Is E-Verify Mandatory for Employees? State Laws and Rules (2022)

Federal (All States) I-9 Penalties and Laws

Federal contractors and any of their subcontractors with qualifying contracts that contain the Federal Acquisition Regulation (FAR) E-Verify clause are required to use E-Verify to confirm employee eligibility to legally work in the United States.

Penalties: Ineligibility to receive and/or loss of federal contracts.

More Info: Executive Order 13465, amends Executive Order 12989.

Alabama

As of April 2012, all Alabama employers are required to use E-Verify. Also, as a condition for the award of any contract, grant, or incentive by the state or any political subdivision or state-funded entity, all businesses and their subcontractors shall provide documentation establishing that they are enrolled in the E-Verify program and shall use E-Verify during the performance of the contract.

Penalties: Cancellation of state government grants or incentives and suspension or revocation of business license up to 60 days, and possible debarment from state contracts. A business license can be permanently revoked on a second offense.

More Info: Enrolled Act HB 56.

Arizona

As of December 31, 2007, all Arizona employers are required to use E-Verify. In addition, government contracts can only be issued to businesses using E-Verify.

Penalties: Temporary AZ business license suspension for 10 days upon first offense; permanent AZ business license suspension upon second offense.

More Info: HB 2779 (Arizona Fair and Legal Employment Act) and HB 2745.

California

Passed in 2016, Assembly Bill 622 forbids employers to unlawfully use the E-Verify program with penalties per violation set at $10,000.

Passed in 2012, Assembly Bill 1236 prohibits state counties, cities or special districts from requiring mandatory employer participation in the E-Verify program.

Colorado

Colorado laws concerning public contracts for services (CRS 8-17.5-101 & 102, HB 06-1343) became effective in 2006. In 2008 they were amended by SB 08-193 to exclude certain services. The law requires contractors who enter into or renew public contracts for services with a state agency or political subdivision to participate in either E-Verify or the Colorado Department of Labor and Employment Program.

Penalties: Contractors may become ineligible to receive state contracts. The Colorado Secretary of State’s Office will post the names of vendors using contractors who knowingly employ illegal aliens to perform work on any public contracts for the state.

(Video) E-Verify: Employer Responsibilities and Worker Rights

More Info: SB 08-193, HB 06-1343, CRS 8-17.5-101 & 102.

Denver, CO

As of Oct. 2010, Denver city ordinance requires contractors to use E-Verify to validate new employee employment eligibility as a condition of being awarded a city contract.

More Info: Denver city ordinance

Florida

All FL State Agencies:

Effective since Jan. 2011, Executive Order 11-02 requires all agencies under the direction of the Governor to use E-Verify to confirm the employment eligibility of all current and prospective employees (including subcontractors) assigned to perform work pursuant to a state agency contract. Executive Order 11-116 clarifies that the requirement for state contractors to use E-Verify applies to “all contracts for the provision of goods and services to the state in excess of nominal value.”

Penalties: Possible denial of future county projects.

Hernando County, FL

Contractors and subcontractors doing business with Hernando County are required to use E-Verify to check the employment eligibility of all new hires.

Penalties: Possible denial of future county projects.

Bonita Springs, FL

Effective since June 2009, Ordinance 09-04 requires any vendor or contractor providing services of $5,000 or more to the city to use E-Verify to confirm the employment eligibility of any person hired during the contract term.

More Info: Executive Order 11-02, Executive Order 11-116, Legislative File 3516, City of Bonita Springs Ordinance 09-04

Georgia

All Georgia public employers as well as contractors and subcontractors performing services within the state for a public employer are required to use E-Verify for all new employees.

Private employers in Georgia with 11 or more employees must E-Verify newly hired full-time employees.

Penalties: Failure to comply could result in the suspension or denial of a business license, occupational tax certificate, or other document required to operate a business in the state.

More Info: SB 529 and SB 447, HB 87

Idaho

All state agencies and contractors are required to use E-Verify if they want a share of the state’s $1.24 billion from the economic stimulus bill.

Penalties: Immediate cancellation of the contract, reversion of unspent public funds, and monetary penalties. Every contract by a state agency for a state project or service shall include appropriate civil penalties for violating this executive order.

