Whether you are required to use E-Verify depends on where you operate, who you do business with, and — increasingly — what industry you are in. E-Verify is a federal program that compares employee data from Form I-9 against government databases to confirm work authorization — not a background check. For most private employers, it is voluntary. But that is changing fast.
State legislatures have been steadily expanding E-Verify mandates, with new laws taking effect in 2025 and 2026. Federal contractors have been required to use it for years. And even employers who are not legally required to enroll are choosing to do so for the compliance protection it provides. This guide explains who must use E-Verify, who should consider it, and how to determine what applies to your business.
Federal E-Verify Requirements
At the federal level, E-Verify is not mandatory for most private employers. However, two categories of employers are required to use it:
- Federal contractors and subcontractors. Employers with contracts or subcontracts containing the Federal Acquisition Regulation (FAR) E-Verify clause must enroll in E-Verify and verify all new hires — and in some cases, existing employees assigned to the contract. This applies to most federal agencies' procurements above the simplified acquisition threshold.
- Federal agencies. All federal government agencies are required to use E-Verify for their own new hires.
If your company holds a federal contract, check whether the FAR E-Verify clause (FAR 52.222-54) is included. If it is, E-Verify enrollment is a condition of the contract — not optional. The Department of Homeland Security (DHS) provides a supplemental guide for federal contractors with detailed requirements.
State E-Verify Mandates
This is where requirements get complicated. A growing number of states have passed laws requiring some or all employers to use E-Verify. The scope varies significantly — some states mandate it for all private employers, others only for public employers and state contractors, and some apply it to specific industries.
States with All-Employer or Most-Employer Mandates
Several states require E-Verify for all or nearly all private employers, including:
- Alabama — All employers required to use E-Verify (effective April 2012)
- Arizona — All employers required to use E-Verify; violations can result in business license suspension or revocation
- Florida — Currently required for private employers with 25 or more employees. A bill under consideration in 2026 would expand this mandate to all private employers regardless of size
- Georgia — All employers with 10 or more employees must use E-Verify
- Mississippi — All employers required to use E-Verify
- North Carolina — All employers with 25 or more employees must use E-Verify
- South Carolina — All employers required to use E-Verify
- Tennessee — All private employers with 50 or more employees must use E-Verify (smaller employers may use E-Verify or collect identity documents)
For a comprehensive breakdown of every state's requirements — including effective dates, employer size thresholds, and penalties — see our full guide: What States Require E-Verify?
States with Public Employer and Contractor Mandates
Many additional states require E-Verify only for state agencies, public employers, and/or companies that hold state or local government contracts. These include Colorado, Idaho, Indiana, Louisiana, Michigan, Minnesota, Missouri, Montana, Nebraska, Oklahoma, Pennsylvania, Texas, Utah, Virginia, and West Virginia, among others. If your company bids on government contracts in any state, check whether E-Verify enrollment is a contract condition.
Protect Your Business from I-9 Penalties
Not sure if E-Verify applies to you? Use our free I-9 Risk Calculator to assess your compliance exposure, or schedule a free compliance call to discuss your specific situation with our team.
Industry-Specific E-Verify Mandates
Beyond state-wide mandates, some states have passed industry-specific E-Verify laws. The most significant recent example:
Ohio Construction (Effective March 19, 2026)
Ohio's E-Verify Workforce Integrity Act (HB 246), signed December 19, 2025, requires E-Verify for all nonresidential construction contractors, subcontractors, and labor brokers. This covers commercial buildings, highways, bridges, utilities, and public works. Residential construction, agricultural structures, and mobile homes are exempt. Penalties range from $250 to $1,500 per violation, escalating to $5,000–$25,000 for continuing to employ a worker after a Final Nonconfirmation.
For full details, see our Ohio E-Verify Construction Mandate compliance guide.
Other states with industry-specific mandates include Texas (certain industries and licensing requirements) and several states that mandate E-Verify specifically for staffing agencies or agricultural employers.
