E-Verify is an online employee verification system administered by the Social Security Administration (SSA), U.S. Department of Homeland Security (DHS), and U.S. Citizenship and Immigration Services (USCIS). E-Verify is free to use and exists to help determine an individual’s employment eligibility.
The E-Verify system compares the information entered on an individual’s Form I-9 against records maintained in the SSA and USCIS databases. Every employer is responsible for ensuring proper completion of the Form I-9 for all individuals hired for employment in the United States. Therefore, the first step is for an employer to complete a Form I-9 for the individual new-hire. Then, the employer may enter the information from the Form I-9 into E-Verify stem. The system provides either of two results: “Employment Authorized” or “Tentative Nonconfirmation” (TNC). A TNC notification means that the information entered into E-Verify did not match the government databases.
Although employers in some states are required to E-Verify each of their employees, some states are not. Make sure you know your state laws and how E-Verify can impact your company’s risk.
Federal Regulations (Applies to All U.S. States)
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.
Most California employers are not required to use E-Verify. In 2012, it became unlawful in California for the state or a city, county, or special district to require an employer to use an electronic employment verification system, such as E-Verify. However, some California employers, such as those performing work under a federal contract, may be required by federal law to use E-Verify.
In October 2011, Gov. Jerry Brown signed California AB 1236 into law. This law took effect on January 1, 2012 and prohibits the state of California and any of its cities, counties, or special districts from requiring an employer (other than a government entity) to use E-Verify as a condition of receiving a government contract, applying for or maintaining a business license, or as a penalty for violating licensing or other similar laws.
California employers may use E-Verify on a voluntary basis or as required by federal contracts (see Federal Acquisition Regulation (FAR) E-Verify Clause).
On January 1st, 2016, California AB 622 was put into effect to prohibit employers from using E-Verify to check the employment authorization status of existing employees, or applicants who have not yet been offered employment.
Unless the use of E-Verify is required by federal law or as a condition of receiving federal funds, employers cannot use the system to determine the immigration status of these individuals. AB 622 requires employers using E-Verify to comply with employee notification procedures.
California employers must notify individuals of any notification issued by the Social Security Administration and Department of Homeland Security containing information specific to the employee or applicant’s E-Verify case, or any tentative non-confirmation notice. Employers that violate the new law face steep penalties: Each unlawful use of the E-Verify system can result in civil penalties of up to $10,000.
California County Regulations
All county regulations have been nullified by California State Law AB 1236.
Still Using Paper Form I-9s?
76% of paper Form I-9s contain at least one costly error. That’s why Tracker offers full-service paper form digitization, manual key entry, and remediation solutions to ensure complete compliance for every new hire, before submitting to E-Verify.