E-Verify Enrollment: A Technical Guide for Employer Compliance

Understanding E-Verify and Employment Eligibility

E-Verify is a web-based system that allows enrolled employers to confirm the eligibility of their employees to work in the United States. It functions by electronically matching information provided by employees on the Form I-9 against records available to the Social Security Administration (SSA) and the Department of Homeland Security (DHS).

Who is Required to Enroll?

While E-Verify is voluntary for many employers, it is mandatory under specific conditions:

• Federal Contractors: Companies with a federal contract that includes the Federal Acquisition Regulation (FAR) E-Verify clause must use the system for all new hires and existing employees assigned to the contract.
• State Mandates: Several states (including Arizona, Mississippi, South Carolina, and Alabama) require most or all employers to use E-Verify. Other states require it only for public employers or contractors.
• STEM OPT Employers: Employers wishing to hire F-1 students for a STEM Optional Practical Training (OPT) extension must be enrolled in E-Verify.

The E-Verify Enrollment Process

Enrollment is a one-time process, but it requires the designation of specific roles and the execution of a Memorandum of Understanding (MOU) with the government.

Step 1: Determine Access Method

Most small businesses choose the Employer access method, where the company verifies its own employees. Alternatively, businesses can use an E-Verify Employer Agent to manage the process on their behalf.

Step 2: Sign the Memorandum of Understanding (MOU)

The MOU is a legally binding agreement between your company, the DHS, and the SSA. It outlines the responsibilities of each party, including the requirement to display the 'Notice of E-Verify Participation' and the 'Right to Work' posters in a prominent location.

Step 3: Designate Users

You must assign at least one Program Administrator who can create user accounts for other staff members. Users must complete a mandatory online tutorial and pass a knowledge test before they are authorized to run cases.

Operational Workflow for New Hires

1. Complete Form I-9: The employee must complete Section 1 no later than the first day of employment. The employer must complete Section 2 within three business days.
2. Create a Case: Enter the information from Form I-9 into E-Verify no later than the third business day after the employee starts work for pay.
3. Receive Results: Most cases return an 'Employment Authorized' status instantly. If a 'Tentative Nonconfirmation' (TNC) is issued, the employer must follow specific notification procedures to allow the employee to contest the finding.

Compliance Best Practices

To avoid penalties and audits, ensure that E-Verify is used consistently for all new hires regardless of citizenship status. Never use E-Verify to pre-screen applicants; the system may only be used after an offer of employment has been accepted and the I-9 is complete.