What is I-9 and E-Verify? A guide to employer requirements by state
Every employer completes a Form I-9, but only some must use E-Verify.
Employers in the U.S. complete a Form I-9 for every new hire, but only some employers are required to use E-Verify. Understanding how I-9 and E-Verify work together, and which states make E-Verify mandatory, is a key part of running a compliant hiring process.
The stakes have gone up in 2026. Federal I-9 fines run up to $2,861 per form, ICE reclassified a long list of formerly “technical” errors as fineable violations in March, and states including Ohio, Indiana and Tennessee all added new E-Verify rules this year.
This guide breaks down what Form I-9 and E-Verify are, how they differ, what each state requires as of November 2026, and why many employers who aren’t required to use E-Verify enroll anyway.
What Is Form I-9?
Form I-9, Employment Eligibility Verification, is the federal form employers use to confirm a new hire’s identity and authorization to work in the United States. It’s required by the Immigration Reform and Control Act of 1986, and it applies to every employer, regardless of size, industry, or state.
The form is issued by U.S. Citizenship and Immigration Services (USCIS). Form I-9 must be completed for every employee hired to work in the U.S., including citizens, part-time staff, and seasonal workers. Independent contractors don’t complete one, but misclassifying an employee as a contractor doesn’t remove the obligation.
The three sections of Form I-9
Each section has its own owner and deadline:
| Section | Who completes it | Deadline |
|---|---|---|
| Section 1 | The new employee | No later than the first day of work for pay |
| Section 2 | The employer or an authorized representative | Within 3 business days of the first day of work |
| Supplement B (formerly section 3) | The employer | When reverifying expiring work authorization or rehiring |
In Section 2, the employer physically examines the documents the employee chooses to present from the Lists of Acceptable Documents. The employee picks which documents to show. Asking for specific documents, such as insisting on a green card, can be treated as discrimination.
How long do I-9 records have to be kept?
Employers must keep each Form I-9 for three years after the date of hire or one year after employment ends, whichever is later. Forms must be available for inspection, and when ICE issues a Notice of Inspection, employers generally have three business days to produce them.
The current acceptable Form I-9 editions carry a May 31, 2027 expiration date. Older forms showing a July 31, 2026 expiration can no longer be used for new hires, so it’s worth confirming your onboarding system was updated.
What Is E-Verify, and how is it different from Form I-9?
E-Verify is a free, web-based federal system that compares the information from an employee’s Form I-9 against Department of Homeland Security (DHS) and Social Security Administration (SSA) records. It confirms within seconds, whether the new hire is authorized to work in the U.S.
The simplest way to think about the relationship: Form I-9 collects and documents eligibility, and E-Verify checks it against government records. E-Verify never replaces Form I-9. An employer must complete the I-9 first, then create the E-Verify case using that information.
E-Verify cases must be created no later than the third business day after the employee starts work for pay. If the records don’t match, E-Verify issues a Tentative Nonconfirmation (TNC), and the employee has the right to contest it before any action is taken.
I-9 vs. E-Verify at a Glance
| Category | Form I-9 | E-Verify |
|---|---|---|
| Required for | Every U.S. employer | Federal contractors with the FAR E-Verify clause, employers in mandate states, and voluntary participants |
| What it does | Documents identity and work authorization | Checks I-9 information against DHS and SSA records |
| Who runs it | USCIS (form); ICE enforces | USCIS, in partnership with SSA |
| Timing | Section 1 by day one; Section 2 within 3 business days | Case created by the third business day after the start date |
| Social security number | Optional in Section 1 (unless the employer uses E-Verify) | Required |
| Photo on List B ID | Not required | Required if the document normally contains a photo |
| Reverification | Required when work authorization expires (Supplement B) | Not used for reverification |
| Existing employees | Not applicable after initial verification | Can’t be run on existing employees (limited federal contractor exceptions) |
| Cost | Free form | Free from the government |
Why I-9 and E-Verify compliance matters more in 2026
Form I-9 errors are expensive, and more of them are now fineable. Federal civil penalties for paperwork violations currently range from $288 to $2,861 per form, and penalties for knowingly employing unauthorized workers range from $716 to $28,619 per worker, depending on prior violations.
The bigger shift came in March 2026. On March 16, ICE updated its Form I-9 Inspection fact sheet and moved a number of errors that had been treated as correctable technical mistakes for nearly 30 years into the substantive violation category. Errors such as a missing date of birth, address, or other last names used in Section 1 are now substantive violations that can be fined immediately, with no window to fix them after an inspection begins. ICE updated the fact sheet again on August 31, 2026, keeping the new classifications in place.
