If your company is hiring employees in the United States, it is crucial to understand the legal steps involved in verifying work eligibility. Unlike in many countries, where employment documentation is primarily handled internally, the U.S. has strict federal laws requiring employers to complete specific government forms and adhere to detailed procedures. For HR professionals, compliance during employee onboarding goes beyond just collecting documents, it involves understanding the legal tools used to verify a candidate’s right to work in the U.S.  

 Two key components in this process are Form I-9 and E-Verify. While they serve a similar purpose, they are not interchangeable, and knowing the difference is essential to avoid costly mistakes.  

Form I-9 (officially, the Employment Eligibility Verification Form) is required by law for all employers in the United States. Every new employee, regardless of citizenship status, must complete this form to verify their identity and legal authorization to work in the U.S.  

Think of this as the American equivalent of submitting proof of ID and work permits during onboarding but with federal requirements, mandatory timelines, and documentation rules that must be followed closely.  

Retention Rules You Must Know  

U.S. employers must keep each Form I-9 for three years after the hire date or one year after the employee leaves, whichever is later. Not following these timelines is considered a compliance violation.  

Remote Hiring? Third Parties Can Help  

In today’s global and remote workforce, many U.S. companies allow a designated representative (even outside HR) to complete Section 2 of the Form I-9 on their behalf. This representative could be a notary public, an HR outsourcing provider, or another trusted third party. However, employers are still fully liable for any errors or violations, so training and clear documentation are essential.

E-Verify is an online system managed by the U.S. Department of Homeland Security (DHS) and the Social Security Administration (SSA). It is used to electronically confirm the information provided on an employee’s Form I-9.  

 Although voluntary for many employers, it is mandatory for federal contractors and in certain U.S. states. Importantly, once an employer chooses to participate in E-Verify, it becomes mandatory for all newly hired employees to be verified through the system, no exceptions. Some companies also choose to use it as an extra layer of protection in their hiring process. 

You can think of E-Verify as a second step, like scanning submitted documents against a national database to catch errors or fraud.  

E-Verify is also highly recommended for employers looking to hire non-U.S. citizens or non-immigrant workers. It adds a layer of protection against inadvertently employing individuals who are not authorized to work in the U.S., helping employers stay compliant with immigration laws. 

E-Verify for Remote Workers  

For remote hires in the U.S. (and outside the U.S., where applicable), E-Verify can provide an added level of security by electronically validating the information submitted through Form I-9. This tool is especially helpful for employers working with a remote workforce in different states or time zones, ensuring compliance no matter where the employee is located.

While both tools serve the goal of verifying employment eligibility, their use cases and legal requirements differ:   

Form I-9 verifies the identity and employment eligibility of every new hire in the U.S. Employers are required to complete and retain this form for each employee.   

Common Violations & Penalties (2025 figures):   

• Paperwork errors or missing forms: $281 to $2,789 per violation. 
• Substantive violations: Incomplete forms, missing signatures, or late completion. 
• Retention violations: Discarding I-9s too early or failing to present them during an audit.   

Note: Even minor clerical mistakes (if repeated or uncorrected) can add up fast.   

Knowingly Hiring or Continuing to Employ Unauthorized Workers   

This is where penalties get serious. If your organisation is found employing individuals not authorised to work in the U.S., fines escalate sharply:   

• First offense: $716 to $5,724 per unauthorized worker. 
• Second offense: $5,724 to $14,308 per unauthorized worker. 
• Third or subsequent offenses: $8,586 to $28,619 per unauthorized worker.   

Criminal charges may also apply if a pattern of violations is discovered, including harboring or knowingly employing unauthorized individuals.   

E-Verify is a voluntary tool for most employers but it comes with rules. Misuse can lead to further legal scrutiny.   

Common Mistakes:   

• Using E-Verify before completing Form I-9 
• Running existing employees through the system
• Selective use based on national origin or other discriminatory practices   

These actions may violate anti-discrimination laws and trigger investigations by the DOJ’s Immigrant and Employee Rights Section (IER).   