Local E-Verify Ordinances
Some cities and counties have their own E-Verify requirements that go beyond state law. These are easy to miss because they are not covered by state-level mandates. Notable local ordinances include:
- Lancaster, California — All employers with one or more employees must use E-Verify (Ordinance 934)
- Temecula, California — All businesses licensed by the city must use E-Verify (Ordinance 10)
- Bonita Springs, Florida — Vendors and contractors must E-Verify as a condition of city contracts (Ordinance 9-04)
- Oakland County, Michigan — County contractors must participate in E-Verify (Resolution MR 09116)
- Putnam County, New York — Licensed contractors must sign an affidavit regarding legal workers; county uses E-Verify for public employees
- Washington County, Utah — Businesses in unincorporated areas must use E-Verify to obtain a county business license; violations result in license suspension
- Clark County, Washington — Contractors on contracts exceeding $1 million must use E-Verify
- Pierce County, Washington — County agencies and contractors on contracts valued at $25,000+ must use E-Verify ($100,000+ for road and public works)
- Lakewood, Washington — City contractors must participate in E-Verify (Ordinance 00492)
Check with your city or county clerk's office to confirm whether any local E-Verify ordinances apply to your business.
When Voluntary E-Verify Enrollment Makes Sense
Even if no federal, state, or local law requires your company to use E-Verify, there are strong reasons to enroll voluntarily:
- Legal safe harbor. In many states, employers who use E-Verify in good faith receive a rebuttable presumption that they did not knowingly hire an unauthorized worker. This does not eliminate liability entirely, but it provides meaningful legal protection if your hiring practices are ever questioned.
- Access to the alternative procedure for remote hires. Only employers enrolled in E-Verify can use the DHS-authorized alternative procedure for remote document examination. If you have remote employees, E-Verify enrollment unlocks the ability to verify documents via live video instead of requiring in-person inspection.
- Proactive compliance posture. With U.S. Immigration and Customs Enforcement (ICE) increasing worksite enforcement, employers who voluntarily use E-Verify demonstrate a commitment to compliance that auditors and investigators notice.
- Future-proofing. The trend in state legislation is toward broader mandates, not fewer. Several federal bills have proposed national E-Verify requirements for all employers. Companies that enroll now avoid a scramble if their state expands its mandate.
- Fraud detection. E-Verify compares employee information against DHS and Social Security Administration records. It can detect identity fraud, Social Security number misuse, and document forgery that a visual inspection alone might miss.
“Most employers who come to us voluntarily are motivated by one of two things — either they want the legal protection that comes with good-faith E-Verify use, or they need the remote verification option for their distributed workforce,” says Patricia, Director of Compliance at i9 Intelligence. “Either way, they find that E-Verify combined with a strong I-9 process gives them confidence that their hiring is clean and defensible.”
How to Determine Your E-Verify Requirements
If you are unsure whether your company is required to use E-Verify, start with these steps:
- Check your federal contracts. Review active contracts and subcontracts for the FAR E-Verify clause (52.222-54). If it appears in any contract, you must enroll.
- Check your state's law. Look up your state's E-Verify requirements — our state-by-state guide covers every state with a mandate.
- Check local ordinances. Contact your city or county clerk to ask whether any local E-Verify ordinances apply to your business or industry.
- Check your industry. If you work in construction, staffing, agriculture, or hold any professional licenses, confirm whether your state has industry-specific E-Verify requirements.
- Ask your compliance team — or ours. E-Verify requirements can be layered. A company might be exempt under state law but required under a federal contract, or exempt at the state level but subject to a local ordinance. If you are not sure, talk to a compliance expert who can evaluate your specific situation.
Need Help with E-Verify?
Whether you need to enroll in E-Verify for the first time, want to understand your state's requirements, or are looking for a better way to manage E-Verify alongside your I-9 process, our compliance team is here to help.
Or schedule a free compliance call to discuss your E-Verify obligations and learn how i9 Intelligence can simplify the process.