The fact sheet also treats deficiencies in an employer’s electronic I-9 system as substantive violations. If you complete I-9s digitally, the system itself needs to meet federal standards for electronic signatures, audit trails, and security documentation, not just the forms inside it.
ICE fines per form so small mistakes compound. A 60-person landscaping company that keyed document numbers by hand for two hiring seasons could find the same error on dozens of forms, with each one carrying its own penalty.
For hourly and field-based employers, the risk tends to concentrate in a few places:
- At the job site. A crew lead completes Section 2 in a truck between jobs, on paper, without a clear review step.
- Manual data entry. Document numbers and expiration dates are retyped from a photo, then retyped again into E-Verify.
- Missed reverification. A seasonal employee’s work authorization expires mid-season, and nobody notices.
- High turnover. More hires per year means more forms, more deadlines, and more chances for a single process gap to repeat.
Which states require E-Verify?
E-Verify is voluntary for most private employers under federal law, but several states make it mandatory, and the rules vary widely. As of November 2026, four states require it for virtually all private employers, five require it above a headcount threshold, and others apply it only to specific industries, public employers, or state contractors.
State laws change often. The table below reflects state requirements as of November 2026 and should be confirmed with each state’s official guidance or legal counsel before you make enrollment decisions.
States that require E-Verify for private employers
| State | Who must use E-Verify | Key details |
|---|---|---|
| Alabama | All employers | Applies to every new hire, regardless of employer size |
| Arizona | All employers | Violations can affect a business license |
| Mississippi | All employers | Applies to every new hire |
| South Carolina | All employers | Verify each new hire within three business days |
| Georgia | Private employers with more than 10 employees; all other employers regardless of number of employees | Private ties E-Verify registration or exemption status to obtaining or renewing a local city or county business license or occupation tax certificate ;public employers are enforced through state audits |
| Florida | Private employers with 25 or more employees; all public employers | In effect since July 1, 2023; compliance is certified on the state reemployment tax return |
| North Carolina | Employers with 25 or more employees in the state | Applies to new hires in North Carolina |
| Tennessee | Private employers with 35 or more full-time equivalent employees; all public employers regardless of number of employees | Mandatory for all Tennessee public employers (any size) and private employers with 35+ full time employees under the same FEIN per the Tennessee Lawful Employment Act |
| Utah | Private employers with 150 or more employees | Also applies to public employers and certain state contractors |
States with industry-specific or Safe-Harbor rules
Some states stop short of a broad mandate but still give E-Verify real weight:
| State | What applies | Key details |
|---|---|---|
| Ohio | Nonresidential construction contractors, subcontractors, and labor brokers of any size | E-Verify Workforce Integrity Act took effect in March 2026 and covers buildings, highways, bridges, utilities, and related infrastructure |
| Indiana | All employers operating in the state, regardless of size | The FAIRNESS Act, effective July 1, 2026, doesn’t mandate E-Verify, but it creates state penalties for knowingly hiring unauthorized workers, and using E-Verify counts as reasonable diligence under the law |
| Louisiana | Private employers | E-Verify is one of two safe harbors from state penalties (the other is keeping copies of specified documents); required for contractors on public contracts |
States that require E-Verify for public employers or contractors
A larger group of states, including Michigan, Minnesota, Missouri, Nebraska, Oklahoma, Pennsylvania, Texas, Virginia, and West Virginia, require E-Verify only for state agencies, public employers, or companies holding certain state or public works contracts. If you bid on public work in any of these states, check the contract terms carefully.
Federal contractors are a separate category. Any business whose federal contract includes the FAR E-Verify clause must use E-Verify, regardless of which state it operates in.
States that limit how you use E-Verify
A few states regulate E-Verify in the other direction. California prohibits employers from using E-Verify to screen applicants before a job offer or to check existing employees in ways federal rules don’t allow, and it requires specific notices when a TNC is issued. Illinois also has notice requirements and protections against E-Verify misuse.
What E-Verify means for multi-state employers
If you have employees in more than one state, the strictest applicable rule usually sets your process. A restaurant group with 40 employees under one FEIN, split between Tennessee and Kentucky locations, likely meets Tennessee’s 35-employee threshold even though most staff work elsewhere. A general contractor with crews on a commercial project in Ohio and a residential project in Indiana faces two different sets of rules in the same pay period.
Not required to use E-Verify? Why proactive employers enroll anyway
If your business isn’t in a mandate state and doesn’t hold federal contracts, E-Verify is optional. Many employers still choose to enroll, because it closes gaps that Form I-9 alone leaves open.
