E-Verify (US)
A free, web-based system operated by the US Department of Homeland Security (DHS) in partnership with the Social Security Administration (SSA) that allows employers to electronically confirm new employees' work authorization by comparing Form I-9 information against government databases.
- What Is E-Verify?
- How the E-Verify Process Works
- E-Verify State Mandates
- Handling Tentative Nonconfirmations (TNCs)
- E-Verify Requirements for Federal Contractors
- E-Verify Compliance Best Practices
- E-Verify Usage Statistics [2026]
- E-Verify vs Form I-9: Key Differences
- E-Verify Violations and Penalties
- Frequently Asked Questions About E-Verify
What Is E-Verify?
Key Takeaways
- ✓E-Verify is a free, internet-based system that compares Form I-9 data against Department of Homeland Security and Social Security Administration records to verify a new hire's employment eligibility.
- ✓While E-Verify is voluntary for most private employers at the federal level, 23 states mandate its use for some or all employers, and all federal contractors and subcontractors must use it.
- ✓Employers must submit an E-Verify case within 3 business days of the employee's first day of work. Running a case before a job offer is made violates program rules.
- ✓99.6% of E-Verify cases are automatically confirmed as work-authorized. Cases that aren't confirmed result in a Tentative Nonconfirmation (TNC), which the employee has the right to contest.
- ✓E-Verify doesn't replace Form I-9. Employers must complete Form I-9 first, then submit the information through E-Verify. Both processes are required.
E-Verify answers one question: is this person authorized to work in the United States? It does this by matching the information on an employee's Form I-9 against government databases in real time. The employer enters the data, and within seconds, E-Verify returns one of three results: Employment Authorized, Tentative Nonconfirmation (TNC), or DHS/SSA Referral. The system launched as a pilot program in 1997 and became available nationwide in 2003. Today, over one million employers use it, processing roughly 40 million cases per year. For federal contractors subject to FAR E-Verify clause 52.222-54, it's mandatory. For private employers, it depends on the state. Arizona, Mississippi, Alabama, South Carolina, and several others require E-Verify for all employers. Other states mandate it only for public employers or contractors. HR teams need to understand that E-Verify is a verification tool, not a screening tool. You can't use it to pre-screen job applicants, check existing employees (except in very narrow circumstances for federal contractors), or decide who to hire based on an anticipated result.
How the E-Verify Process Works
The E-Verify process follows a strict sequence tied to Form I-9 completion. Deviating from this sequence creates compliance violations.
Step 1: Complete Form I-9
The employee completes Section 1 of Form I-9 on or before their first day of work. The employer completes Section 2 within 3 business days of the start date by examining the employee's identity and work authorization documents. This must happen before E-Verify. You can't submit an E-Verify case without a completed I-9.
Step 2: Create the E-Verify case
Within 3 business days of the employee's start date (not the hire date or offer date), log into the E-Verify system and enter the employee's information from Form I-9: name, date of birth, Social Security number, citizenship/immigration status, and document information. The system processes the query against DHS and SSA databases.
Step 3: Receive and act on the result
Employment Authorized means the employee's information matches government records. No further action needed. Tentative Nonconfirmation (TNC) means the information doesn't match. You must notify the employee in private, provide them with the TNC notice, and give them 8 federal government working days to contact SSA or DHS to resolve the mismatch. You cannot terminate, suspend, or reduce hours during the contestation period. If the employee doesn't contest or fails to resolve the TNC, the case closes as Final Nonconfirmation, and you must terminate employment.
Step 4: Close the case
Every E-Verify case must be closed, regardless of outcome. For Employment Authorized cases, the system closes automatically. For TNCs, you must close the case after the employee resolves or fails to resolve the mismatch. Keep the E-Verify case number with the employee's I-9 records. Records must be retained for 3 years after hire or 1 year after termination, whichever is later.
E-Verify State Mandates
State requirements vary widely. Some mandate E-Verify for all employers, others only for public entities or large employers.
| State | Mandate Scope | Effective Date | Penalty for Non-Compliance |
|---|---|---|---|
| Arizona | All employers | 2008 | Business license suspension/revocation |
| Mississippi | All employers (250+ employees since 2008, all since 2011) | 2008/2011 | Business license cancellation |
| Alabama | All employers | 2012 | Business license consequences |
| South Carolina | All employers | 2012 | Fines up to $1,000 per violation |
| Georgia | Employers with 10+ employees | 2013 | Business license suspension |
| North Carolina | Employers with 25+ employees | 2012 | License revocation |
| Tennessee | Employers with 6+ employees (private), all public | 2017 | Fines starting at $500 |
| Florida | All employers with 25+ employees | 2023 | Business license suspension/revocation |
| Texas | Government contractors and subcontractors | 2014 | Contract termination |
| Utah | All employers (E-Verify or alternative status verification) | 2010 | Fines, license suspension |
Handling Tentative Nonconfirmations (TNCs)
TNCs are where most E-Verify compliance mistakes happen. Mishandling a TNC exposes the employer to discrimination claims and program violations.
