Federal contractors must enroll in E-Verify within 30 days of contract award and verify new hires within 3 business days. Existing employees assigned to federal contracts require verification within 90 days. Compliance involves understanding state-specific mandates, designating a compliance officer, and establishing verification timelines. Small businesses should check for exemptions based on company size. Electronic I-9 management solutions streamline compliance processes. The following sections provide detailed implementation strategies for maintaining full regulatory compliance.
Understanding the Core Requirements of E-Verify for Federal Contractors
Every federal contractor must understand the fundamental requirements of E-Verify to maintain legal compliance and avoid penalties. The program serves as an electronic verification system that confirms employee eligibility to work legally in the United States.
Contractors with agreements containing the FAR E-Verify clause must enroll within 30 days of contract award. After enrollment, companies must verify all new hires within 3 business days of their start date and existing employees assigned to the federal contract within 90 days.
The verification process requires employees to have a valid Social Security number and uses information from Form I-9. While E-Verify is voluntary for employers under federal law, specific states have enacted mandates making its use mandatory.
Beyond E-Verify compliance, contractors should also develop inclusive workplace policies that align with Equal Employment Opportunity laws to enhance their federal contract compliance strategy.
Companies should note key thresholds: subcontracts valued over $3,500 require E-Verify participation, while those under this amount are exempt. Work performed outside the United States is not subject to these requirements.
Implementing State-Specific E-Verify Regulations in Your Hiring Process
While federal E-Verify requirements create a baseline for compliance, organizations must navigate a complex patchwork of state-specific regulations that greatly impact their hiring processes.
States like Alabama, Arizona, Mississippi, and South Carolina mandate E-Verify for all employers, while others like Idaho and Minnesota only require it for public contractors.
To implement these varying requirements effectively, employers should:
- Identify applicable state and local mandates
- Designate a compliance officer familiar with local regulations
- Establish verification timelines aligned with the three-day rule
- Create state-specific record-keeping protocols
- Display required posters and provide training where mandated
Small businesses should verify if exemptions apply in their jurisdiction, as many states offer exceptions based on company size. Georgia offers a notable example where only employers with over 10 employees must comply with E-Verify requirements.
With recent regulatory changes affecting government contractors in 2025, staying informed about evolving compliance requirements has become increasingly important for organizations seeking government contracts.
Organizations seeking to streamline compliance can utilize electronic I-9 management solutions that integrate directly with the E-Verify system.
Frequently Asked Questions
Can E-Verify Be Used for Current Employees?
E-Verify typically cannot be used for current employees.
Only federal contractors with specific contracts containing the Federal Acquisition Regulation (FAR) E-Verify clause may verify existing employees.
Regular employers must restrict E-Verify use to new hires only.
For existing employees, companies should continue using Form I-9 for employment verification needs.
Employers who improperly use E-Verify for current staff may face legal consequences and potential discrimination complaints.
What Happens if E-Verify Returns a Tentative Non-Confirmation?
When E-Verify returns a Tentative Nonconfirmation (TNC), employers must promptly notify the employee and provide a Further Action Notice.
The employee has 10 federal government working days to decide whether to contest the TNC. During this resolution period, employers cannot take adverse actions against the employee.
If contested, the case is referred to DHS or SSA, and the employee has 8 federal government working days to resolve the discrepancy.
How Does E-Verify Handle Remote Workers in Different States?
E-Verify accommodates remote workers through its remote document verification process. Employers can examine documents via live video interaction following DHS-authorized procedures.
Companies must consider both federal requirements and state-specific mandates, as some states require E-Verify for certain employers.
When implementing remote verification, employers must apply the process consistently for all employees at a given hiring site.
Organizations can enroll specific hiring locations in E-Verify based on the applicable state regulations.
Are There Exceptions for Seasonal or Temporary Workers?
E-Verify provides no specific exceptions for seasonal or temporary workers based solely on their employment status. These workers must be verified through E-Verify if their employer is enrolled in the program.
However, exemptions exist for contracts valued at or below $150,000 or lasting fewer than 120 days. Regardless of E-Verify requirements, all employers must complete Form I-9 for temporary workers.
Consistent verification practices help employers maintain compliance across all employee categories.
Can I Delegate E-Verify Responsibilities to Third-Party Vendors?
Yes, employers can delegate E-Verify responsibilities to third-party vendors known as E-Verify employer agents.
These agents can manage the verification process, often bundling it with other services like background checks or payroll management.
However, the employer remains legally responsible for compliance with all E-Verify requirements.
When using a third-party vendor, employers must still sign the Memorandum of Understanding (MOU) and display required E-Verify participation posters at their workplace.