Checks What the I-9 Only Records
Form I-9 shows that someone looked at documents. It doesn’t confirm that the information on those documents matches government records. E-Verify adds that confirmation, so problems surface at onboarding instead of during an audit.
Creates a Legal Presumption in Your Favor
When E-Verify confirms an employee’s work authorization, the employer gains a rebuttable presumption that it did not knowingly hire an unauthorized worker. That’s not blanket immunity, but it’s meaningful evidence of good faith if questions come up later.
Unlocks Remote Document Review
Since August 2023, DHS has allowed qualified employers enrolled in E-Verify and in good standing to examine I-9 documents remotely through a live video call, instead of in person. Employers that don’t use E-Verify can’t use this alternative procedure. For businesses that hire people who never set foot in an office, that flexibility alone can justify enrollment.
Keeps You Ahead of New State Laws
State E-Verify rules are moving quickly. Ohio, Indiana, and Tennessee all changed their rules in 2026, and the Florida House passed a bill to extend E-Verify to all private employers before it died in the Senate in March. A similar bill passed the House in 2025, too. Employers already using E-Verify don’t have to rebuild their onboarding process every time a new law passes.
What to Know Before You Enroll
Voluntary enrollment comes with real obligations, and it’s better to know them up front:
- You must run E-Verify on every new hire at each enrolled hiring site, not just some employees.
- You can’t use E-Verify to prescreen applicants or check existing employees.
- You agree to the terms of the E-Verify Memorandum of Understanding (MOU), including how TNCs are handled.
- Employees who receive a TNC must be allowed to contest it, and you can’t take adverse action while the case is open.
Those obligations are manageable with the right workflow. They become a problem when E-Verify sits in a separate portal and depends on someone remembering to log in.
Common I-9 and E-Verify Mistakes to Avoid
Most I-9 and E-Verify violations don’t come from bad intent. They come from busy people working across job sites, shifts, and locations with a paper-heavy process.
| Mistake | Why it happens | How to prevent it |
|---|---|---|
| Missing the 3-business-day Section 2 deadline | New hire starts at a remote job site | Use an authorized representative or a mobile workflow |
| Typos in document numbers or dates | Manual retyping from a photo or paper copy | Scan documents so data fills automatically |
| Requesting specific documents | Supervisor asks for a “green card” or “driver’s license and Social Security card” | Let the employee choose from the Lists of Acceptable Documents |
| Creating the E-Verify case late | E-Verify lives in a separate portal | Trigger the case automatically once Section 2 is approved |
| Missing reverification | No system is tracking work authorization expiration dates | Set automated alerts well before the expiration date |
| Using an outdated form | Old PDF saved in a shared drive | Use a system that updates the form edition automatically |
| Inconsistent document review | Different managers review documents differently | Apply the same checks to every hire |
How Fingercheck Automates I-9 and E-Verify
Fingercheck Advanced I-9 & E-Verify brings employment eligibility verification into the same platform that already runs your time tracking, scheduling, and payroll. Here’s how the workflow handles the gaps above.
New hires scan their IDs instead of typing. The I-9 fills in automatically from scanned documents, and HR reviews the results without retyping document numbers.
Errors are caught before the form is filed. More than 150 checks run in real time, so mistakes are corrected before each I-9 is submitted. AI-assisted fraud analysis reviews every document the same way, for every new hire.
Section 2 doesn’t require an office visit. HR or a designated delegate can complete the I-9 process from wherever the new hire starts, so crews hired at a job site don’t miss the three-business-day deadline.
E-Verify cases are created automatically. Once documents are approved, the case goes to E-Verify without anyone logging into the government portal, and follow-ups are tracked for you. If you aren’t using E-Verify today, it’s built in and ready when you need it.
Expiring work authorizations are flagged. The Workforce Readiness Center tracks expiration dates and outstanding E-Verify follow-ups in one place, so reverification never slips.
Audit-ready records. Every step is captured in an audit trail, and I-9s can be printed or exported in minutes if you receive a Notice of Inspection.
Since I-9 data flows directly to E-Verify, the employee record, and payroll, you work with one system and one support team instead of juggling multiple vendors.
Payroll, time, I-9 and E-Verify in one place
See how Fingercheck brings I-9, E-Verify, scheduling, time tracking, and payroll work together in one platform without juggling separate systems.
I-9 and E-Verify FAQs
This article is for general information only and isn’t legal advice. State E-Verify laws change frequently. Consult qualified legal counsel or your state’s official guidance about how I-9 and E-Verify requirements apply to your business.
