E-Verify: What You Need to Know
Jenny Swinerton
Posted: 7/5/2012
Due to an increase in immigration enforcement at the federal level, more states are passing laws that require employers to use E-Verify. More than 243,000 employers currently use E-Verify, with an average of 1,000 new employers enrolling each week. Eighteen states currently mandate E-Verify for certain employers within the state, and eight of those states effectively mandate E-Verify for all employers. (Please refer to the chart below.) For example, Alabama recently passed a stringent immigration law which requires that all employers use E-Verify mandatory as of April 1, 2012.
What is E-Verify?
E-Verify is used to verify the eligibility of an employee to work in the United States. It is an Internet-based system that electronically compares information from an employee's Form I-9 to data from the U.S. Department of Homeland Security and Social Security Administration records to confirm employment eligibility. If the information matches, that employee is eligible to work in the United States. If there is a mismatch, E-Verify will alert the employer, and the employee will be allowed to work while he or she resolves the problem or until a final determination has been made as to whether the employee is authorized to work.
Do I Still Need to Complete a Form I-9?
Yes. E-Verify does not replace the legal requirement to complete and retain a Form I-9. E-Verify is used in conjunction with the Form I-9 to verify the employment authorization of new hires. After the Form I-9 has been completed, information from the Form I-9 is entered into the E-Verify database to confirm employment eligibility. The law requires that new hires be verified no later than the third business day after they start work.
Is Participation in E-Verify Required?
While participation in E-Verify is voluntary for most businesses, some companies may be required by state or federal law to use E-Verify. For example, certain states such as Alabama and Arizona now require that all employers with employees in those states use E-Verify. E-Verify is also mandatory for employers with federal contracts or subcontracts that contain the Federal Acquisition Regulation E-Verify clause. While E-Verify is not mandatory in Ohio, there is legislation pending at the federal level that would require all employers to use E-verify. In addition, we expect more states in the very near future to adopt E-Verify as a new hire requirement.
The following is a list of states that have passed some form of E-Verify laws:
States Requiring All Employers to Use E-Verify
| Alabama |
As of April 1, 2012 |
| Arizona |
Currently required |
| Georgia |
As of July 1, 2012 for employers with between 11 and 99 employees; employers with 10 or fewer employees are exempt |
| Louisiana |
Currently required; employers must either use E-Verify or retain copies of certain work authorization documents |
| Mississippi |
Currently required |
| North Carolina |
As of July 1, 2013 for employer with between 25 and 100 employees |
| South Carolina |
As of January 1, 2012 |
| Tennessee |
As of July 1, 2013 for employers with between 6 and 199 employees; employers must either use E-Verify or retain copies of certain work authorization documents |
| Utah |
Currently required for private employers with 15 or more employees |
States Requiring State Agencies and/or Employers with State or Local Contracts to Use E-Verify
| California |
No state-wide requirement, but numerous cities have E-Verify requirements |
| Colorado |
Required for state and local contractors |
| Florida |
Required for state agencies and state contractors and subcontractors |
| Idaho |
Required for state agencies |
| Indiana |
Required for state agencies and state and local contractors |
| Minnesota |
Required for state contractors and subcontractors |
| Missouri |
Required for state agencies, state contractors, and private employers who qualify for state tax incentive programs |
| Nebraska |
Required for state agencies, state contractors, and private employers who qualify for state tax incentive programs |
| Oklahoma |
Required for state and local agencies and state and local contractors |
| Virginia |
Required for state agencies |
| Washington |
No state-wide requirement, but numerous cities have E-Verify requirements |
About the author: Jenny Swinerton, Compliance Director, Sequent
Jenny Swinerton acts as the Compliance Director for Sequent, Inc. Prior to working in the PEO industry, Jenny worked as a labor and employment attorney for a large law firm specializing in employment litigation and employee relations counseling. Jenny received her juris doctorate from Capital University Law School and her undergraduate degree from the University of Toledo.
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