E-Verify: Compliance Guide for Employers 

Employers in the United States face increasing pressure to comply with federal regulations concerning the employment eligibility of their workers. One of the most important tools for verifying work authorization is E-Verify — a government-operated online system that compares information from an employee’s Form I-9 to records available to the Department of Homeland Security (DHS) and Social Security Administration (SSA).

TLDR: E-Verify is an internet-based system allowing employers to confirm the legal work status of their employees. It’s free, easy to use, and helps companies comply with federal employment laws. While not mandatory for all employers, participation is often required under certain state laws or as a condition for federal contracts. Understanding how to register, use, and stay compliant with E-Verify is essential for avoiding legal risks and penalties.

What is E-Verify?

E-Verify is an electronic employment eligibility verification system developed by the U.S. Department of Homeland Security in partnership with the SSA. Its primary use is to assist employers in verifying that newly hired employees are authorized to work in the United States.

E-Verify compares employee-provided data from the Form I-9 to federal databases. Response times are generally fast—most verifications occur within seconds. If the information matches, the employee is authorized to work. If it doesn’t, the system returns a “Tentative Nonconfirmation” (TNC), prompting further action to resolve discrepancies.

Is E-Verify Mandatory?

Federal law does not mandate E-Verify use for most private employers. However, it is required for:

• Federal contractors and subcontractors with the E-Verify clause in their contracts
• Employers operating in states where E-Verify participation is mandated
• Companies seeking certain state or local incentives, permits, or licenses

Employers should familiarize themselves with state-specific legislation to determine if E-Verify is mandatory in their jurisdiction.

How to Enroll in E-Verify

Enrollment is done online through the E-Verify website. Employers must complete the following steps:

1. Create an account: Go to e-verify.gov and click on “Enroll in E-Verify.” Provide company details and identify a company administrator.
2. Sign a Memorandum of Understanding (MOU): Agree to the terms and responsibilities of participation.
3. Complete training: Module-based online training is mandatory for administrators using the system for the first time.

Using E-Verify: Step-by-Step Process

Once enrolled, employers use E-Verify after completing a Form I-9 for all new hires. Follow these steps:

1. Gather information from Form I-9: Input details such as the employee’s name, Social Security Number, and work authorization status into the system.
2. Submit the case: The system crosschecks the data against DHS and SSA records.
3. Review the result: The system returns a result, typically within seconds.
4. Take appropriate action: If the result is a TNC, the employer must allow the employee to contest it without taking adverse action during the process.

Important: Employers must submit the E-Verify case within three business days of the employee’s first day of work for pay.

Common Results and What They Mean

The following are common outcomes of an E-Verify case:

• Employment Authorized: The employee’s information matches government records.
• Tentative Nonconfirmation (TNC): Information does not match; the employee can choose to contest the finding.
• Final Nonconfirmation: After contesting, the discrepancy remains unresolved; the employee is not authorized to work.
• Case Incomplete: More information is needed to continue the process.

Legal Responsibilities for Employers

E-Verify compliance extends beyond just using the system. Employers must follow specific procedures to stay compliant:

• Non-discrimination: Employers may not use E-Verify to screen job applicants prior to a job offer or to discriminate against employees based on national origin or immigration status.
• Timing: E-Verify must be used after the Form I-9 is completed and within three business days of the employee’s start date.
• Recordkeeping: Employers should print and retain E-Verify case results and store them with the Form I-9 for the required document retention period.
• Training: Users must complete required training modules and keep certifications up to date.

Penalties for Non-Compliance

The consequences of non-compliance can be severe and include:

• Fines ranging from hundreds to thousands of dollars per violation
• Loss of business licenses or government contracts
• Federal audits or investigations
• Damage to company reputation and employee trust

Businesses that fail to correct E-Verify misuse or do not follow proper procedures may also face immigration-related discrimination claims.

Best Practices for E-Verify Compliance

To ensure smooth operations and reduce the risk of violations, employers should adopt these best practices:

• Designate trained personnel: Assign E-Verify responsibilities to individuals who understand the system and employment laws.
• Audit regularly: Conduct internal audits of E-Verify and Form I-9 records to ensure accuracy and consistency.
• Develop policies: Create a clear written policy covering the E-Verify process, employee communications, and data handling procedures.
• Stay informed: Regularly check DHS announcements or subscribe to newsletters for changes to E-Verify legislation or system updates.
• Respect privacy: Handle personal information with confidentiality, as required by law.

Who Should Not Use E-Verify?

Employers may not use E-Verify in the following scenarios:

• To prescreen job applicants before making a job offer
• To reverify current employees (except in limited cases like federal contracts)
• For employees working outside the United States

Improper use of E-Verify can lead to civil penalties and violations of anti-discrimination provisions in immigration laws.

Conclusion

E-Verify can be a valuable compliance tool for U.S. employers. When used properly, it helps confirm work authorization and ensures a lawful workforce. But its success depends on understanding how the system works, following required procedures, and maintaining strict adherence to anti-discrimination laws. By staying informed and proactive, employers can benefit from E-Verify while avoiding potential pitfalls.

Frequently Asked Questions (FAQ)

• Q: Is E-Verify free for employers?
  A: Yes, the E-Verify system is free to use for all employers.
• Q: Can an employer use E-Verify before a job offer is made?
  A: No. E-Verify may only be used after an individual is hired and has completed the Form I-9.
• Q: What happens if an employee receives a TNC?
  A: The employer must notify the employee and give them the opportunity to contest the result. The employee cannot be terminated solely due to a TNC.
• Q: Can E-Verify be used for existing employees?
  A: Only in certain cases, such as federal contractors who are obligated to verify existing staff working under a covered contract.
• Q: How long should E-Verify records be retained?
  A: Keep E-Verify case documentation for the same period as the Form I-9 — either three years after the date of hire or one year after the date of termination, whichever is later.