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Understanding E-Verify: What It Is and How It Works

E-Verify is a federal system that employers use to check whether workers are allowed to work in the United States. The U.S. Department of Homeland Security and the Social Security Administration created this system in 1996. Today, more than 900,000 employers use E-Verify to confirm their workers' employment authorization.

When a company hires someone, they typically complete Form I-9, which requires the new employee to provide identification documents. E-Verify allows the employer to electronically verify that the information on the I-9 matches government records. The system compares the employee's name, Social Security number, and other identifying information against databases maintained by the Social Security Administration and the Department of Homeland Security.

The process works in several steps. First, an employer enters the employee's information into the E-Verify system within three days of their start date. Second, the system attempts to match this information against government databases. In most cases—about 99% of verifications—the system produces an immediate result. Third, if there is a discrepancy, the employee receives notice and has an opportunity to review the information and contact the appropriate government agency to correct any errors.

E-Verify operates in all 50 states and U.S. territories. Some states have additional laws requiring or encouraging E-Verify use. Arizona, Mississippi, and South Carolina have the strictest requirements, mandating that most private employers use the system. Other states like California and Illinois have restrictions on E-Verify use. Federal contractors and subcontractors must use E-Verify as a condition of their contracts.

Practical takeaway: Understanding how E-Verify functions helps business owners and workers understand the employment verification process. E-Verify is not a standalone employment authorization document—it is a verification tool that confirms information already provided by the employee.

Who Must Use E-Verify and Current Requirements

E-Verify usage requirements vary significantly by employer type and state location. Federal law requires all federal contractors and subcontractors to use E-Verify. These include companies with contracts valued at $3,500 or more with the federal government. This requirement applies to businesses across all industries—from construction and manufacturing to information technology and professional services.

Private sector employers face a more complex landscape. While participation is generally voluntary at the federal level, many states have enacted their own E-Verify mandates. According to the American Immigration Council, as of 2024, approximately 20 states have laws requiring or strongly encouraging E-Verify use for certain categories of employers. Some states require it for all private employers, while others limit the requirement to government contractors, healthcare providers, or businesses receiving state-funded subsidies.

Specific state requirements include:

• Arizona requires most private employers to use E-Verify
• Georgia mandates E-Verify for all public employers and certain categories of private contractors
• Mississippi requires E-Verify participation as a condition of state business licensing
• Tennessee mandates E-Verify use for public employers and some private businesses
• Texas requires E-Verify for state contractors and has a voluntary system for private employers

Certain industries face particular scrutiny. Healthcare providers, childcare facilities, and schools in some states must conduct E-Verify checks. Construction companies, particularly those working on public projects, face mandatory requirements in many jurisdictions. Food service businesses and hospitality companies also face E-Verify requirements in some states.

Employers should note that E-Verify use does not replace the I-9 process. Federal law still requires employers to complete Form I-9 for all employees within three days of hire. E-Verify is an additional verification layer that confirms the information provided on that form.

Practical takeaway: Business owners should research their state and industry-specific E-Verify obligations. Requirements differ dramatically by location and business type. A company operating in multiple states must understand the varying rules in each jurisdiction where it employs workers.

Step-by-Step: How Employers Conduct an E-Verify Check

The E-Verify process begins with proper preparation. Employers must first obtain an E-Verify account through the official website (e-verify.gov). The process requires designation of a company representative who will manage the account and conduct verifications. This person, called the "company administrator," must have authorization to act on behalf of the business. Creating an account involves providing the company's legal name, address, Employer Identification Number (EIN), and other basic business information. The entire setup typically takes less than one hour.

Once the account is established, the actual verification process begins within three days of a new employee's start date. The employer enters the employee's information into the E-Verify system, including:

• First, middle, and last name exactly as shown on identity documents
• Date of birth
• Social Security number
• Driver's license or passport number and state of issuance
• Immigration status information if applicable
• Work authorization category

After submitting this information, E-Verify produces a result within seconds in the vast majority of cases. Employers receive one of three possible results: a "Match" result means the information corresponds with government records and the employee is work-authorized; a "No Match" result indicates a discrepancy between the information provided and government databases; a "Tentative Non-Confirmation" (TNC) indicates the information could not be verified and requires further investigation.

If the employer receives a "No Match" or "Tentative Non-Confirmation" result, the employee must be notified in writing within three days. The employee then has the right to contact the appropriate agency—either the Social Security Administration or the Department of Homeland Security—to correct any errors in their records. This is called the "employee right to contest" period. The employee has eight federal business days to initiate the contest process. During this time, the employer generally must keep the employee working, though some state laws differ on this point.

After the employee's contest period ends, the employer enters the case result back into E-Verify. If the discrepancy is resolved, employment may continue. If the discrepancy remains unresolved, the employer must terminate employment. The entire process is documented, creating a record of the verification attempt.

Practical takeaway: The E-Verify process requires accurate data entry and careful tracking of timelines. Employers who maintain organized records of their verification attempts and employee notifications reduce their risk of compliance problems.

Common Issues and What to Know About Discrepancies

E-Verify discrepancies are more common than many employers realize. According to government statistics, approximately 1 in 100 verification cases results in a "No Match" or "Tentative Non-Confirmation" result. For a large employer with 1,000 new hires annually, this means roughly 10 employees might receive a discrepancy notice. Most discrepancies stem from simple data entry errors rather than immigration violations.

Common sources of discrepancies include:

• Misspelled names—particularly common with names containing hyphens, apostrophes, or non-English spelling conventions
• Incorrect Social Security numbers due to transposition or misreading of handwritten documents
• Name changes not yet reflected in government databases following marriage, divorce, or legal name changes
• Recent updates to Social Security Administration or Department of Homeland Security records that haven't synchronized with E-Verify
• Recent naturalizations where citizenship status information is still processing through government systems
• Duplicate Social Security numbers or identity fraud affecting government records

When an employee receives a discrepancy notice, they have the right to contest the result. The contest process involves contacting the Social Security Administration (for Social Security number or name discrepancies) or U.S. Immigration and Customs Enforcement (for work authorization discrepancies). The employee receives instructions on how to initiate the contest in the discrepancy notice. Many discrepancies are resolved quickly once the employee contacts the appropriate agency and provides correcting documentation.

Employers must understand that they cannot refuse to hire someone based solely on an E-Verify discrepancy. Federal law prohibits employment discrimination based on a