Mastering E-Verify in 2025: Federal and State Compliance Essentials

In today’s complex employment landscape, ensuring your workforce is authorized to work in the United States is more critical than ever. E-Verify, the federal electronic system for employment eligibility verification, plays a pivotal role in this process. As we navigate through 2025, understanding federal and state E-Verify requirements is essential for maintaining compliance and supporting your organization’s operations.

E-Verify is an online system operated by the U.S. Citizenship and Immigration Services (USCIS) in partnership with the Social Security Administration (SSA). It allows employers to confirm the employment eligibility of their newly hired employees by comparing information from the employee's Form I-9 against federal records. While E-Verify is voluntary for many employers, certain federal contractors and employers in specific states are mandated to use the system.

At the federal level, the use of E-Verify is generally voluntary. However, federal contractors and subcontractors with contracts containing the Federal Acquisition Regulation (FAR) E-Verify clause are required to use the system. Key provisions include:

• Who is Covered: Federal contractors and subcontractors working under contracts with the FAR E-Verify clause.
• Requirements: These employers must verify the employment eligibility of employees assigned to the federal contract as well as all new hires, regardless of their assignment to the contract.
• Exemptions: Contracts lasting fewer than 120 days, valued at $150,000 or less, or involving only commercially available off-the-shelf (COTS) items. Employees with valid security clearances or HSPD-12 credentials may also be exempt.

State-specific E-Verify requirements vary significantly, creating a complex compliance landscape for employers operating in multiple jurisdictions. Some states mandate E-Verify for all employers, while others limit its use to public employers and contractors.

States Requiring E-Verify for All Employers

• Alabama: Employers must use E-Verify for all hires, with penalties including probationary periods and revocation of business licenses.
• Arizona: All employers must use E-Verify and retain employee E-Verify records for specified time periods.
• South Carolina: Employers are mandated to use E-Verify, with penalties for non-compliance, including suspension of business licenses.
• Mississippi: E-Verify is required for all employers, including those hiring independent contractors.
• North Carolina: Employers with 25 or more employees must use E-Verify.
• Georgia: Employers with over 10 employees must use E-Verify, while smaller businesses must provide proof of exemption.
• Florida: Public employers and contractors must use E-Verify, though independent contractors and household staff are exempt.

States Requiring E-Verify for Public Employers or Contractors

• Idaho, Indiana, Louisiana, Michigan, Minnesota, Missouri, Nebraska, Oklahoma, Pennsylvania, Texas, Virginia, and West Virginia: These states have laws mandating E-Verify use for state agencies, public employers, and contractors. Specific requirements and penalties vary by state.

Non-compliance with E-Verify mandates can result in significant penalties, including fines, probation, suspension, or even revocation of business licenses. In some states, penalties extend to publicizing the names of non-compliant employers or prohibiting them from bidding on state contracts.

1. Train HR Teams: Ensure your HR staff is well-versed in completing Form I-9 and using the E-Verify system accurately.
2. Stay Updated on Regulations: Monitor federal and state-specific E-Verify requirements to ensure your processes remain compliant.
3. Conduct Internal Audits: Regularly review your employment eligibility verification practices and records.
4. Implement E-Verify Policies: Develop clear policies to integrate E-Verify into your hiring process and communicate these policies to your hiring managers.
5. Use Technology: Automate the E-Verify process through integration with your HR software to reduce errors and improve efficiency.

Navigating E-Verify requirements can be overwhelming, but DISA Global Solutions is here to help. With our expertise in compliance and employment screening, we simplify the complexities of E-Verify by providing tools and resources tailored to your organization’s needs.

Our integrated solutions streamline the E-Verify process, ensuring accuracy and efficiency while keeping you compliant with federal and state regulations. Whether you’re managing multi-state compliance or need assistance training your HR teams, DISA’s end-to-end support ensures you can focus on growing your business with confidence.

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Founded in 1986, DISA is the industry-leading provider of employee screening and compliance services. Headquartered in Houston, with more than 35 offices throughout North America and Europe, DISA’s comprehensive scope of services includes background screening, drug and alcohol testing, DOT & HR compliance, occupational health services, and I-9/ E-Verify. DISA assists employers in making informed staffing decisions while building a culture of safety in their workplace.