What Is E-Verify? The Complete Employer Guide

Updated April 2026
Compliance Guide
18 min read
Form I-9
Collected by employer
+
E-Verify
Confirmed by DHS + SSA
Work Authorization Verified
Both required. Neither replaces the other.

How E-Verify Works: The 7-Step Process

E-Verify works by electronically comparing information from an employee's completed Form I-9 against Department of Homeland Security (DHS) and Social Security Administration (SSA) records. The process starts only after Form I-9 is complete — E-Verify never replaces the I-9, it builds on it.

Step 1: Complete Form I-9

The employee fills out Section 1 on or before their first day of work. The employer completes Section 2 within three business days by examining identity and work authorization documents. The employee chooses which documents to present from the Lists of Acceptable Documents — either one List A document or one List B plus one List C document. If the employer uses E-Verify, the employee must provide a Social Security number (SSN) — unlike the standard Form I-9, where SSN is optional.

Step 2: Create an E-Verify case

The employer enters the employee's I-9 information into E-Verify. This must happen no later than the third business day after the employee starts work for pay. Missing this deadline creates a compliance record.

Step 3: Photo matching (when triggered)

If the employee presented a U.S. passport, passport card, Permanent Resident Card (Form I-551), or Employment Authorization Document (Form I-766), E-Verify displays a government photo for comparison. The employer compares this to the document photo — not to the employee's appearance. These documents must be copied and retained with Form I-9.

Step 4: System checks government records

E-Verify compares the information against DHS and SSA databases. For most employees, this takes a few seconds.

Step 5: Receive a case result

E-Verify returns one of six results: Employment Authorized, E-Verify Needs More Time, Tentative Nonconfirmation (Mismatch), Case in Continuance, Close Case and Resubmit, or Final Nonconfirmation.

Step 6: Resolve any mismatches

If a TNC is issued, the employer must notify the employee privately within 10 federal government working days. If the employee contests, they have eight working days from referral to contact DHS or visit SSA. The employer cannot terminate, suspend, or take any adverse action during this period.

Step 7: Close the case

Employment Authorized cases close automatically. All other results require the employer to close manually and record the case number on Form I-9.

Form I-9 vs. E-Verify: Key Differences

Form I-9
E-Verify
Legal status
Mandatory for all U.S. employers
Voluntary for most; mandatory for federal contractors and in 20+ states
What it does
Documents identity and work authorization from physical documents
Electronically confirms I-9 info against DHS and SSA records
Social Security number
Optional (employee may decline)
Required — must provide SSN
List B documents
Photo not required
Photo required on all List B documents
Document examination
Physical presence required
Enrolled employers can use DHS alternative procedure for remote examination
Reverification
Must be used for expired authorization
May NOT be used for reverification
Scope
Every employee hired after Nov. 6, 1986
New hires only (existing employees only for certain federal contractors)

Source: USCIS I-9 Central, "Special Rules for E-Verify Users"

E-Verify Case Results: What They Mean

E-Verify returns six possible results. Each requires different action.
Case Result
What It Means
Employer Action
Employment Authorized
Info matched. Eligibility confirmed.
None — closes automatically. Record case number.
E-Verify Needs More Time
DHS needs additional time. Auto-referred.
Check periodically. Most resolve in 24 hrs. No adverse action.
Tentative Nonconfirmation (Mismatch)
Info doesn't match records. Does NOT mean unauthorized.
Notify employee within 10 working days. Follow referral process. No adverse action.
Case in Continuance
Employee contacted DHS/SSA, more time needed.
Keep checking. Employee continues working. No adverse action.
Close Case and Resubmit
Info entered incorrectly.
Close case, fix error, create new case.
Final Nonconfirmation
Cannot confirm eligibility after contest period.
Close case. May terminate employee.

Handling a TNC Correctly

A TNC is the result that causes the most confusion — and the most compliance violations:

  1. Notify the employee in private within 10 federal government working days. Download the Further Action Notice.
  2. Review the notice together. If you entered info incorrectly, close the case and create a new one.
  3. Employee decides whether to contest.
  4. If contesting: Refer the case. Employee has 8 federal government working days to call DHS or visit SSA.
  5. If not contesting: Final Nonconfirmation. May terminate.
  6. If no response by day 10: Close the case.

"The biggest mistake I see with TNCs is panicking and taking immediate action — reassigning, cutting hours, or terminating on the spot. That violates E-Verify rules and exposes the company to discrimination claims. The employee has a legal right to contest, and most TNCs resolve with a simple records correction."

PD
Patricia Duarte
Director of Compliance, i9 Intelligence

Who Is Required to Use E-Verify?

