Federal contractors and multi-state employers should be aware of the continued expansion of E-Verify mandates and immigration-related compliance requirements at both the federal and state levels.
While E-Verify remains federally required for certain government contractors under the Federal Acquisition Regulation (FAR), several states are broadening requirements to include public employers, contractors, and, in some cases, private employers. This creates a patchwork of obligations that may differ significantly depending on where work is performed.
E-Verify is a federal, web-based system operated by the U.S. Department of Homeland Security (DHS) in partnership with the Social Security Administration (SSA). It allows employers to confirm whether a new hire is legally authorized to work in the United States by electronically comparing information from Form I-9 (Employment Eligibility Verification) against government records.
Form I-9 verifies the identity and employment authorization of individuals hired for employment in the United States with Section 1 completed by the employee by their first day of work and Section 2 by the employer within three business days.
E-Verify does not replace Form I-9 but serves as an additional verification step that supports and strengthens the existing hiring process and helps employers demonstrate good-faith compliance with federal immigration and employment laws.
At the State level, certain States generally treat E-Verify as part of broader immigration compliance enforcement and proper Form I-9 completion for new hires:
- Alabama – All employers must use E-Verify.
- Florida – Required for many private employers above certain thresholds and for state contractors. Proposed bills aim at removing the 25-employee threshold.
- Georgia – Employers above a size threshold (commonly 10+ employees) must use it.
- Mississippi – All employers required.
- North Carolina – Employers above a size threshold (commonly 25+ employees) required.
- Ohio – Effective March 2026 requires E-Verify for nonresidential construction contractors.
- South Carolina – All employers required.
- Tennessee – Employers above a size threshold (commonly 50+ employees) required.
- Texas – Requires E-Verify for state agencies and public employers. State contractors and subcontractors must use E-Verify depending on contract value. Bills introduced in 2025–2026 sessions would expand E-Verify to nearly all employers.
State penalties for noncompliance, including fines, loss of business licenses, or ineligibility for public contracts. Additionally, state-level audits may occur independently of federal enforcement, increasing overall compliance exposure.
As your PEO compliance partner, C2 Essentials confirms proper E-Verify enrollment where required and ensures consistent onboarding practices across jurisdictions. C2 Essentials conducts E-Verify processing for all government contractor clients and maintains both E-Verify and Form I-9 documentation providing a built-in compliance safeguard and reducing administrative burden.
This value-added service helps ensure timely and accurate verification, supports audit readiness, and allows clients to remain focused on core operations while maintaining alignment with federal and state requirements.
Additional guidance is available through the U.S. Department of Homeland Security at https://www.dhs.gov/e-verify.
Employers can review the federal E-Verify program and requirements at https://www.e-verify.gov.
Evolving requirements are published through official resources such as USCIS I-9 Central: https://www.uscis.gov/i-9-central.
