Since 1986, federal law (IRCA) requires employers to verify that employees are legally authorized to work in the United States. Under IRCA it is illegal to knowingly employ unauthorized workers in the U.S. Those who knowingly hire undocumented individuals, may face civil fines, criminal penalties, or debarment from government contracts.
An exception to this rule, however, is that an individual or entity is not required to obtain an I-9 form from independent contractors or sporadic domestic workers. Therefore, Independent contractors and business owners may not have to provide work authorization to provide their services or sell their products.