You’ve finally settled on the right candidate for your position. Next comes the paperwork and new hire onboarding documents that must be completed. One of the most important, and sometimes overlooked steps of the onboarding process, is ensuring your new employee is eligible to work in the U.S. by having them complete a Form I-9, which is a legal requirement for all employers.
With the current increase in immigration enforcement and heightened regulatory scrutiny, verifying new hire’s employment eligibility is crucial.
Whether you’re new to HR or a seasoned professional, this article will walk you through what employment verification means, how it works, and why it’s essential to protect your organization.
Here’s three key takeaways you’ll gain from this article:
As a refresher, employment verification isn't anything new, but its significance is growing, especially as workforce demographics continue to shift and immigration policies increase.
Employment eligibility verification is driven by the Immigration Reform and Control Act of 1986 (IRCA). This landmark legislation made it illegal to knowingly hire individuals who are not authorized to work in the United States. It also required employers to verify the identity and work eligibility of all employees hired after November 6, 1986 via Form I-9.
From that point on, employment verification became, and continues to be, one of the most critical components of legal compliance in the hiring process. And now, with an increased focus on immigration enforcement and employer accountability, it’s even more imperative.
Let’s start with a simple definition. Employment eligibility verification is the process by which an employer confirms their new hires are legally authorized to work in the U.S., along with their identity.
The task of employment verification usually falls on HR, designated hiring managers, or Form I-9 authorized representatives. It’s completed after a job offer has been accepted but before the employee starts working. It’s the process where documentation is gathered, verified, and recorded on Form I-9.
In short, verifying identity and work authorization is important because it’s the law. Employers need to make sure everyone they hire as a W-2 employee is legally authorized to work for them. Hiring someone who isn’t authorized to work in the U.S. can lead to serious legal consequences. We're talking about things such as hefty fines, government audits, damage to your company's reputation, and even criminal penalties.
Beyond avoiding penalties, employment verification helps create a lawful, transparent workplace, which is something every HR department seeks.
Here’s where things get technical. Let’s try to break it down into a simple, clear, and practical process.
The “nucleus” of employment eligibility verification is with the Form I-9, officially known as the Employment Eligibility Verification Form. Form I-9 is a two-section document, which includes:
Note that there also is a “Supplement B” to Form I-9, formerly known as Section 3. This is only used for reverification or employees who are rehired within three years.
The Form I-9 completion process requires the employee to provide documents that prove both identity and employment authorization, and the employer must review and verify these documents. This process is typically completed in person, however in 2023 USCIS released a remote verification provision for employers enrolled in good standing with E-Verify to conduct the process virtually.
Remember that employment verification includes verifying both someone’s identity and authorization to work. This is a key distinction and a common point of confusion. Here is a simple explanation:
Some documents, like a U.S. passport, serve both purposes and fall under List A of the Lists of Acceptable Documents. Other times, you’ll need one document from List B (identity) and one from List C (work authorization) to prove both identity and eligibility to work in the U.S. We will expand on this further.
Knowing the difference is vital because using the wrong combination, or failing to verify correctly, could lead to fines should an audit occur.
Although your onboarding workflow may vary, the employment verification process typically follows these steps:
The documents must be original and unexpired, and fall into one of the three lists:
Employers must avoid over documentation, which is the practice of accepting too many documents. HR must understand what employment eligibility verification is and how to distinguish between these lists.
Many employers are now using now using E-Verify, a federal online system that cross-checks Form I-9 information against Social Security Administration and the Department of Homeland Security government databases. While not yet mandatory nationwide, it is required for federal contractors and for employers in certain states.
E-Verify can provide an additional layer of self-defense and peace of mind to demonstrate your organization’s commitment to compliance.
Failing to properly complete and maintain Form I-9s can bring significant consequences. These include:
In one high-profile case, a cleaning company faced over $6 million fine after a 100% substantive violation rate and evidence of knowingly hiring and employing at least 87 unauthorized workers. (Source, ICE.gov)
So yes, the employment verification process is more than just paperwork; diligence can protect your business from costly lawsuits and fines.
HR plays a crucial role in staying ahead of compliance issues. Here are some best practices that can help your team stay on the right side of the law when it comes to Form I-9 compliance:
In today’s regulatory environment, employment verification is not just a task, it’s a required and vital part of your company’s compliance process. It protects your company, your employees, and your brand.
Whether you’re asking “what is employment eligibility verification” or reviewing your I-9 forms before an audit, taking the time to understand and implement proper procedures will pay off in the long run.
HR is the frontline defense of compliance. By understanding the employment verification process, you’re not only following the law, but you’re building a stronger, more secure organization.