(Video) E-Verify: Employee Rights and Responsibilities

More Info: Executive Order 2009-10.

Indiana

As of July 2011, state agencies, political subdivisions, and companies entering into or renewing public contracts must use E-Verify to confirm the work authorization of all new hires. While E-Verify is not mandated for private employers, those who don’t use E-Verify may fail to qualify for certain tax credits on state income taxes.

More Info: SB 590.

Louisiana

State contractors are prohibited from bidding or contracting for state work without first submitting an affidavit attesting that they will use E-Verify to confirm the employment eligibility of workers throughout the project. State contractors must also obtain sworn statements from their subcontractors attesting to the use of E-Verify. The law applies to all contracts entered into or bids offered on or after Jan. 1, 2012

Penalties: Failure to complete the affidavit or use E-Verify as required would cause the work to be terminated and bar the contractor from future bidding or contract work for a period of up to three years.

Minnesota

State contracts for services in excess of $50,000 require vendors and subcontractors to certify that they have implemented or are in the process of implementing the E-Verify program for all newly hired employees who will perform work under the contract. Contracts entered into by the State Board of Investment are exempted.

Mississippi

As of 2011, all public and private employers are required to participate in E-Verify.

Penalties: Employers who do not use E-Verify may have all state contracts terminated and become ineligible for public contracts for three years, and/or may have licenses, permits, or certificates suspended for one year.

More Info: SB 2988.

Missouri

All public employers and all businesses with state contracts or grants in excess of $5,000 are required to use E-Verify.

Penalties: A violating company’s business permit and licenses shall be suspended for 14 days. Upon the first violation, the state may terminate contracts and bar the company from doing business with the state for 3 years. Upon the second violation, the state may permanently debar the company from doing business with the state.

O’Fallon, MO

Resolution 09-08-2011A requires any business with a city contract in excess of $5,000 to use E-Verify.

More Info: HB 1549, HB 390 and O’Fallon Resolution 09-08-2011A

Nebraska

Since Oct. 2009, public contractors and their subcontractors, and private employers doing contract work for the state or receiving state economic incentives must use E-Verify to confirm the legal work status of new employees. The law also includes tax incentives for private employers to use E-Verify.

Penalties: Loss of eligibility for state contract work and/or state economic incentives.

Effective since March 2012, all employers in Fremont must use E-Verify.

(Video) E-Verify Enrollment

More Info: LB 403 and Fremont Ordinance 5165

North Carolina

HB 36 (Law 2011 263) mandates that counties, cities, and private employers with 25 or more employees must use E-Verify to confirm the work authorization of new hires. The law does not apply to seasonal temporary employees who are employed for 90 or fewer days during a 12-consecutive-month period. The Commissioner of Labor may subpoena employment records relating to “the recruitment, hiring, employment, or termination policies, practices, or acts of employment” as part of an investigation of a valid complaint.

North Carolina state policy requires each state agency, department, institution, university, community college, local education agency, municipality and county to use E-Verify for all newly hired employees.

Contractors and their sub-contractors who enter into certain contracts with state agencies and local governments must also use E-Verify. The law applies to five categories of public contracts: all city and county contracts; all state contracts subject to Article 3 of Chapter 143 and all state information technology contracts procured by the Office of Information Technology Services; and all contracts subject to G.S. 143-129, which includes purchase contracts with an estimated cost of $90,000 or more, and construction or repair contracts with an estimated cost of $500,000 or more.

Penalties: Failure to comply with HB 36 can result in civil fines ($10,000+) and notification to U.S. Immigration and Customs Enforcement and local law enforcement agencies.

More Info: HB/36 Session Law 2011 263, HB 786, North Carolina state policy, G.S. 126-7.1, G.S. 160A-169.1, G.S. 153A-99.1, Article 3 of Chapter 143, G.S. 143-129.

Oklahoma

All public employers, contractors and subcontractors are required to participate in E-Verify and withhold income tax for independent contractors who do not have valid Social Security numbers.

Penalties: Ineligibility to receive state contracts.

More Info: HB 1804 (Oklahoma Taxpayer and Citizen Protection Act).

Pennsylvania

Effective since Jan 1, 2013, all public works contractors and subcontractors must use E-Verify to confirm employment eligibility of each new employee.

