Federal and state penalties for noncompliance 

The Department of Homeland Security (DHS) may impose civil fines on employers who knowingly hire or continue to employ individuals who don’t have authorization to work in the U.S.  

If a violation is suspected, the DHS will issue a Notice of Intent to Fine, giving the employer an opportunity to respond. Employers have 30 days from receipt of the notice to request a hearing and present their case. If a violation is confirmed, employers can face a range of financial penalties based on the situation: 

• I-9 work form paperwork violations: $288 - $2,861  
• Knowingly recruiting, referring, retaining, or hiring unauthorized workers 
  • First offense: $716 - $5,724 per worker 
  • Second offense: $5,724 - $14,308 per worker 
  • Third or more offense: $14,308 - $28,619  
• Failing to inform DHS of continuing employment after a notice of final nonconfirmation: $973 – $1,942  

States requiring E-Verify use can also impose varying penalties, including: 

• Additional fines 
• Loss of business license 
• Contract termination (for public contractors) 
• Civil penalties  

Other employer considerations 

Companies in E-Verify mandatory states should ensure that employees complete proper training to understand the E-Verify verification process. They can also visit the E-Verify website for additional employer and employee resources.  

Furthermore, employers not in states that require E-Verify use can still voluntarily enroll and participate in the program, as it offers legal protection for companies that demonstrate good faith in verifying worker eligibility, thus minimizing liability in the event of an audit. 

How does E-Verify work? 

After a new hire employee submits the completed Form I-9 with acceptable documents, the employer will log into their E-Verify account and enter the relevant data (e.g., employee’s name, date of birth, social security number, etc.) for verification.  

The program then cross-checks the information with the DHS and SSA databases.  

Based on the information provided, employers will receive one of the following results:

• Employment Authorized: The employee’s information matched DHS and SSA records. 
• E-Verify Needs More Time: This case was referred to the DHS for further verification. 
• Tentative Nonconfirmation (aka E-Verify Mismatch): The information provided doesn’t match information in the DHS and/or SSA database(s), and additional action is required. 
• Case in Continuance: The employee has contacted the DHS or visited an SSA field office, but more time is needed to determine a final case result. 
• Close Case and Resubmit: The DHS or SSA requires the employer to close the case and create a new case for this employee. This result may occur when the employee’s U.S. passport, passport card, or driver’s license information is incorrect. 
• Final Nonconfirmation: E-Verify can’t confirm the employee’s employment eligibility after the employee contacted the DHS or visited the SSA. 

2026 I-9 form and E-Verify updates 

In 2025, USCIS released an updated I-9 Form with revised language and document descriptions. Key changes include: 

• “A noncitizen authorized to work” is now labeled “An alien authorized to work.” 
• Updated Form I-9 Instructions and acceptable documents list. 
• Enhanced integration with E-Verify+, which allows employees to securely manage their documents. 

What is an I-9 form? 

Form I-9 is a federal document U.S. employers must complete for every person they hire. Its purpose is to verify each new hire’s identity and authorization to work in the U.S.  

Who completes the I-9 form? 

Per Form I-9 instructions, newly hired employees must complete I-9 Form Section 1 on or before their first day of work.  

Employers or an authorized representative must then complete I-9 Form Section 2 within three business days of the employee’s start date by physically reviewing original documents that prove the employee’s identity and work authorization.  

Supplement B, however, is used for rehiring, name changes, or reverification of work authorization. 

Form I-9 acceptable documents 

Employees must present either one document from List A (proves both identity and work authorization), or one document from List B (identity) and one from List C (work authorization) within three business days of their start date. Examples include: 

Alternative options for E-Verify employers 

Effective August 1, 2023, E-Verify enrolled employers who are in good standing have the option to remotely examine copies of accepted Form I-9 documents instead of physically reviewing them in person.  

To qualify, all of the employer’s hiring sites must be enrolled in E-Verify, fully compliant with E-Verify requirements, and use the program to confirm every new hire’s employment eligibility. 

Under this alternative procedure, E-Verify companies must:  

1. Receive and examine copies (front and back, if two-sided) of the employee’s I-9 Form documents. 
2. Conduct a live video interaction with the employee, during which the same documents must be presented to confirm they appear genuine and relate to the individual. 
3. Check the alternative procedure box on the August 2023 version of the I-9 Form or note “Alternative Procedure” in the Additional Information field on older versions. 
4. Retain clear and legible copies of all reviewed documents in case of audit or inspection. 

Confidently handle compliance with Paylocity 

E-Verify helps ensure compliance with immigration laws by reducing the risk of hiring unauthorized workers. But managing it and I-9 Forms shouldn’t have to be a burden.  

With expert guidance and user-friendly technology, Paylocity makes compliance easier for everyone:  

• An Onboarding solution that streamlines employee verification with automated, built-in tools for securely collecting and storing documentation while tracking work authorization expirations— all in one centralized, compliant system.  
• Our E-Verify training course ensures company administrators handle every step of the process accurately and confidently. 
• Robust documentation tools that easily upload, store, and retrieve important materials, such as Form I-9 and supporting documents. 

Request a demo today to see how much easier onboarding and compliance can be.