection and Audit Trail Requirements for Electronically Generated Forms I-9,” dated August 22, 2012, or as updated or superseded.
• Failed to ensure the proper completion of Section 1.
• Failed to properly complete Section 2.
• Failed to ensure the proper completion of Supplement A.
• Failed to properly complete Supplement B.
• Failed to use a version of the Form I-9 that is current at the time any part of the form is initially completed.
• Failed to ensure that an individual provides his or her other last names used (if any) or a physical address in Section 1 of the Form I-9.
• Failed to ensure that an individual provides his or her Alien Registration Number or USCIS Number next to the phrase “A lawful permanent resident” in Section 1 of the Form I-9, but only if an Alien Registration Number or USCIS Number is provided in Section 2, or Supplement B (or in an alternate applicable section or supplement pertaining to a required reverification or rehire entry) of the Form I-9 (or on a legible copy of a document retained with the Form I-9 and presented in connection with its inspection).
• Failed to ensure that an individual provides his or her Alien Registration Number, Form 1-94 Admission Number, or Foreign Passport Number on the line next to the phrase “An alien authorized to work until” in Section 1 of the Form I-9, but only if an Alien Registration Number, Form I-94 Admission Number, or Foreign Passport Number is provided in Section 2, or Supplement B (or in an alternate applicable section or supplement pertaining to a required reverification or rehire entry) of the Form I-9 (or on a legible copy of a document retained with the Form I-9 and presented in connection with its inspection).
• Failed to write the employee’s complete name at the top of Supplement A or B.
• Failed to provide the document title, identification number(s), and/or expiration date(s) of a proper List A document or proper List B and List C documents in Section 2 of the Form 1-9, but only if a legible copy of the documentation is retained with the Form I-9 and presented in connection with its inspection.
• Failed to provide the title, business name, or physical business address in Section 2 of the Form I-9.
• Failed to provide the date of hire in the attestation portion of Section 2 of the Form I-9.
• Failed to provide the date of the employer’s signature in Section 2 of the Form I-9.
• Failed to provide the document title, identification number(s), and/or expiration date(s) of a proper List A document or List C document in Supplement B of the Form I-9, but only if a legible copy of the documentation is retained with the Form I-9 and presented in connection with its inspection.
• Failed to provide the date of rehire in Supplement B, or in an alternate applicable section or supplement pertaining to a required reverification or rehire entry, of the Form I-9.

If you or your company utilize an electronic program to generate and maintain Form I-9s, pay close attention to the audit trail system. Please note that employers are liable for Form I-9 paperwork violations (regardless of the form’s method of creation, retention or storage) that are substantive in nature. If you or your company stores the Form I-9s electronically, corrections are only deemed to be proper “when a secure audit trail allowed for the review of the original submission, the corrected information, the date of the correction, and the identity of the individual who entered the correction.”

E-Verify Updates

E-Verify has now begun issuing Case Alerts to notify employers when the Department of Homeland Security (DHS) has revoked an Employment Authorization Document (EAD). In the E-Verify system, these alerts will appear under “Cases with Expiring Documents”.

If you receive this Case Alert, please make sure to consult an attorney before taking action. It is imperative to confirm whether the EAD and parole have indeed been terminated before reverifying the Form I-9. Additionally, there might be court decisions that have granted an injunction against DHS’ decision to terminate. Please note that even if the EAD has been terminated, the employee may still work through another lawful status or document.

If you have questions regarding the above or any other employment-related concerns, please contact Martin Kappenman at 952.921.4603 or mkappenman@pklaborlaw.com or Francis P. Rojas at 952.921.4624 or frojas@pklaborlaw.com, or any other attorney at Peters & Kappenman, P.A.