Penalties: First violations incur a warning letter detailing the violation, posted on the website of The Department of General Services of the Commonwealth. On a second violation, the contractor is debarred from public work for 30 days. Upon subsequent violations, the contractor is debarred from public work for 180-365 days. In the case of willful violation, the contractor is debarred from public work for a period of three years. Contractors will also incur a penalty of $250-$1,000 per violation.

More Info: SB 627 (Act 127)

South Carolina

As of July 1, 2010, all employers are required to use of E-Verify for all employees.

Penalties: Possible civil penalty of up to $1,000 per violation and the revocation of the business license.

More info: HB 4400 and SB 20.

Tennessee

Effective January 1, 2017, private employers with 50 or more employees under the same FEIN are required to use the federal E-Verify employment verification process. This applies to employees working in or outside the state of Tennessee.

(Video) E-Verify Benefits

  • Under the old law, private-sector employers had to choose a verification process before their newly hired employees could begin work:
    1. Use E-Verify or
    2. Request and maintain copies of identity and work authorization documents.
  • After January 1, 2017, private employers with fewer than 50 employees may choose to:
    1. Use E-Verify for newly hired employees or
    2. Request and maintain documents under the TLEA’s list of authorized identity and employment eligibility documents.
  • Although not required for employers with fewer than 50 employees, using E-Verify may be helpful if an audit is conducted. The service is free and user-friendly.
  • The TLEA covers not only employees but also “non-employees” as well.
  • Non-employees are defined as individuals who, while not employed directly, are paid directly by the employer for labor or services. Companies in Tennessee are required to request and maintain copies of certain identity and work authorization documents for non-employees, unless an exception applies (i.e. workers are employed by a separate company).

Penalties:

  • First-time offenders with knowing violations are subject to a $500 company penalty as well as a $500 fine for each employee and non-employee the company failed to verify.
    • For repeat offenders, the penalties may rise to as high as a $2,500 company fine plus and additional $2,500 for each employee.
  • There is also a $500 penalty for failing to enroll in E-Verify and a $500/day penalty for failing to timely produce evidence of compliance within 45 days of a final order of violation.

More Info: Tennessee Lawful Employment Act

Texas

As of September 1, 2015, state agencies and institutions of higher education are required to use E-Verify. The new law supersedes the December 2014 executive order by former Gov. Rick Perry that required state agencies and sub-contractors to enroll in E-Verify. The new law does not require public contractors to enroll.

More info: SB 374, HB 183 and HB 739

Utah

As of July 1, 2009, public employers and their contractors and subcontractors performing services in the state must use a “status verification system”, such as E-Verify or the Social Security Number Verification Service to confirm the employment eligibility of all new hires (as per Senate Bill 81-2010). Some types of contracted services are exempt from this law (contracts that involve underwriting, remarketing, broker-dealer activities, securities placement, investment advisory, financial advisory, or other financial or investment banking services).

As of July 1, 2010, private employers with 15 or more employees must use a “status verification system” such as E-Verify or the Social Security Number Verification Service to confirm the employment eligibility of all new hires (as per Senate Bill 251-2010).

Penalties: Ineligibility to enter into state contracts.

More Info: SB 0251, SB 81 and HB 116.

Virginia

As of December 1, 2012, all state agencies must use E-Verify for new hires.

As of December 1, 2013, any employer with more than an average of 50 employees for the previous 12 months entering into a contract in excess of $50,000 with any state agency must use E-Verify to confirm the work authorization of new hires

Penalties: Any employer, including contractors, found to be in violation shall be debarred from entering into a contract with any state agency for up to one year. The employer shall be released from debarment upon registration and participation in E-Verify. A contractor who fails to enroll and participate in E-Verify may be denied prequalification for contracts.

More Info: HB 737, HB 1859 & SB 1049.

Washington

Hoquiam, WA

The Hoquiam City Council passed a resolution that will require the use of the federal E-Verify program to verify that each employee of a contractor and sub contractor are legally authorized to work in the United States.

Pierce County, WA

Contractors and subcontractors doing business with Pierce County are required to use E-Verify to check the employment eligibility of all new hires, effective since February 1, 2010.

