The Market Basket I-9 Case and What Employers

When shoppers walk into Market Basket, a beloved New England grocery chain, they expect fresh produce, friendly cashiers, and low prices. What they don’t expect is the sudden absence of dozens of workers after a federal audit. Yet in July 2025, that’s exactly what happened in New Bedford, Massachusetts, when Market Basket suspended 47 employees following an I-9 audit initiated by the Department of Homeland Security (DHS).

https://newbedfordlight.org/new-bedford-market-basket-suspends-47-immigrants-after-i9-audit/

The case is a reminder that I-9 compliance is not just paperwork — it’s survival for both businesses and employees.

What Happened at Market Basket

The DHS audit, launched in 2023, uncovered inconsistencies in employee work authorization documentation. Market Basket responded by requesting updated Social Security cards and, when discrepancies couldn’t be resolved, suspending employees pending verification.

Across the company, the issue extended further — 167 workers were found to lack legal authorization to work. Market Basket noted that employees may return if they provide updated or corrected documentation, but the immediate disruption was severe.

The Employer’s Burden: I-9 Compliance and Liability

The Market Basket case highlights a fundamental truth: Employers — not payroll providers or HR systems — are ultimately responsible for verifying identity and work authorization.

Here’s why this matters:

• I-9 audits can go back years. Even long-standing employees are subject to scrutiny if their documentation is incomplete or expired.
• Employers cannot outsource liability. Payroll providers and HCM platforms help process and store forms, but they don’t physically verify documents. That responsibility, and risk, remains with the employer.
• Audits disrupt operations. Beyond fines, businesses face workforce shortages, retraining costs, and reputational damage.

Lessons for Employers

The Market Basket case offers several important lessons:

1. Be Proactive, Not Reactive
   Waiting for a DHS audit is a recipe for crisis. Regular internal audits of I-9 records, backed by proper document verification, reduce exposure.
2. Leverage Technology, but Don’t Rely on It Alone
   Payroll and HCM systems can store forms and connect to E-Verify, but they cannot replace the employer’s duty to verify identity documents in person (or via DHS-approved remote biometrics verification).
3. Plan for Workforce Continuity
   Losing dozens of employees at once impacts service, morale, and revenue. Employers should have contingency plans in industries with high immigrant workforces.
4. Balance Compliance with Humanity
   Market Basket allowed employees to return if documents were updated, offering a pathway back to work. Employers can uphold compliance without abandoning their people.

Why This Matters Beyond Market Basket

This is not just a grocery store problem. Industries that rely on frontline and immigrant workers — hospitality, healthcare, restaurants, logistics, and retail — face similar risks.

With federal enforcement tightening, more audits are expected.

The Market Basket example is a cautionary tale: I-9 compliance is not optional. It’s an operational, legal, and human challenge every employer must take seriously.

Final Word

The Market Basket audit proves how one missing form or overlooked expiration date can ripple into lost jobs, strained communities, and multimillion-dollar impacts.

I-9 compliance isn’t a one-time task — it’s an ongoing discipline. Employers need the right stack of safeguards:

• I-9 → the legal baseline
• E-Verify → federal database check for work authorization & SSN
• Biometrics → identity proofing to stop impersonation

Together, they form a full compliance shield.

And here’s the reality: Market Basket shows how quickly a business can get ICE’d when compliance slips.

At VerifiID, we help employers get De-ICED:

• Biometrics ID & work authorization verification
• I-9 automation with audit-ready records
• E-Verify & Compliance Copilot support

If this story made you pause, now’s the time to get audit-ready.

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