E-Verify is voluntary at the federal level for most private employers — but the number who can skip it is shrinking every year. More than 20 states now have some form of E-Verify mandate, and the list grows every legislative session. Four categories of employers are currently required to participate.

Federal Contractors

Employers with contracts containing the FAR E-Verify clause (FAR 52.222-54) must enroll. Applies to prime contractors and subcontractors at any tier. May also be required to verify existing employees on covered contracts. See our federal contractor E-Verify guide for the full FAR clause 52.222-54 requirements.

State Mandates

More than 20 states have some form of E-Verify requirement. See our full state-by-state breakdown for effective dates and employer-size thresholds.

Requirement Level
States
Details
All employers
Alabama, Arizona, Mississippi, South Carolina
Required regardless of size
Threshold-based
Florida (25+), Georgia (10+ private; all public), North Carolina (25+), Tennessee (50+ or 6+ in certain industries)
Required once threshold met
Public/state contractors
Colorado, Idaho, Indiana, Louisiana, Minnesota, Missouri, Montana, Nebraska, Oklahoma, Pennsylvania, Texas, Utah, Virginia, West Virginia
Government agencies and/or state contract holders
Industry-specific
Ohio (nonresidential construction, effective March 19, 2026)
Specific industries only

STEM OPT Employees

Any employer with a foreign national on a STEM OPT extension must be enrolled in E-Verify. Applies regardless of company size, state, or industry. Many companies discover this only after hiring their first STEM OPT employee.

Local Mandates

Some U.S. cities and counties maintain their own E-Verify ordinances, though many have been preempted by state law or repealed in recent years. The most notable active local mandates are Washington County, Utah (for businesses in unincorporated county areas) and Lakewood, Washington (for city contractors). If you're unsure whether a local rule applies to your business, see our guide to who must use E-Verify for the current list and jurisdiction details.

Why Use E-Verify Even If It's Not Required

Legal safe harbor in ICE audits. Good-faith E-Verify use creates a rebuttable presumption you didn't knowingly hire an unauthorized worker. With penalties from $2,861 to $28,619 per violation and enforcement at its highest level in a decade, this is the single strongest audit defense available.

Fraud detection beyond document inspection. E-Verify cross-references employee information against DHS and SSA databases, catching document fraud that a visual inspection of Form I-9 documents alone would miss. Photo matching — triggered by U.S. passports, passport cards, Permanent Resident Cards, and Employment Authorization Documents — adds another verification layer by comparing government photos against the physical document. Employers relying solely on Form I-9 are trusting their eyes to catch increasingly sophisticated document fraud.

No-Match letter prevention. E-Verify catches SSA mismatches at the point of hire rather than months later through an SSA no-match letter. This gives you the opportunity to resolve issues immediately — before they compound across your workforce and create a pattern that triggers ICE interest.

Preparation for a federal mandate. Bills including the Legal Workforce Act have been introduced repeatedly. With state mandates expanding and the current enforcement posture, the question is when, not if. Employers already enrolled will be ready.

Access to remote document examination. Only E-Verify-enrolled employers can use the DHS alternative procedure for remote Section 2 over live video call. Without enrollment, you cannot use this procedure — critical for remote and multi-state hiring. This is especially relevant in states that mandate E-Verify, where employers often hire across state lines and need a compliant way to handle Section 2 remotely.

"Most of our clients who enroll voluntarily do it for one of two reasons: safe harbor protection in case of an ICE audit, or preparing for a federal mandate. Either way, the cost of not being ready is much higher than the cost of setting it up now."

JB
Jed Butler
CEO, i9 Intelligence

Not sure if you need E-Verify?

Use our free I-9 Risk Calculator to estimate your compliance exposure, or schedule a free compliance call with our team.

How to Enroll in E-Verify

Don't want to manage E-Verify yourself?
i9 Intelligence is a designated E-Verify Employer Agent. We handle enrollment, the MOU, required training, case submissions, TNC resolution, and ongoing compliance — so your HR team never has to log into a government portal.
Setup takes days, not weeks. Your team avoids the learning curve, the paperwork, and the risk of missing a three-business-day deadline.
Schedule a free compliance call

If you'd rather enroll directly with USCIS, here's the process:

1. Determine your obligation. Confirm whether you are required to use E-Verify (federal contract with FAR clause 52.222-54, state mandate, STEM OPT employees, or court order) or enrolling voluntarily. This determines scope — some mandates cover all new hires, others cover only employees on a specific contract.

2. Register and sign the MOU. Visit everify.uscis.gov/enroll and enter your company's legal name, address, FEIN, and number of employees. You will electronically sign the Memorandum of Understanding — a legally binding agreement between your company, DHS, and SSA. During enrollment, you choose an access method: Employer (most common — create your own cases), E-Verify Employer Agent (third party manages cases for you), Corporate Administrator (central office manages accounts across multiple locations), or Web Services (API integration for high-volume employers).