Penalties: Ineligibility for a Pierce County contract(s).

Woodland, WA

All companies awarded city contracts of $10,000 or more are required to use E-Verify to check the employment eligibility of all employees and enter into a memorandum of understanding (MOU) with the DHS within 60 days of the city extending the contract, effective since February 23, 2011.

(Video) E-Verify: The Impact of National Employment Verification on Work, Privacy, and Liberty (Jim Harper)

Penalties: Contractors who fail to E-Verify or meet the reporting deadlines may be considered in breach of contract and be suspended from bidding on future projects for two years or until they meet the requirements.

FAQs

Is E-Verify mandatory in USA? ›

Is E-Verify mandatory? For most employers, E-Verify is voluntary and the overwhelming majority of the nation's 18 million employers do not participate in the E-Verify program. By law, E-Verify is mandatory for the federal government, as well as federal contractors and subcontractors.

What happens if you dont E-Verify? ›

First-time offenders with knowing violations are subject to a $500 company penalty as well as a $500 fine for each employee and non-employee the company failed to verify. For repeat offenders, the penalties may rise to as high as a $2,500 company fine plus and additional $2,500 for each employee.

Is E-Verify mandatory in California 2022? ›

Most California employers are not required to use E-Verify.

Which law requires employers to verify an employee's legal ability to work in us? ›

The INA requires employers to verify the identity and employment eligibility of all employees hired after November 6, 1986, by completing the Employment Eligibility Verification (I-9) Form, and reviewing documents showing the employee's identity and employment authorization.

Do all employers need to use E-Verify? ›

Am I required to participate in E-Verify? No. While participation in E-Verify is voluntary for most employers, other employers may be required by State law or Federal regulation to use E-Verify.

Who is exempt from E-Verify? ›

Under the FAR, to be exempt from E-Verify, the employee must meet both of two regulatory criteria: (1) Normally performs support work, such as indirect or overhead functions; and (2) Does not perform any substantial duties applicable to the contract.

Can you stop doing E-Verify? ›

Client participation in E-Verify may be terminated voluntarily. To terminate participation for a client, E‑Verify employer agents must submit a termination request to E-Verify no later than 30 days in advance of the date the client would like to close its account.

What happens if you don't verify i-9 is 3 days? ›

If the new hire does not present acceptable identification documents by the end of three business days after the first day of work for pay, you may terminate the employee for failing to complete the I-9 form.

In what states is E-Verify mandatory? ›

To date the following states require E-Verify for some or all employers: Alabama, Arizona, Colorado, Florida, Georgia, Idaho, Indiana, Louisiana, Michigan, Minnesota, Mississippi, Missouri, Nebraska, North Carolina, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia and West Virginia.

Does the state of California require E-Verify? ›

This new law makes it more difficult for some employers in California to comply with federal and state laws relating to workers' employment eligibility. California does not mandate the use of E-Verify, and it is unlawful for state, city or county government to require an employer to use E-Verify, however, there are ...

When did E-Verify become mandatory? ›

There are, however, some exceptions: In 2008, President Bush signed an executive order requiring all federal contractors and subcontractors to use E-Verify; the order went into effect on September 8, 2009. As many as 19 states have also mandated all or some employers to use E-Verify for new hires.

What happens if you can't verify employment? ›

If you suspect the background check has been unable to verify dates of employment for a certain employer, contact the background check company and ask what you can do to facilitate the process. They may ask for additional information, ask you to contact the employer directly, or request copies of your W-2s.

Can a former employer refuses to verify employment? ›

Unless legally required, employers are not required to fill out employment verification letters for past or present employees. Companies that prefer not to provide these verification letters will often include that information as part of their employee contracts, but not everyone is aware of this.

Can HR verify employment? ›

Can employers check your employment history? Most employers have a verification process to determine the authenticity of your employment history. The most common forms of verification are referencing, employment history and gap analysis, and job title verification.

What happens if you don't E-Verify within 3 days? ›

Three-day Rule

An E-Verify case is considered late if you create it later than the third business day after the employee first started work for pay. If the case you create is late, E-Verify will ask why, and you can either select one of the reasons provided or enter you own.