Common TNC causes
Name changes not updated with SSA (married employees who haven't updated their Social Security card), data entry errors (transposed numbers, misspelled names), expired work authorization documents, SSA database lags after name or citizenship status changes, and DHS database updates pending for recently issued green cards or work permits. Most TNCs result from data issues, not actual unauthorized workers. That's why 99.6% of cases ultimately confirm work authorization.
Employer obligations during contestation
When an employee chooses to contest a TNC, the employer must continue employment under the same terms and conditions. No adverse action: no reduced hours, no reassignment, no suspension, no termination. The employee has 8 federal government working days to visit SSA or contact DHS to resolve the mismatch. During this period, the employer monitors the case in E-Verify for updates. If the employee doesn't contest within 10 business days of being notified, the case becomes a Final Nonconfirmation.
Anti-discrimination protections
Employers can't use E-Verify selectively. If enrolled, you must verify all new hires, not just those who 'look foreign' or have certain names. The Immigrant and Employee Rights Section (IER) of the Department of Justice investigates discrimination complaints related to E-Verify. Penalties for document abuse, citizenship discrimination, or unfair documentary practices range from $2,000 to $5,000 per affected individual for first offenses, increasing for subsequent violations.
E-Verify Requirements for Federal Contractors
Federal contractors face stricter E-Verify requirements than other employers under the FAR E-Verify clause.
FAR clause 52.222-54 requirements
Federal contractors and subcontractors with contracts containing the E-Verify clause must verify all new hires (not just those working on the federal contract) and all existing employees assigned to the federal contract. The existing employee verification must happen within 120 days of the contract award or the employee's assignment to the contract. This is the only situation where E-Verify can be used for existing employees.
Subcontractor flow-down obligations
Prime contractors must include the E-Verify clause in subcontracts exceeding $3,500 for services or construction. Subcontractors at all tiers must enroll in E-Verify and verify their workforce. Prime contractors are responsible for ensuring subcontractor compliance, which creates supply chain compliance challenges for large government projects.
E-Verify Compliance Best Practices
Practical steps that protect the employer from penalties, discrimination claims, and audit findings.
- Train every person who creates E-Verify cases on proper procedures, TNC handling, and anti-discrimination rules. USCIS offers free online training at e-verify.gov.
- Use the E-Verify case number as a reference on the employee's Form I-9, linking the two records for audit purposes.
- Never pre-screen applicants through E-Verify. The case can only be created after the employee completes Form I-9 and starts work.
- Set up a 3-day calendar reminder after every new hire's start date to ensure the E-Verify case is submitted on time.
- Post the required E-Verify participation poster and the Right to Work poster in a visible location (physical workplaces) or provide them electronically (remote workers).
- Conduct annual self-audits of E-Verify usage to check for timeliness, completeness, and consistency across all new hires.
- Document TNC conversations with employees in writing, including the date they were notified and whether they chose to contest.
E-Verify Usage Statistics [2026]
Data points illustrating the scale and accuracy of the E-Verify system.
E-Verify vs Form I-9: Key Differences
These two processes are complementary, not interchangeable. Understanding the distinction prevents common compliance errors.
| Feature | Form I-9 | E-Verify |
|---|---|---|
| Legal basis | Immigration Reform and Control Act (IRCA), 1986 | Illegal Immigration Reform and Immigrant Responsibility Act, 1996 |
| Requirement | Mandatory for ALL US employers | Voluntary federally; mandatory in 23 states and for federal contractors |
| Timing | Section 1 by first day of work; Section 2 within 3 business days | Within 3 business days of start date, after I-9 completion |
| What it does | Documents that the employer examined identity and work authorization documents | Electronically verifies document information against government databases |
| Paper vs electronic | Paper or authorized electronic system | Online system only (e-verify.gov) |
| Audit authority | ICE (Immigration and Customs Enforcement) | USCIS (US Citizenship and Immigration Services) |
E-Verify Violations and Penalties
Violations range from procedural errors to willful misuse. Penalties escalate based on severity and repeat offenses.
| Violation | Consequence | Penalty Range |
|---|---|---|
| Failing to create cases for all new hires | Program violation, possible debarment | Loss of E-Verify access, state-level fines |
| Pre-screening job applicants | Discriminatory practice | $2,000-$5,000 per individual (first offense) |
| Taking adverse action during TNC contestation | Unlawful termination/discrimination | Back pay, reinstatement, fines up to $5,000 per individual |
| Selectively verifying employees based on national origin | Document abuse / citizenship discrimination | $2,000-$5,000 per individual (first offense), up to $25,000 for repeat |
| Using E-Verify for existing employees (non-federal contractor) | Program violation | Possible debarment from the system |
| Not posting required notices | Program violation | Warning or suspension of E-Verify access |
Frequently Asked Questions
Is E-Verify mandatory for all US employers?
Can I use E-Verify before making a job offer?
What if E-Verify is down when I need to submit a case?
Do I need to re-verify employees through E-Verify when their work authorization expires?
Can an employee sue the employer over an E-Verify issue?
Written by Adithyan RK