3. Complete required training. All users — program administrators and general users — must complete the free online E-Verify tutorial before creating or managing cases. Every account must have at least one program administrator. Corporate administrators must attend a scheduled web-based training session.

4. Post required notices. Display the E-Verify Participation Notice and the Right to Work Poster (both in English and Spanish) where current and prospective employees can see them. You may display digitally, online, in hard copy, or include with job application materials.

5. Create your first case. Log in at everify.uscis.gov/emp, navigate to Create New Case, and enter the employee's Form I-9 information. You will receive your E-Verify Company ID number — a 4-to-7-digit identifier that appears on every page of your MOU and is needed for account administration and correspondence.

E-Verify+: A newer option where employees enter their own I-9 info electronically. Available through the Employer access method only.

9 Common E-Verify Pitfalls and Myths

1. Missing the Three-Business-Day Deadline

E-Verify cases must be created no later than the third business day after the employee starts work for pay. This is one of the most frequently violated rules — particularly at companies with high-volume or seasonal hiring. If you discover a missed deadline, create the case immediately and provide a reason for the delay. Late cases are flagged in the system and create a compliance record visible during audits.

2. Inconsistent Application Across Locations

If your company uses E-Verify, you must use it for all new hires at enrolled sites — not just some. Selectively running cases based on an employee's appearance, accent, national origin, or perceived immigration status is discrimination under section 274B of the INA. E-Verify monitors user activity to identify patterns of selective use.

3. Taking Premature Action on TNCs

You cannot fire, suspend, reduce hours, withhold pay, delay training, or take any adverse action against an employee who receives a TNC. The employee has a legal right to contest, and most TNCs resolve with a simple records correction at SSA or DHS. Taking action before a Final Nonconfirmation exposes you to both E-Verify compliance violations and anti-discrimination claims.

4. Using E-Verify to Pre-Screen Applicants

E-Verify prohibits prescreening. You may only create a case after an employee has accepted a job offer and completed Form I-9. Creating a case before this point — or using E-Verify results to decide whether to extend an offer — violates program rules and federal anti-discrimination law.

5. Assuming E-Verify Replaces Form I-9

E-Verify supplements Form I-9 — it does not replace it. Every employer in the United States must complete and retain Form I-9 for each employee regardless of E-Verify participation. Skipping the I-9 because "we run E-Verify" is a separate violation that carries its own penalties of $288 to $2,861 per form.

6. Assuming a TNC Means the Employee Is Unauthorized

A TNC means the information did not match government records — not that the employee is unauthorized to work. Common causes include name changes not reported to SSA, data entry errors by the employer, outdated DHS records, or a pending immigration status update. The employee has the right to resolve it.

7. Assuming E-Verify Increases Liability

This is backwards. Proper E-Verify use reduces audit risk and provides the good-faith safe harbor defense — a rebuttable presumption that you did not knowingly hire an unauthorized worker. The system gives employers a documented compliance trail. Liability increases only when E-Verify is misused through selective application, premature termination on TNCs, or prescreening.

8. Relying on Document Copies for Protection

Keeping copies of employee documents is not a substitute for proper E-Verify and I-9 compliance. Document copies are mitigating factors in an audit, not liability shields. E-Verify does require employers to copy certain documents (U.S. passport, passport card, Permanent Resident Card, and EAD) when photo matching is triggered — but those copies must be stored securely with Form I-9 and are not a standalone defense.

9. Skipping Required Training

Every E-Verify user must complete the online tutorial before creating or managing cases. This is not optional — it is a condition of the MOU. Untrained users make more errors, miss deadlines, and mishandle TNCs, all of which create compliance exposure. When staff turns over, the new user must complete training before accessing the system.

"Companies enroll in E-Verify, assign it to someone in HR, and never follow up on training or process documentation. Six months later — late cases, inconsistent use, no idea how to handle a mismatch. Enrollment is the easy part. Ongoing compliance is where employers fail."

PD
Patricia Duarte
Director of Compliance, i9 Intelligence

The common thread: E-Verify is simple to enroll in, but the ongoing process — deadlines, TNC handling, consistent application — requires a system, not just a login. Software with built-in automation eliminates most of these risks before they start.

Does E-Verify Cost Anything?

E-Verify itself is completely free — $0 enrollment, $0 per case, $0 subscription. The barrier to entry is zero.
Running it properly requires time and process — and cutting corners is where employers get into trouble:

Staff time and training. Someone must complete training, create cases within three business days, monitor results, handle TNCs, and maintain records. Manageable at 50 hires/year. Significant at 500+.