Is it mandatory to E-Verify income tax return? ›

It is required for e-verification of ITR. Please note that ITR must be verified within 120 days of ITR filing. Moreover, one EVC can be used to verify only one return. Thus if you revise your return, you need to generate another EVC.

Why do employers use E-Verify? ›

E-Verify is an Internet-based system that compares information entered by an employer from an employee's Form I-9, Employment Eligibility Verification, to records available to the U.S. Department of Homeland Security and the Social Security Administration to confirm employment eligibility.

Which rules must all E-Verify employers and employer agents follow? ›

Which rules must all E-Verify employers and employer agents follow? Answer: Create a case for each newly hired employee no later than the third business day after he or she starts work for pay. Complete Form I-9 for each newly hired employee before creating a case in E Verify.

What triggers an I-9 audit? ›

An I-9 audit can be triggered for a number of reasons, including random samples and reporting by disgruntled employees (or ex-employees). Certain business sectors, for example food production, are especially susceptible to I-9 audits, and "silent raids" by ICE.

When did I-9 forms become mandatory? ›

All employers must complete and retain Form I-9, Employment Eligibility Verification, for every person they hire for employment after Nov. 6, 1986, in the U.S. as long as the person works for pay or other type of payment.

Is Background Check same as E-Verify? ›

Unfortunately, E-Verify is not a criminal background check. E-Verify is a free service that verifies the legal status employment eligibility of an individual, but does not check an individual's criminal history. E-Verify can only be used after an offer of employment has been accepted by the individual applicant.

Is E-Verify required for 1099? ›

E-Verify only verifies the employment eligibility of employees. It only checks the information in a completed Form I-9 against government records. Form I-9 does not apply to independent contractors. Therefore, since independent contractors are not employees, they are not subject to E-Verify.

Is E-Verify required for OPT? ›

An F-1 student interested in participating in the STEM OPT extension must select a prospective employer that is enrolled in the USCIS E-Verify program. This means that employers who wish to sponsor STEM OPT trainees must be E-Verify participants. Employers can learn how to enroll in the program on the USCIS website.

Does E-Verify do audits? ›

Signing up for E-Verify allows the Social Security Administration (SSA) and Department of Homeland Security to audit your data.

How often do you need to E-Verify? ›

Rehire after three years

You will complete Form I-9 again and verify the new hire in E-Verify.

What is the 3 day rule for I-9? ›

Employers must complete and sign Section 2 of Form I-9, Employment Eligibility Verification, within 3 business days of the date of hire of their employee (the hire date means the first day of work for pay). For example, if your employee began work for pay on Monday, you must complete Section 2 by Thursday of that week.

What is the penalty for late E-Verify? ›

According to the Department of Justice, the minimum fine for employing undocumented individuals will increase from $375 to $539, while the maximum will go from $3,200 to $4,313. Employers with multiple violations may face a new maximum penalty of $21,563.

Can you do E-Verify after start date? ›

The earliest you may verify a new hire in E-Verify is after he or she accepts an offer of employment and completes Form I-9. You must create a case in E-Verify for a new employee no later than three business days after the employee's first day of employment.

Is E-Verify mandatory in New York? ›

Currently, New York State does not require employers to use E-Verify. However, employers can voluntarily use the program, and municipal governments can opt to require employers to use the system.

Is E-Verify mandatory in Florida? ›

Florida's E-Verify Law (in a nutshell)

On June 30, 2020, Florida Governor Ron DeSantis signed Senate Bill (SB) 664 into law which makes the use of E-Verify mandatory for all government employers, contractors, and certain private employers in the state beginning on January 1, 2021.

Does Mcdonalds use E-Verify? ›

With an industry average error rate of 55% for the Form I-9, it's no wonder McDonald's Corporate chose LawLogix Guardian to store and manage their I-9s. LawLogix Guardian is the industry's most compliant I-9 and E-Verify solution allowing you to create perfectly compliant I-9s, every time, for every employee.

What information can be released for employment verification in California? ›

Information that can be provided includes: Dates of employment, Title (job classification), and. Salary verification (only verify the salary that is given to you is correct or not correct)

Is E-Verify mandatory in Pennsylvania? ›

Currently, there is no legislation requiring the use of E-Verify in Pennsylvania. However, Pennsylvania has already passed legislation prohibiting employment of unauthorized workers.

