Federal And State Compliance Essentials

For employers, verifying the authorization of a workforce is more complex than ever. E-Verify, a federal electronic system designed to verify employment eligibility, offers a critical tool for maintaining compliance in an evolving regulatory landscape. With new state laws and updated federal guidelines taking effect in 2025, understanding E-Verify requirements is vital for ensuring adherence while supporting operational needs.

What Is E-Verify?

Administered by the Social Security Administration (SSA) and United States Citizenship and Immigration Services (USCIS), E-Verify supplements the mandatory Form I-9 process by comparing employee information against federal databases. While it remains voluntary for most employers, certain federal contractors and state laws mandate its use.

Federal E-Verify Requirements

At the federal level, private and public employers generally have no obligation to use E-Verify. However, federal contractors and subcontractors with agreements that include the Federal Acquisition Regulation (FAR) E-Verify Clause must comply. Key provisions include:

• Who is Covered: Federal contractors and subcontractors working under contracts with the FAR E-Verify Clause.
• Requirements: Verification of employees working on covered federal contracts and newly hired employees. Certain exemptions apply based on contract specifics and employee roles.

Exemptions and Special Rules:

• Contracts lasting fewer than 120 days or valued at $150,000 or less.
• Contracts involving only off-the-shelf products and services.
• Employees with valid security clearances or HSPD-12 credentials may be excluded.

State E-Verify Mandates in 2025

State-specific E-Verify requirements vary significantly, creating a patchwork of compliance obligations. Highlights include:

• All Employers: States like Alabama, Arizona, Florida, Georgia, Mississippi, North Carolina, South Carolina, Tennessee, and Utah require all employers, public and private, to verify, with criteria for private employers based on company size and location.
• Public Employers: States such as Idaho, Indiana, Missouri, Nebraska, Oklahoma, Texas, and Virginia mandate E-Verify for all public employers, often extending the obligation to public contractors.
• Additional Considerations for Public Contracts and Incentives: Many states, including Alabama, Arizona, Florida, Georgia, Idaho, Indiana, Louisiana, Michigan, Minnesota, Mississippi, Missouri, Nebraska, North Carolina, Oklahoma, Pennsylvania, South Carolina, Texas, Utah, Virginia, and West Virginia, require E-Verify as a condition for public contracts or participation in state-funded incentive programs. Employers in these states should review contract terms and incentive program requirements to ensure compliance.

What’s New for 2025?

Illinois: Updates to the Right to Privacy in the Workplace Act

Effective January 1, 2025, Illinois enhances its protections under the Right to Privacy in the Workplace Act. While E-Verify remains voluntary, employers must:

• Notify employees about E-Verify discrepancies (Tentative Nonconfirmations or TNCs) and provide instructions to contest findings.
• Certify compliance with Illinois-specific E-Verify training and posting requirements, including anti-discrimination notices.
• Prohibit retaliation against employees who challenge discrepancies or report compliance concerns.

USCIS E-Verify Records Disposal

Starting January 6, 2025, USCIS will permanently delete E-Verify cases updated before December 31, 2014. Employers must act now to download Historic Records Reports and retain them with corresponding Forms I-9 for audit preparedness.

• Why This Matters: Retaining these reports is essential for demonstrating compliance during audits or investigations and avoiding penalties from regulatory bodies.

Practical Tips for Employers

Navigating E-Verify compliance can be simplified with the following strategies:

1. Monitor Legislative Changes: Stay informed about updates to federal and state E-Verify laws to maintain compliance.
2. Preserve Documentation: Download historic E-Verify records before the January 5, 2025, deadline. Pair these records with Forms I-9 to ensure thorough documentation.
3. Leverage Technology: Utilize platforms that integrate with E-Verify, streamlining verification and recordkeeping.
4. Train Staff: Provide regular training to HR personnel on the nuances of E-Verify, including compliance with specific state laws like Illinois’ requirements.
5. Engage Legal Counsel: Consult legal experts for guidance on multi-state compliance, especially in jurisdictions with evolving mandates.

Parting Thoughts

E-Verify continues to be an invaluable tool for confirming employment eligibility, but it requires careful attention to federal and state mandates. By proactively downloading records, reviewing procedures, and training staff, employers can stay ahead of compliance challenges. As the regulatory landscape shifts in 2025, leveraging resources like the official E-Verify website and seeking expert counsel will ensure businesses can navigate these complexities with confidence. For additional insights and updates, stay connected with trusted partners and compliance experts to meet your organization’s hiring needs while mitigating risks.