Compliance error costs. Penalties range from $288 to $2,861 per form for first offenses, up to $28,619 for repeat violations. One ICE audit can expose hundreds of violations at once.

TNC management. Each Tentative Nonconfirmation requires the employer to notify the employee, provide the Further Action Notice, track the eight-day contest deadline, monitor for resolution, and document the outcome. Mishandling even one TNC can result in a discrimination complaint under section 274B of the INA.

The math is straightforward. A 500-employee company with a 5% Form I-9 error rate faces potential penalties of $7,200 to $71,525 for paperwork violations alone — before any knowing-hire penalties are assessed. One ICE audit can cost more than a decade of E-Verify software.

This is why most growing companies invest in E-Verify support — the system is free, but the compliance risk of managing it manually scales with every hire:

  • I-9 compliance software integrates E-Verify into the hiring workflow — automatic data transfer, deadline tracking, TNC workflows, audit-ready records. What to look for →
  • Managed services like remote Section 2 verification handle the entire I-9 and E-Verify process for distributed workforces.
  • E-Verify Employer Agents create and manage cases on your behalf.

One ICE audit can cost more than a decade of E-Verify software.

E-Verify and I-9 Compliance Software

E-Verify works best when integrated into your I-9 workflow rather than managed as a separate portal login.
Automatic data transfer

Form I-9 data flows directly into E-Verify — no re-keying, no transcription errors.

Deadline tracking

The 3-business-day rule runs automatically. You'll never miss a case window.

Case management

Track every case, TNC, and FNC in one dashboard with a full audit trail.

Audit-ready documentation

All I-9 and E-Verify records stored, timestamped, and exportable when an auditor asks.

The i9 Intelligence platform includes full E-Verify integration as part of every plan. Cases are created automatically from completed I-9s, results tracked in real time, and TNC workflows guide your team through each step. For remote teams, our Section 2 verification service handles everything over live video — no in-person meeting, no separate E-Verify login.

Frequently Asked Questions

Can I use E-Verify before hiring someone?

No. E-Verify prohibits prescreening. You may only create a case after an employee has accepted a job offer and completed Form I-9. Using E-Verify to check a candidate's work authorization before making a hiring decision violates program rules and federal anti-discrimination law under section 274B of the Immigration and Nationality Act.

What happens if an employee fails E-Verify?

A Tentative Nonconfirmation (TNC) does not mean the employee is unauthorized to work. The employer must notify the employee in private within 10 federal government working days and provide the Further Action Notice. If the employee chooses to contest, the employer refers the case and the employee has eight federal government working days from the referral date to contact DHS or visit an SSA field office. If the mismatch is not resolved, the result becomes a Final Nonconfirmation and the employer may terminate. Employers must not take adverse action — including termination, suspension, or pay reduction — based on a TNC alone.

How long does E-Verify take?

Most cases return an Employment Authorized result within 3-5 seconds. If the case requires further review, E-Verify returns "E-Verify Needs More Time" — DHS responds to most of these within 24 hours, though some take up to 3 federal government working days. Cases involving a TNC and employee referral may take 10 or more working days to reach a final result.

Can E-Verify be used for existing employees?

Generally no. E-Verify is designed for new hires only — you may not create cases for employees hired before the effective date of your MOU. The exception is federal contractors with the FAR E-Verify clause (FAR 52.222-54), who may be required to verify existing employees assigned to covered federal contracts. E-Verify may also not be used for reverification of expired employment authorization — reverification happens on Form I-9 Supplement B only.

Is E-Verify available in all 50 states?

Yes. E-Verify is available in all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, and the Commonwealth of the Northern Mariana Islands. For a breakdown of which states require E-Verify, see our state requirements guide.

What is an E-Verify Company ID number?

The E-Verify Company ID number is a 4-to-7-digit identifier assigned to your company when you enroll. It appears on every page of your Memorandum of Understanding (MOU), directly below the E-Verify logo. Program administrators can also find it under Edit Company Profile in E-Verify. You need this number for account administration, case management, and any correspondence with E-Verify.

Does E-Verify replace Form I-9?

No. E-Verify supplements Form I-9 — it does not replace it. Every employer must complete and retain Form I-9 for each employee hired after November 6, 1986, regardless of E-Verify participation. Form I-9 documents identity and work authorization. E-Verify adds an electronic verification step against government records. Both are required; neither substitutes for the other.

Need Help with E-Verify?

Our compliance team has 27+ years of I-9 and E-Verify experience.

Questions about a specific document? Our compliance team is available Monday through Friday, 8 AM to 5 PM CT.
Phone: (713) 668-6200 Email: support@i-9intelligence.com Submit a ticket: i-9intelligence.com/submit-a-ticket