What happens if an employee does not complete i-9? ›

Failing to timely complete an I-9 for employee or doing a really bad job of it can result in fines of $110 to over $1000 per employee for the first infraction. These fines impact large and small business alike.

What if an employee Cannot provide i9 documents? ›

A. If an employee is unable to present the required document or documents within 3 business days of the date employment begins, the employee must produce a receipt showing that he or she has applied for the document. In addition, the employee must present the actual document to you within 90 days of the hire.

How do you verify employment eligibility? ›

Use Form I-9 to verify the identity and employment authorization of individuals hired for employment in the United States. All U.S. employers must properly complete Form I-9 for each individual they hire for employment in the United States. This includes citizens and noncitizens.

What is a red flag in a background check? ›

Inconsistency in Experience or Education

One of the most common red flags on a background check is inconsistency. If a background check for employment pulls up different information than what the candidate and their resume told you, you need to investigate the matter.

Does HR call previous employers? ›

Most times, they will speak with the human resources department or your previous supervisor. However, employers most often contact previous employers to verify you are accurately representing your experience with them, rather than get a review of your time with them.

How many previous employers are checked in background verification? ›

60% of employers conduct background checks during the hiring process. Check out our most advanced background check tool, SpringVerify, to make hiring faster, easier, more accurate, and lower risk.

Can a potential employer contact your previous employer without permission? ›

Can employers call previous employers without permission? The Answer is yes. They Can! Should you be worried?

Can a previous employer disclose why you left? ›

In many cases, if you were fired or terminated from employment, the company can say so. They can also give a reason. For example, if someone was fired for stealing or falsifying a timesheet, the company can explain why the employee was terminated.

How do I do my own employment verification? ›

How to run your own background check
  1. Verify your Social Security information. ...
  2. Obtain a credit report. ...
  3. Check your criminal record. ...
  4. Get your driving record. ...
  5. Review your education and employment history. ...
  6. Review your address history. ...
  7. Review your social media presence. ...
  8. Use a screening company.

Can a new employer verify previous salary? ›

California's ban prohibits private and public employers from seeking a candidate's pay history. Even if an employer already has that information or an applicant volunteers it, it still can't be used in determining a new hire's pay.

Do all companies do employment verification? ›

Do All Employers do Employment Verification? Although some employers choose not to verify applicants' past employment history, most companies do take this vital step in the pre-employment process.

Are employers required to respond to verifications? ›

Generally, you are not legally responsible to answer an employee verification request unless it is issued by a federal group. However, most employers do answer these requests as often as possible, even when not legally required. The most important thing is to only give the information you can legally give.

What is legal authorization to work in the United States? ›

Having an Employment Authorization Document (Form I-766/EAD) is one way to prove that you are authorized to work in the United States for a specific time period. Are required to apply for permission to work; in other words, you need to request employment authorization itself.

How do you prove you are eligible to work in the US? ›

All documents must be unexpired.
  1. U.S. passport or U.S. passport card.
  2. Form I-551, Permanent Resident Card or Alien Registration Receipt Card (this is commonly called a Green Card.) ...
  3. Foreign passport that contains a temporary I-551 stamp or temporary I-551 printed notation on a machine-readable immigrant visa (MRIV)
20 May 2022

What is required for an employment verification? ›

Employment verification typically requires basic information, such as job title, responsibilities, and dates of employment, but every state has its own laws regarding what information employers can disclose about current or former employees.

How do you check if someone is eligible to work in the US? ›

Use Form I-9 to verify the identity and employment authorization of individuals hired for employment in the United States. All U.S. employers must properly complete Form I-9 for each individual they hire for employment in the United States. This includes citizens and noncitizens.

Videos

1. E-Verify: The Impact of National Employment Verification on Work, Privacy, and Liberty (Jessie Hahn)
(The Cato Institute)
2. E-Verify could become law in Florida
(ABC Action News)
3. Background Checks E-Verify: Employee Rights and Responsibilities
(Background Checks)
4. Employment Verification Laws ( IRCA)
(The Business Professor)
5. E-verify and employment enforcement Aug 29 2018
(tuffyjon)
6. Do you know the basics of employment law?
(Business Management Daily)

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