What HR Must Do to Stay Compliant   

To keep your company in the clear, make these practices a priority:   

1. Use the most current version of Form I-9 (Download it at: https://www.uscis.gov/i-9) 
2. Ensure forms are completed on time and fully 
3. Store forms securely and retain them according to federal guidelines 
4. Train staff on E-Verify do’s and don’ts 
5. Conduct internal audits regularly 
6. Stay updated on penalty adjustments and regulatory changes  

Common Mistakes to Avoid   

Even experienced HR teams can make unintentional errors. Here are some common pitfalls to watch out for:   

• Missing or incomplete fields on Form I-9. 
• Accepting invalid or expired documents without verification. 
• Filing Form I-9s incorrectly or discarding them too early. 
• Using E-Verify for existing employees instead of new hires. 
• Discriminating based on immigration status or document type.   

 These mistakes can lead to compliance issues even if they seem minor. 

Stay Compliant, Wherever You Are  

Form I-9 and E-Verify compliance is not optional, it is essential. In 2025, with penalties now higher than ever, the cost of neglect is steep. Make sure your HR team understands the stakes, avoids common mistakes, and establishes a culture of compliance.   

Whether you are hiring in the U.S. or managing a global workforce, understanding the importance of compliance with employment eligibility verification is crucial. With the complexities of laws like Form I-9 and E-Verify, it is essential to have the right tools and knowledge in place to avoid costly mistakes.  

If you need help navigating these regulations or managing your compliance processes efficiently, we are always here to assist. From ensuring your company meets U.S. requirements to handling onboarding for global teams, we offer expert solutions tailored to your needs.  

Let’s simplify your HR compliance, no matter where your business operates. Connect with us today to learn how we can help.
Email: info@linkcompliance.com
More information: www.linkcompliance.com

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Glossary of Terms  

1. SSA (Social Security Administration):  The U.S. federal agency responsible for administering social security programs, including issuing Social Security numbers (SSNs) used for various identification purposes.  Learn more: https://www.ssa.gov/  
2. DHS (Department of Homeland Security):  The U.S. federal agency responsible for protecting the country from various threats, including those related to immigration and border security. It oversees the E-Verify system for verifying employment eligibility. Learn more: https://www.dhs.gov/  
3. E-Verify:  An online system managed by the DHS and SSA that electronically verifies the employment eligibility of employees in the U.S. It compares information from the employee’s Form I-9 with records available in government databases.  Learn more: https://www.e-verify.gov/  
4. Form I-9 (Employment Eligibility Verification Form):  A U.S. government form that employers must complete to verify the identity and employment eligibility of their employees. It must be completed for all new hires in the U.S., regardless of their citizenship status.  Learn more: https://www.uscis.gov/i-9  
5. Work Authorization: Legal permission granted to non-U.S. citizens or residents to work in the United States. This authorization can come in the form of a visa, employment authorization document, or lawful permanent resident status.
6. Federal Contractors: Companies that have contracts with the U.S. federal government. They are required to use E-Verify to verify the employment eligibility of their employees, regardless of the employee’s nationality.
7. List B (Form I-9 Documents):  A category of documents accepted by U.S. employers for verifying an employee’s identity under Form I-9. These include documents like a driver’s license or other government-issued ID.  Learn more: https://www.uscis.gov/i-9-central/form-i-9-acceptable-documents?topic_id=1&t=b  
8. Penalties for Non-Compliance: Fines and legal consequences that employers may face if they fail to comply with Form I-9 and E-Verify requirements. These can range from paperwork errors to more severe penalties for knowingly hiring unauthorized workers.
9. Immigrant and Employee Rights Section (IER):  A division of the U.S. Department of Justice that investigates violations related to the hiring process, especially discrimination in employment eligibility verification.  Learn more: https://www.justice.gov/crt/immigrant-and-employee-rights-section   

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Sources:    
https://www.federalregister.gov/documents/2025/01/02/2024-31204/civil-monetary-penalty-adjustments-for-inflation    

https://www.e-verify.gov/about-e-verify/what-is-e-verify/e-verify-and-form-i-9#:~:text=Form%20I%2D9%2C%20Employment%20Eligibility,U.S.%20Department%20of%20Homeland%20Security.    

https://www.uscis.gov/i-9-central/legal-requirements-and-enforcement/penalties    

https://www.uscis.gov/i-9-central/form-i-9-acceptable-documents?topic_id=1&t=b